Do the IRS standards mean I cannot spend more than the allowance?

No. The standards govern what a bankruptcy form lets a filer deduct, not how you live. Official Forms 122A-2 and 122C-2 instruct filers to deduct the standard amount regardless of actual expense on the relevant lines, and to use actual amounts only where the form says so, such as Other Necessary Expenses and the later health care lines.

Why does housing and utilities depend on my county?

Because the IRS Local Standards are published that way. The USTP consolidated workbook lists a housing and utilities allowance for every county by FIPS code, split by household size and by whether a household has a mortgage. Transportation is published differently, by Census region and metropolitan area, with separate ownership and operating components.

Does this apply to Chapter 13 as well as Chapter 7?

Yes. Official Form 122C-2 sends chapter 13 filers to the same IRS National and Local Standards when calculating disposable income for a plan the court considers under 11 U.S.C. § 1325. The chapter 7 calculation under 11 U.S.C. § 707(b)(2) uses them too, for a different purpose: measuring whether a presumption of abuse arises.

Which figures apply if a case is filed next month?

The set tied to the filing date. The U.S. Trustee Program publishes a distinct page and workbook for each period — one for cases filed between April 1, 2026 and July 14, 2026, and another for cases filed on or after July 15, 2026 — and 11 U.S.C. § 707(b)(2)(A)(ii)(I) points to the standards in effect on the date of the order for relief.

Do Alabama and North Carolina work differently?

In one respect relevant here. The chapter 13 administrative expense multiplier used on Forms B122A and B122C is issued by the Bankruptcy Administrators in the six judicial districts in Alabama and North Carolina, and published district by district by the Administrative Office of the United States Courts. The IRS National and Local Standards themselves apply the same way.

Does a large gap mean bankruptcy is off the table?

It does not answer that question. A gap shows only that your spending differs from a published allowance for your county and household size, which is common. Which path fits depends on income over the 6 full months before filing, your debts, what property you own, and state exemption law — none of which this comparison sees.

Tier 2 tool

Monthly Cash-Flow Analyzer

Budget worksheet against published expense standards.

StateCounty (housing figures are per county)Household sizeMonthly take-home incomeMortgage or rentUtilities, maintenance, home insuranceFood, clothing, supplies, personal care, misc.Out-of-pocket health careVehicles in the householdVehicle paymentsFuel, insurance, maintenance, registrationPeople under 65People 65 and older

For most household categories the means test does not use your actual budget. Under 11 U.S.C. § 707(b)(2)(A)(ii)(I), monthly expenses are the amounts specified in the IRS National and Local Standards for the area where you reside, plus actual amounts for Other Necessary Expenses. This tool shows those published allowances beside your real spending — it decides nothing.

Key points

For most categories the means test uses published allowances rather than your actual monthly spending.
National Standards for food, clothing and out-of-pocket health care apply nationwide by household size, while Local Standards for housing, utilities and transportation vary by county and region.
11 U.S.C. § 707(b)(2)(A)(ii)(I) is the provision that makes those IRS figures the debtor's monthly expenses.
The U.S. Trustee Program republishes the figures for each filing-date period, so the table tied to when a case is filed is the one that governs.
A gap between an allowance and your budget is information, not an outcome; the presumption of abuse turns on the full form.

If you have looked at the means test forms, you have probably noticed something strange: for most categories they do not ask what you spend. They ask what the IRS allows a household your size in your county, and use that number instead. This page explains where those allowances come from, and what a gap between them and your real budget does and does not mean.

What does this tool compare?

The tool sets two numbers beside each other for every major expense category: what you actually spend in a month, and what the published standards allow for a household of your size in your county. Those allowances come from the IRS Collection Financial Standards, which the U.S. Trustee Program republishes in bankruptcy form for each filing-date period (USTP Means Testing — Cases Filed On or After July 15, 2026). National Standards cover food, clothing and other items and out-of-pocket health care. Local Standards cover housing and utilities, published county by county with FIPS codes, and transportation, published by Census region and metropolitan area (USTP Housing and Utilities Standards (2026-07-15 period)). The tool performs the lookup and the arithmetic that Official Forms 122A-2 and 122C-2 ask a filer to perform by hand. It files nothing, and it does not speak for a trustee or a judge.

What does the law actually say?

Two provisions carry the weight. For chapter 7, 11 U.S.C. § 707(b)(2)(A)(ii)(I) provides that the debtor's monthly expenses shall be the applicable monthly expense amounts specified under the National Standards and Local Standards, plus the debtor's actual monthly expenses for the categories the Internal Revenue Service specifies as Other Necessary Expenses, for the area in which the debtor resides, as in effect on the date of the order for relief. The same allowances flow into chapter 13, where Official Form 122C-2 instructs filers to use the IRS National and Local Standards to calculate disposable income for a plan the court considers under 11 U.S.C. § 1325. Income is measured on its own track: current monthly income under 11 U.S.C. § 101(10A) averages what you received during the 6 full months before filing, and the chapter 7 comparison in § 707(b)(2)(A)(i) multiplies the monthly surplus by 60.

