Comparing Your Income to the State Median in Bankruptcy

How does the median income comparison actually work?

The comparison has three inputs: your income, your state, and your household size. You start by calculating current monthly income on Official Form 122A-1. The Chapter 7 form packet used by the Eastern District of Louisiana instructs filers to "fill in the average monthly income that you received from all sources, derived during the 6 full months before you file this bankruptcy case," and to divide by six if the amount varied. That monthly figure is annualized and set against the published median for a household of your size in your state. Under 11 U.S.C. § 707(b)(7), income at or below that median means the presumption of abuse under § 707(b)(2) does not apply, and the longer calculation form is not required. Above the median, the second form comes into play. Nothing here is discretionary — it is a table lookup and a comparison.

• Average all income received in the six full months before filing, then divide by six.
• Compare the annualized result to the published median for your state and household size.
• At or below: the § 707(b)(2) calculation is not required.
• Above: complete the means test calculation form (Official Form 122A-2).

What changes whether you land above or below the line?

Three things move the result, and none of them are opinions. Household size is the largest lever, because the published medians rise with each additional person. Your filing date matters, because the six-month lookback window shifts with it — a job loss four months ago weighs differently in a case filed today than in one filed next quarter. And marital status affects which columns you complete: Form 122A-1 asks whether you are unmarried, married and filing jointly, or married with a spouse who is not filing, and directs some non-filing spouses' income into the calculation as well. The form allows an exception where spouses are legally separated or living apart for reasons that do not include evading the means test requirements, and that declaration is made under penalty of perjury. Small changes in these inputs can flip the comparison, which is why the six-month figure is worth calculating carefully rather than estimating.

What does federal law actually say about this?

The controlling provision is 11 U.S.C. § 707, the section governing dismissal of a Chapter 7 case or conversion to Chapter 11 or 13. Section 707(b)(1) lets the court dismiss a case filed by an individual whose debts are primarily consumer debts, or convert it with the debtor's consent, if granting relief would be an abuse of Chapter 7. Section 707(b)(2)(A)(i) then sets out the presumption: abuse is presumed if current monthly income, reduced by specified allowed expense amounts and multiplied by 60, is not less than the lesser of 25 percent of nonpriority unsecured claims or $6,000, whichever is greater, or $10,000. Those figures are adjusted periodically by notice of the Judicial Conference. The median income comparison in § 707(b)(7) is the gate that decides whether that presumption calculation applies to you at all. Note also that 11 U.S.C. § 527 requires that current monthly income and the § 707(b)(2) amounts be stated after reasonable inquiry.

• § 707(b)(1) — the court may dismiss or convert a consumer case for abuse.
• § 707(b)(2)(A)(i) — the arithmetic that creates a presumption of abuse.
• § 707(b)(7) — the median income comparison that gates that arithmetic.
• § 527 — income figures must be stated after reasonable inquiry.

Do state and local rules change the median comparison?

The rule itself is federal and uniform, but the number you compare against is state-specific, and districts have local rules about where that number comes from. The Eastern District of Missouri's local rule is explicit: in determining median family income for purposes of § 707(b)(7) and completion of the means test form, "absent evidence to the contrary, the median family income will be those amounts established by the United States Bureau of the Census and made available on the Bankruptcy Court's web site as provided by the Office of the United States Trustee." Courts in Indiana point filers to the U.S. Department of Justice website for the same figures. Local rules in New Hampshire and the Eastern District of Michigan restate the federal requirement: file the statement of current monthly income, and if that income exceeds the median for your state and household size, file the calculation information required by § 707(b) as well. Your state hub page carries state-specific detail.

• The comparison rule is federal; the median figure is state and household-size specific.
• Local rules commonly designate the U.S. Trustee's published figures as the source.
• Alabama and North Carolina use bankruptcy administrators rather than U.S. Trustees, and their forms reference a separate administrative expense multiplier.

What does this look like in a real filing?

In practice, this is a sequence of forms rather than a moment of decision. Every individual Chapter 7 filer completes Official Form 122A-1, the Statement of Current Monthly Income. The Southern District of Indiana's guidance states that this form is required for all Chapter 7 individual debtors and must be filed with the petition or within 14 days of filing. If the income figure on that form exceeds the applicable median, Form 122A-2, the Chapter 7 Means Test Calculation, follows. On that form, allowed expenses under the IRS National and Local Standards are deducted, and the remaining figure is measured against the § 707(b)(2) thresholds. The form itself directs you to check either "There is no presumption of abuse" or "There is a presumption of abuse" on page one. A separate supplement, Form 122A-1Supp, exists for filers claiming an exemption based on non-consumer debts or qualifying military service.

What documents and information do you need to gather?

You need six full months of income records, and "all sources" is broader than most people expect. Form 122A-1 asks for gross wages, salary, tips, bonuses, overtime and commissions before payroll deductions, alimony and maintenance payments, and all amounts from any source regularly paid for household expenses. If your income varied, you add the six months and divide by six. Pay stubs, bank statements, benefit letters and self-employment records are the usual evidence. Districts also expect supporting documentation for the expense side if you reach the second form — the Eastern District of Missouri's local rule requires debtors to provide documentation supporting means test expenses fourteen days before the § 341 meeting of creditors. Accuracy is not optional here: 11 U.S.C. § 527 provides that these figures must be stated after reasonable inquiry, and that a case may be audited.

• Six full months of pay stubs or income records preceding the filing month.
• Records for any non-wage income regularly received, including contributions toward household expenses.
• Records for a spouse where the form directs their income to be included.
• Expense documentation if the second form applies in your district.

