The bankruptcy means test has been updated once again as of April 1, 2024. The means test looks at gross income for a household in the six months before filing bankruptcy. If you are above the threshold, you are required to do a five-year chapter 13 bankruptcy repayment, with all disposable monthly income being paid to your unsecured creditors. The test is normally updated once or twice per year, and usually the amount goes up. However, in November 2023, the amount decreased. In the latest update, the threshold increased across the board, which should make it easier for some debtors to qualify for chapter 7 bankruptcy.
The amounts listed below are for gross income, that is money earned before taxes and any deductions from your paycheck. Household size is determined by spouses and dependent children living in the home. Keep in mind, even if you are the only spouse filing, the bankruptcy court will look at both incomes in determining the test. The amounts listed at the maximum gross monthly household income to be below the means test threshold.
Household of 1: $5,577.00
Household of 2: $6,798.00
Household of 3: $8,598.00
Household of 4: $10,488.00
Household of 5: $11,313.00
Household of 6: $12,138.00
Household of 7: $12,963.00
Household of 8: $13,788.00
Call us at 412-414-9366 if you have any questions about whether or not you qualify for chapter 7 bankruptcy under the means test, and if not what a repayment may look like in a chapter 13. I would be happy to discuss your situation and see if I can help.