.
FAMILY SIZE
STATE
1 EARNER
2 PEOPLE
3 PEOPLE
4 PEOPLE *
Alabama $38,321 $46,025 $51,182 $61,593
Alaska $52,611 $70,811 $77,200 $88,003
Arizona $41,385 $53,781 $56,508 $61,267
Arkansas $34,203 $44,048 $47,035 $56,275
California $47,683 $61,539 $66,050 $74,806
Colorado $47,361 $62,431 $69,252 $79,905
Connecticut $56,773 $70,342 $80,263 $99,440
Delaware $48,049 $59,927 $71,259 $79,829
District of Columbia $50,552 $78,313 $78,313 $115,995
Florida $40,766 $49,729 $52,840 $62,742
Georgia $39,694 $50,712 $55,711 $64,223
Hawaii $51,099 $62,432 $75,900 $82,726
Idaho $39,120 $49,242 $52,077 $61,301
Illinois $45,545 $57,964 $66,758 $79,074
Indiana $39,987 $49,669 $57,696 $67,296
Iowa $40,650 $55,217 $62,251 $72,234
Kansas $41,611 $55,801 $62,850 $72,665
Kentucky $38,356 $44,696 $51,859 $62,583
Louisiana $37,931 $46,169 $54,638 $65,778
Maine $40,532 $51,738 $60,195 $74,738
Maryland $57,455 $73,947 $84,151 $100,928
Massachusetts $53,496 $64,174 $80,337 $99,067
Michigan $43,677 $50,079 $58,467 $70,237
Minnesota $46,161 $61,170 $71,784 $84,251
Mississippi $33,126 $41,601 $45,536 $54,765
Missouri $38,895 $50,603 $58,355 $67,255
Montana $38,369 $49,743 $56,308 $68,313
Nebraska $39,192 $55,519 $64,700 $71,247
Nevada $43,146 $55,573 $60,855 $65,179
New Hampshire $51,550 $61,679 $79,349 $91,750
New Jersey $60,322 $67,503 $84,896 $101,957
New Mexico $37,246 $49,515 $51,782 $54,640
New York $45,931 $56,113 $66,953 $81,212
North Carolina $37,892 $48,710 $54,310 $65,036
North Dakota $42,953 $58,742 $67,244 $79,336
Ohio $40,471 $50,253 $58,376 $70,599
Oklahoma $37,466 $48,313 $53,332 $60,395
Oregon $42,877 $52,316 $57,429 $66,616
Pennsylvania $45,092 $53,091 $66,487 $76,682
Rhode Island $46,335 $59,624 $66,800 $86,267
South Carolina $37,660 $47,853 $50,824 $62,912
South Dakota $36,799 $55,026 $61,612 $69,006
Tennessee $37,967 $47,234 $51,642 $60,909
Texas $39,673 $53,950 $57,825 $63,859
Utah $48,176 $55,555 $59,626 $64,780
Vermont $43,544 $55,110 $69,736 $77,296
Virginia $50,605 $64,288 $71,644 $87,498
Washington $51,671 $61,919 $69,195 $80,404
West Virginia $40,887 $44,018 $50,987 $61,691
Wisconsin $41,880 $55,671 $64,724 $76,117
Wyoming $48,832 $62,072 $67,059 $73,362

* Add $7,500 for each individual in excess of 4.

 

COMMONWEALTH OR
U.S. TERRITORY
FAMILY SIZE
1 EARNER
2 PEOPLE
3 PEOPLE
4 PEOPLE *
Guam $36,480 $43,617 $49,704 $60,149
Northern Mariana Islands $24,496 $24,496 $28,500 $41,918
Puerto Rico $21,190 $21,190 $21,479 $27,838
Virgin Islands $28,943 $34,786 $37,090 $40,636

* Add $7,500 for each individual in excess of 4.
Please recall that deductions are allowed. If the annual median household income exceeds the applicable number in the table above then an individual may complete the other parts of the Means Test. The allowed deductions may show that they can not fund a meaningful Chapter 13 Plan and the presumption of abuse would not arise. However, other factors may still make Chapter 13 the better chapter.

The official form for Chapter 7 means testing can be used to determine if a presumption of abuse would arise if a Chapter 7 Bankruptcy Petition were filed under the circumstances set forth in the form.

Bear in mind that even if a presumption of abuse does not arise, a debtor can still face a motion to dismiss based on all the facts and circumstances. 

Robert N. Zimmerman, Attorney         
1106 N Parsons Ave., Ste. 102 
Brandon, FL 33511
813-221-8287
bobz765@yahoo.com                         

Providing Legal Advice and Representing
Debtors With Bankruptcy Filings in Florida Under Chapter 7 or Chapter 13 in the Tampa Division
of the US District Court, Middle District of Florida. 
                          
Admitted to Practice in the state of Florida and the US District Court, Middle District of Florida including it's Bankruptcy Court.

The Chapter 7 Means Test which is found in the U.S. Bankruptcy Code is not a true pass or fail test. Instead, it is designed to raise a presumption of abuse if a Chapter 7 Bankruptcy Petition is filed by a individual who has income above what is called the applicable median income. 

The Means Test only applies to a consumer debtor. Consequently, if most of a person's debt is the result of business or otherwise not consumer then the Means Test does not apply. Part I of the Means Test determines if the Means Test applies.

If the nature of the overall debt is consumer then the Means Test compares the person's household income to the median income for the state where the person resides. The number of people in the household also effects the median income.

If the household income is at or below the median income for the household size in the applicable state then the presumption of abuse does not arise. The initial comparison of the numbers is in Part II of the Chapter 7 Means Test. If the presumption does not arise in Part II there is no need to take the deductions allowed in the following parts.

Stated more briefly, If an individual has:
1. primarily consumer debt and
2. household income above the applicable state median for the household size of the person and
3. has sufficient disposable household income after taking the allowed deductions,
then the presumption of abuse would arise if a Chapter 7 Bankruptcy Petition were filed.

An individual consumer debtor is thought to be able, according to the Means Test, to fund a meaningful Chapter 13 Plan, Consequently, a presumption of abuse of the Bankruptcy code arises if a debtor who could pay the unsecured creditors tries to obtain a Chapter 7 discharge. There are some limited  circumstances that may overcome the presumption of abuse.

Only The Last Six Months Are Used To Calculate

Annual household income is determined by averaging the household income for six months prior to the date of filing the petition in bankruptcy. The month in which the petition is filed is not included. Instead, we go backwards in time six full months beginning with the month before the petition is filed. The number resulting from the six month average is then multiplied by 2 to calculate annual household income.

The U.S. Dept. of Justice operates the U.S. Trustee Program and they have provided an easy to read table a copy of which is provided below along with a link to their website.
Robert N Zimmerman, Jr.   (813) 221-8287   Brandon, Florida 
Chapter 7 Means Test
 
Chapter 7 Means Test

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