The means test is a two-part calculation that determines whether a debtor is eligible to file a Chapter 7 Bankruptcy or a Chapter 13. If the debtor is not eligible for a Chapter 7 the means test will calculate the disposable income available to repay creditors in a Chapter 13 bankruptcy.

Household Size Median Monthly Income Median Annual Income

1 $5,244.83 $62,938.00
2 $6,952.92 $83,435.00
3 $7,727.92 $92,735.00
4 $8,877.50 $106,530.00
5 $9,627.50 $115,530.00
6 $10,377.50 $124,530.00
7 $11,127.50 $133,530.00
8 $11,877.50 $142,530.00

In April of 2021 new means testing figures went into effect. These figures are determined by the IRS and US Census Bureau’s family income data. The US Trustee applied the updated data to all bankruptcy cases filed after April 1st of 2021.

If you are considering filing bankruptcy, don’t be too frightened by these figures if you are running close to or slightly above these numbers. There are other factors that go into a means test calculation that can help bring your income under the Median to help qualify for a chapter 7. Some of those factors include: tax deductions, mandatory contributions to retirement plans, union dues, health insurances etc. For more information about the means test contact your Yuba City Bankruptcy attorney at 530-797-4402.

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