When does a debtors income and expenses have to qualify under the means test?
If a debtor’s average gross family income 6 months before the bankruptcy filing exceeds the median for families in the debtor’s state, the debtor’s income and expenses must meet the means test. If the income and expenses do not meet the means test, the debtor must file a Chapter 13 bankruptcy rather than a Chapter 7 bankruptcy. The Bureau of the Census publishes charts with the median family income by state and American Bankruptcy Institute has more specific information on how median income is determined.
