The Means Test, Explained

Why the Means Test Exists

The means test is the gate Congress built to direct higher-income filers away from Chapter 7 liquidation and toward Chapter 13 repayment. According to the U.S. Trustee Program (justice.gov/ust/means-testing), the test asks a single threshold question first: is your income below or above the median family income for your state and household size? Everything else flows from that answer. People's Justice is not a law firm and does not provide legal advice — what follows is a plain-language walkthrough of how the courts and the U.S. Trustee describe the calculation.

Working Through the Test, Step by Step

Step 1 — Calculate your 6-month average gross income

Add up your household's gross income from all sources over the 6 calendar months before the month you file, then divide by six and annualize. The U.S. Trustee captures this on Official Form 122A-1, the 'Statement of Your Current Monthly Income.' Gross means before deductions, and 'current monthly income' is a defined, look-back figure — not simply your most recent paycheck.

Step 2 — Compare to your state median

Compare your annualized income to the median family income the U.S. Trustee publishes for your state and household size. The current median income tables are effective April 1, 2026 (UST). If you are below the median, your case is not presumed to be an abuse of Chapter 7, and — per justice.gov/ust — the chapter is generally available without the additional calculation.

Step 3 — If above median, complete Form 122A-2

Filers above the median move to Official Form 122A-2, the longer means-test calculation. This form subtracts allowed living expenses (many tied to IRS national and local standards) and certain mandatory debt payments to arrive at monthly disposable income. The amount of disposable income left over is what determines whether a presumption of abuse arises. Because the expense standards and median tables both change over time, an attorney works from the most recent figures for your district.

Common Misunderstandings

Being above the median is not an automatic disqualification from Chapter 7 — it simply triggers the Form 122A-2 calculation, which many above-median filers still pass after allowed expenses are subtracted. Conversely, being below the median does not guarantee a discharge; the other requirements (credit counseling, the 8-year bar, honest disclosure to the trustee) still apply. The means test measures income, not whether your individual debts are dischargeable.

People's Justice is not a law firm and does not provide legal advice; we are not a government agency. Running the means test correctly for your household — with the right median table and the right expense standards — is a legal task, and we can connect you with a licensed attorney to do it.

California median income (2026)

If you are filing in California, the median family income the U.S. Trustee uses for the means test depends on your household size. For cases filed on or after April 1, 2026, the California figures are approximately $79,253 for a household of 1, $102,797 for a household of 2, $116,541 for a household of 3, and $139,071 for a household of 4. For households larger than four, add about $11,100 for each additional person (U.S. Trustee median family income, effective April 1, 2026; justice.gov/ust/means-testing).

A California filer whose annualized 6-month gross income is below the figure for their household size is generally not presumed to be abusing Chapter 7 and can usually proceed without the full means-test calculation. A filer above the applicable median completes the longer Official Form 122A-2, which subtracts allowed living expenses to determine disposable income. These figures change with each U.S. Trustee update, so always confirm the current California table for your household size before relying on the numbers above (U.S. Trustee median family income, effective April 1, 2026; justice.gov/ust/means-testing). People's Justice is not a law firm and does not provide legal advice; we are not a government agency, and we can connect you with a licensed attorney to apply the right figures to your situation.