The bankruptcy means test is a requirement for those attempting to file for Chapter 7 bankruptcy. This test determines whether you qualify for Chapter 7, which allows you to discharge most unsecured debts, or whether you have enough income to repay your creditors through a Chapter 13 repayment plan. The means test plays a critical role in your bankruptcy case. Understanding how it works can help you prepare and avoid costly mistakes.
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What Is the Bankruptcy Means Test?
The means test is a formula established by federal bankruptcy law to prevent high-income earners from filing for Chapter 7 bankruptcy unless they truly cannot afford to repay their debts. It compares your household income to the median income for a household of your size in Oklahoma.
If your income falls below the state median, you automatically pass the means test and qualify for Chapter 7. If it exceeds the median, you must complete a second part of the test, which analyzes your actual living expenses and disposable income.
Step 1: Comparing Your Income to the Oklahoma Median
The first step in the means test looks at your average monthly income over the past six months before filing. You must include income from all sources—wages, self-employment, rental income, alimony, and even household contributions from others.
The U.S. Trustee Program updates the Oklahoma median income levels regularly. As of May 15, 2025, the annual income levels are:
- 1-person household: $58,729
- 2-person household: $73,910
- 3-person household: $84,901
- 4-person household: $97,330
- For each additional person, add $11,000.
If your income varies by month, add the previous 6 months together and then divide that total by 6. If your average monthly income is below the median for your household size, you pass the means test and may file for Chapter 7.
Step 2: Calculating Your Disposable Income
If your income exceeds the median, you must complete Part 2 of the means test, which deducts allowed living expenses from your income to determine how much, if anything, you could repay creditors in a Chapter 13 plan.
The court uses IRS national and local standards for allowed expenses like housing, transportation, food, and healthcare. You can also deduct certain actual expenses, such as:
- Child support or alimony payments
- Daycare or education costs
- Certain taxes and insurance
- Secured debt payments (mortgage or car loans)
After calculating all deductions, if you have little to no disposable income, you may still qualify for Chapter 7. But if the court finds you have enough leftover income to repay a meaningful portion of your debts, you may be required to file under Chapter 13 instead.
Common Mistakes to Avoid in the Bankruptcy Means Test
Many filers make avoidable mistakes during the means test, such as:
- Underreporting income or including exempt income like Social Security
- Overstating deductions or claiming non-allowable expenses
- Failing to update income documents or using the wrong household size
- Using outdated median income figures
To avoid issues, work with a bankruptcy attorney who understands the nuances of the means test and how Oklahoma courts apply it.
Tulsa Bankruptcy Attorneys
We understand that filing for bankruptcy can be a difficult decision, and we guide individuals and families through every step of the process, including the critical means test analysis. Whether you qualify for Chapter 7 or need to explore Chapter 13, Tulsa County Lawyers Group, provides guidance that brings peace of mind. Get a free consultation from an estate planning attorney by calling 918.379.4864, or you can ask an online question by following this link.
