means test
In bankruptcy law, a means test is a calculation used to determine whether an individual debtor's Chapter 7 bankruptcy case is presumed to be an abuse of Chapter 7. Under 11 U.S.C. § 707(b), the means test applies when the debts are primarily consumer debts. The test is not a simple income limit and does not automatically make a debtor ineligible for Chapter 7.
An individual Chapter 7 debtor generally begins with Official Form 122A-1. The Bankruptcy Code generally measures current monthly income using the debtor's average monthly income during the six complete calendar months prior to the bankruptcy filing, subject to statutory inclusions and exclusions under 11 U.S.C. § 101(10A) and the Official Form instructions. It includes, for example, amounts regularly contributed by another person for household expenses, but excludes Social Security benefits and certain other payments, like some sources of victim and injury compensation.
[Last reviewed in October of 2026 by the Wex Definitions Team]
Wex