Failing the means test closes the Chapter 7 door but does not eliminate your options. Here is what you can do.
Option 1: File Chapter 13 Instead
Chapter 13 has no income ceiling. If you fail the Chapter 7 means test, it is because you have enough disposable income to fund a repayment plan -- which is exactly what Chapter 13 requires. Your plan payment will be based on your disposable income, and after 3-5 years you receive a discharge of remaining qualifying debts.
Option 2: Retime Your Filing
Because the means test uses a 6-month lookback, the timing of your filing matters. If you had unusually high income during part of that window (bonus, overtime spike, tax refund), waiting a few months until those high-income months fall outside the window may change the result.
Option 3: Claim Special Circumstances
Even if the numbers show a presumption of abuse, you can rebut it by demonstrating special circumstances. Examples include serious medical conditions requiring treatment, active military duty, or a recent job loss. You must document the circumstances and show they are specific to your situation.
Option 4: Review Your Deductions
Many people fail the means test because they missed allowable deductions. Make sure you are claiming:
- Full secured debt payments (mortgage, car loans)
- Health insurance premiums for the entire household
- Out-of-pocket medical expenses exceeding the IRS standard
- Mandatory retirement contributions
- Childcare and education expenses
- Actual housing costs if they exceed the IRS standard (in some jurisdictions)