The Means Test
The means test was added to the Bankruptcy Code to create objective standards for determining which individuals are "worthy" of relief in Chapter 7. It applies only to individuals and only those individuals whose debt is primarily consumer debt.
The means test is calculated comparing the debtor's average income for the past six months annualized, to the median income for households of the same size in the debtor's state of residence. If the debtor's income is less than or equal to the state median income, the debtor "passes" the means test and may file Chapter 7. For Illinois, the following table applies.
Household Size | 1-Person | 2-Person | 3-Person | 4-Person |
Annualized Income | $46,355 | $60,073 | $69,910 | $81,097 |
If your income is more than the amounts above, monthly expenses are subtracted to determine monthly disposable income. This is a mix of actual expenses, National Standards and Local Standards for certain expenses.
If after subtracting expenses and your disposable income is less than $117 a month, you can still file Chapter 7.