(With Up Dated Numbers as of April 1, 2023)
If you need to declare bankruptcy, you must take the Means Test. This test examines how much money your family has made in the past six months. It also considers how many people live in your home, including anyone you support.
The Means Test doesn’t count Social Security or Child Tax Credit money.
Most people make less money than the Means Test limit. If you make more money, filing for Chapter 7 bankruptcy might be harder.
| # In Household | Monthly | 6 Months | Annual |
| 1 | 5,581 | 33,551 | 67,102 |
| 2 | 7,074 | 42,446 | 84,892 |
| 3 | 8,495 | 50,975 | 101,951 |
| 4 | 10,190 | 61,144 | 122,289 |
| Add each add’l person | 825 | 4,950 | 9,900 |
Source Census Bureau <Median Family Income by Family Size as of April 1, 2023
An experienced lawyer can help you get around the Means Test. You can take multiple deductions to help you qualify for Chapter 7 or pay less in Chapter 13. These include things like taxes, child support, and bills for things like your house and car.
You should talk to a lawyer if you’re worried about the Means Test. Lawyers can work with the numbers: both income and allowed expenses. The aim is to see if you can file Chapter 7. Or, if you file Chapter 13 to pay a small dividend to unsecured creditors.
Disclaimer: Remember, legal advice blogs are just for learning. If you need real legal help, you should talk to a lawyer.