The means test consists of determining the debtor‘s average monthly income over the last six months and then subtracting the debtor‘s monthly expenses. The difference is the disposable income which is then used to calculate if the debtor can repay his/her creditors in a Chapter 13 bankruptcy.
In April of 2021 new means testing figures went into effect. These figures are determined by the IRS and US Census Bureau’s family income data. The US Trustee applied the updated data to all bankruptcy cases filed after April 1st of 2021.
| Household Size | Median Monthly Income | Median Annual Income |
| 1 | $5,244.83 | $62,938.00 |
| 2 | $6,952.92 | $83,435.00 |
| 3 | $7,727.92 | $92,735.00 |
| 4 | $8,877.50 | $106,530.00 |
| 5 | $9,627.50 | $115,530.00 |
| 6 | $10,377.50 | $124,530.00 |
| 7 | $11,127.50 | $133,530.00 |
| 8 | $11,877.50 | $142,530.00 |
If you are considering filing for bankruptcy or want to learn more about how bankruptcy can help you be debt free, contact your Houston bankruptcy attorney today.