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You must determine the number of people living in the debtor's household (spouse, dependent children, other dependents, and even non-related individuals). Once you have the total countable income for the relevant six month period divide that by 6 to obtain the average current monthly income (even if that income is not currently available due to a change of circumstances such as a recent loss of employment). Multiply the result by 12 to compute the debtor's annual income. Compare that total to the U.S. Census Bureau's Median Family Income by Family Size (available on the Bankruptcy Court website, http://www.justice.gov/ust/eo/bapcpa/20120501/bci_data/housing_charts/irs_housing_charts_NY.htm ) The current (2026 NYS Median Family Income) by family size is:
* Add $11,100 for each individual in excess of 4. These numbers will be adjusted annually for inflation. https://www.justice.gov/ust/eo/bapcpa/20260715/bci_data/median_income_table.htm If the annual income is at or below the Median Income for the family size the means test will not apply and the debtor will be eligible to file a Chapter 7 case. • If the debtor's income has recently increased they may want to file quickly before it pushes the debtor out of the eligible category. • If the debtor's income has recently decreased it may be better to wait a few months to file until they reach an eligible income level |
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Sources
This information is general and is not legal advice. |
The Means Test
Part 2 of 4