What should you ask a bankruptcy lawyer about this?

The questions worth asking are the ones the published table cannot answer. The District of Nebraska's pro se guide lists what a lawyer can do, including advising whether to file a petition, under which chapter to file, and whether your debts can be discharged. The Eastern District of Michigan's guide is blunter: bankruptcy proceedings are complex, results have long-term consequences, and the court strongly encourages individuals to seek competent counsel. Court staff and judges are barred by statute from giving legal advice, so the clerk cannot tell you how to count a household member or handle an irregular income. Bring the arithmetic with you and ask about the judgment calls layered on top of it.

• Who counts in my household size for the median comparison?
• How should irregular, seasonal or recently changed income be averaged across six months?
• Does my non-filing spouse's income belong in the calculation given how we live?
• If I land above the median, what does the expense side of Form 122A-2 look like for me?
• Would Chapter 13 fit my situation better regardless of where the median comparison lands?

Does being above the median close off Chapter 7?

No. Being above the median moves you to the second form; it does not end the inquiry. On Form 122A-2, allowed expense amounts under the IRS National and Local Standards, plus actual amounts for Other Necessary Expenses, are subtracted from current monthly income. What remains is compared to the thresholds in § 707(b)(2)(A)(i). Filers who reach a presumption of abuse may still describe special circumstances under § 707(b)(2)(B) that justify additional expenses or income adjustments where there is no reasonable alternative, with documentation given to the case trustee. Even where a presumption stands, the Middle District of Florida's procedure notes that the United States Trustee reviews the filing and may file a motion to dismiss, a motion to convert, or a statement explaining why neither is appropriate. Many above-median households explore Chapter 13 instead, where income is applied to a plan under 11 U.S.C. § 1322.

Frequently asked questions

Is the median comparison based on my current paycheck?

No. It is based on current monthly income, which Form 122A-1 defines as the average monthly income received from all sources during the six full months before filing. A raise or a job loss last month barely moves that average. This is why a filing date can change the outcome — moving the petition forward or back shifts which six months get averaged.

Where do the median income figures come from?

From figures published by the U.S. Trustee Program and posted by the courts. The Eastern District of Missouri's local rule provides that, absent evidence to the contrary, median family income will be the amounts established by the U.S. Bureau of the Census and made available on the court's website as provided by the U.S. Trustee's office. Indiana's court pages direct filers to the Department of Justice site for the same data.

Does my spouse's income count if they are not filing with me?

Often yes. Form 122A-1 directs married filers living in the same household and not legally separated to complete both income columns, even when only one spouse files. The form allows an exception for spouses living separately or legally separated, declared under penalty of perjury, where living apart is not for the purpose of evading the means test requirements.

What happens if my income is above the median?

You complete Official Form 122A-2, the Chapter 7 Means Test Calculation. Allowed expenses under the IRS National and Local Standards and Other Necessary Expenses are deducted from current monthly income, and the remaining amount is measured against the § 707(b)(2)(A)(i) thresholds. The form ends by checking whether a presumption of abuse arises. Special circumstances under § 707(b)(2)(B) may be raised.

Does the median comparison apply in Chapter 13 too?

Yes, in a different role. Official Form 122C-1 reports current monthly income and determines whether it is at or below the median for households of the same size in your state, which sets the commitment period for plan payments. Where income is at or below the median, the second Chapter 13 form is not required. Chapter 13 plan contents are governed by 11 U.S.C. § 1322.

Does the filing fee change depending on which side of the median I fall on?

No. The fees are set by statute and the Judiciary's fee schedule regardless of income. The Chapter 7 filing fee is $245 (28 U.S.C. § 1930(a)(1)(A), (f)(1)), plus a $78 administrative fee and a $15 trustee surcharge. Chapter 13 carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) plus the $78 administrative fee. Fee waiver and installment options are handled separately.

Are debts other than consumer debts treated differently?

Yes. The § 707(b) abuse analysis applies to an individual debtor whose debts are primarily consumer debts, defined in 11 U.S.C. § 101(8) as incurred primarily for a personal, family or household purpose. Form 122A-1Supp asks that question first, and a filer whose debts are not primarily consumer debts may check that no presumption of abuse arises.

Sources

• 11 U.S.C. § 707 — Dismissal of a case or conversion to a case under chapter 11 or 13 · official source
• 11 U.S.C. § 527 — Disclosures · official source
• 11 U.S.C. § 101 — Definitions · official source
• 11 U.S.C. § 1322 — Contents of plan · official source
• E.D. Mo. L.R. 1007-1 — Means Testing and Current Income Calculations
• IBR 1007-11 — Lists, Schedules, Statements, and Other Documents; Time Limits
• E.D. Mich. LBR 1007-4 — Lists, Schedules, Statements and Other Documents; Time Limits
• Bankr. E.D. La. official guidance — Chapter 7 Form Packet
• Bankr. S.D. Ind. official page — Chapter 7 Statement of Current Monthly Income
• Bankr. S.D. Ind. official page — Chapter 7 Means Test Calculation
• Bankr. M.D. Fla. Procedure Manual — Presumption of Abuse - Chapter 7
• Bankr. S.D. Iowa official guidance — Instructions - Bankruptcy Forms for Individuals
• Pro Se Guide — U.S. Bankruptcy Court, District of Nebraska
• Bankr. E.D. Mich. official guidance — A Guide for Pro Se Filers
• Bankr. M.D. La. filing packet — Ch7_Vol_Petition_ Package-2026.pdf
• 28 U.S.C. § 1930(a)(1)(A), (f)(1)
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9

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• The means test, explained
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