Which standard governs which category
Expense category	Which standard	How it varies
Food, clothing and other items	IRS National Standards	Household size, nationwide
Out-of-pocket health care	IRS National Standards	Per person, split under 65 and 65 or older
Housing and utilities	IRS Local Standards	County (FIPS code), household size, mortgage or non-mortgage
Transportation ownership and operating costs	IRS Local Standards	Census region and metropolitan area, one car or two
Other Necessary Expenses	Actual amounts	Your own documented spending in the listed categories

How should you read the result?

Read it as a gap, not a grade. Official Forms 122A-2 and 122C-2 tell filers to deduct the standard amounts on the relevant lines regardless of actual expense, so a category where you spend less than the allowance still gets the allowance, and a category where you spend more is usually capped at it. Health care is the visible exception: the forms allow a per-person national amount and let a filer claim more later in the form when actual out-of-pocket costs run higher (U.S. Bankr. Ct. D. Alaska, The Forms Individuals and Married Couples Need to File Bankruptcy). A large gap in either direction is worth understanding before anyone fills in a form. It often reflects where you live, how many people you support, and whether you have a mortgage, rather than anything you did wrong. The USTP publishes a separate set of tables for each filing-date period, so the figures that apply are the ones tied to when a case is filed.

What does the result not tell you?

It does not tell you which chapter fits, whether a presumption of abuse arises, or what a trustee will say. The chapter 7 presumption in 11 U.S.C. § 707(b)(2) runs on a full form: income averaged over the same 6 full months, the standard deductions, secured and priority debt payments, and a chapter 13 administrative expense multiplier published by district (Administrative Office of the United States Courts, Administrative Expense Multipliers). A court may also dismiss a case for cause after notice and a hearing under 11 U.S.C. § 707(a), separate from any arithmetic. Nothing here touches what property you keep. Exemptions are decided by 11 U.S.C. § 522 and, in most states, by state law, which is a different analysis on a different form. Two comparisons that look similar on paper can end very differently. This page describes the federal framework only; it states no state's figures.

What should you do next?

Three things are worth doing before the numbers mean much. First, confirm which filing-date period applies, because the USTP publishes a separate set of tables for each one and the figures move between them. Second, identify your district and division, since the county lookup for housing and utilities and the chapter 13 administrative multiplier both depend on where the case would be filed. Third, take the comparison to someone who can look at the whole picture, including secured debts, priority claims and anything you own. State law is where the answer changes most. Median family income is published by state and household size, and property exemptions are set largely by state statute, so two households with identical spending in different states can face different questions. Our state pages carry those figures with their citations; this page deliberately does not.

Frequently asked questions

Do the IRS standards mean I cannot spend more than the allowance?: No. The standards govern what a bankruptcy form lets a filer deduct, not how you live. Official Forms 122A-2 and 122C-2 instruct filers to deduct the standard amount regardless of actual expense on the relevant lines, and to use actual amounts only where the form says so, such as Other Necessary Expenses and the later health care lines.
Why does housing and utilities depend on my county?: Because the IRS Local Standards are published that way. The USTP consolidated workbook lists a housing and utilities allowance for every county by FIPS code, split by household size and by whether a household has a mortgage. Transportation is published differently, by Census region and metropolitan area, with separate ownership and operating components.
Does this apply to Chapter 13 as well as Chapter 7?: Yes. Official Form 122C-2 sends chapter 13 filers to the same IRS National and Local Standards when calculating disposable income for a plan the court considers under 11 U.S.C. § 1325. The chapter 7 calculation under 11 U.S.C. § 707(b)(2) uses them too, for a different purpose: measuring whether a presumption of abuse arises.
Which figures apply if a case is filed next month?: The set tied to the filing date. The U.S. Trustee Program publishes a distinct page and workbook for each period — one for cases filed between April 1, 2026 and July 14, 2026, and another for cases filed on or after July 15, 2026 — and 11 U.S.C. § 707(b)(2)(A)(ii)(I) points to the standards in effect on the date of the order for relief.
Do Alabama and North Carolina work differently?: In one respect relevant here. The chapter 13 administrative expense multiplier used on Forms B122A and B122C is issued by the Bankruptcy Administrators in the six judicial districts in Alabama and North Carolina, and published district by district by the Administrative Office of the United States Courts. The IRS National and Local Standards themselves apply the same way.
Does a large gap mean bankruptcy is off the table?: It does not answer that question. A gap shows only that your spending differs from a published allowance for your county and household size, which is common. Which path fits depends on income over the 6 full months before filing, your debts, what property you own, and state exemption law — none of which this comparison sees.

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. § 1325 — Confirmation of plan · official source
11 U.S.C. § 101 — Definitions · official source
11 U.S.C. § 522 — Exemptions · official source
USTP Means Testing — Cases Filed On or After July 15, 2026
USTP Means Testing — Cases Filed Between April 1, 2026 and July 14, 2026, Inclusive
USTP Housing and Utilities Standards (2026-07-15 period)
USTP Transportation Standards (2026-07-15 period)
Administrative Office of the United States Courts, Administrative Expense Multipliers
U.S. Bankr. Ct. D. Alaska, The Forms Individuals and Married Couples Need to File Bankruptcy
Bankr. E.D. La. official guidance — Chapter 13 Form Packet

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Sources verified August 7, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

By state

Turn this into a plan for your exact situation, state, and court.

See My Debt Relief Options→