Public Guide
Income and the Chapter 7 Means Test
A general overview of current monthly income, median comparison, expense deductions, presumptions, exceptions, and official forms.
Income above a state median does not by itself decide Chapter 7 eligibility. It generally leads to the additional calculation on Official Form 122A-2, subject to statutory definitions and exceptions.
“Current monthly income” is a Bankruptcy Code term generally based on income received during the six full calendar months before filing, with specified inclusions and exclusions. It is not necessarily the same as current pay, taxable income, or annual salary.
The median comparison uses household size, state, and U.S. Trustee data effective for the relevant filing date. The second form applies standardized and allowed expense categories and calculates whether a presumption of abuse arises. Special circumstances and other provisions may also matter.
The means test is not the only Chapter 7 inquiry. Good faith, ability to pay, prior cases, debt classification, business activity, property, and local precedent can remain relevant.
Official Sources
This page provides general information and does not calculate current monthly income, allowed deductions, a presumption, or Chapter 7 eligibility.