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What You Need To Know About The Means Test

The new bankruptcy law, which went into effect in October of 2005, creates limits on who can file a Chapter 7 bankruptcy. These rules are often referred to as the bankruptcy means test.

Income Analysis

Under the means test created by the new bankruptcy law, in order for an individual or couple to be eligible for relief in a Chapter 7 bankruptcy, we must first compute your average household income for the six calendar months which proceed the month in which your bankruptcy case will be filed. In order to make these computations, we will normally need copies of all your pay stubs for the entire six-month period or a summary of your income history from your employer for this period of time. If your average income for those six months is less than the median income for your size household in the state where you live, no further analysis is normally necessary, and you will be eligible for a Chapter 7 bankruptcy. Even if your income exceeds the median income, you may still be eligible.

Expense Analysis

If your average household income exceeds the median income for your size household, additional analysis will be necessary under the means test to determine whether you would be eligible for a Chapter 7 case. If this additional analysis is required, we will need to evaluate the amounts of your monthly house payments, car payments, payroll deductions, insurance costs and many other factors. We have observed that most of our clients have been ultimately determined to be eligible for a Chapter 7 case, even if their average income exceeds the median income amounts.

Schedule Your Personal Consultation

No final determination can be made about your eligibility for Chapter 7 bankruptcy without having a personal consultation with an experienced bankruptcy attorney. We offer a free consultation for bankruptcy clients.

Please contact us for an appointment for a bankruptcy consultation.

We are anxious to assist you. Call us now at 815-229-5333.


(Effective Nov 1, 2019)

Household Size Median Income
1 Person $53,900
2 Persons $71,301
3 Persons $82,268
4 Persons $101,240
5 Persons $110,240
6 Persons $119,128
7 Persons $128,240
8 Persons $137,240

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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Davitt Law Office, PLLC
6072 Brynwood Drive, Suite 206 
Rockford, IL 61114

Phone: 815-229-5333 
Fax: 815-229-0733 

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