Your financial situation may be desperate enough that you want to claim bankruptcy. However, this alone does not guarantee your eligibility to file. That is, specifically for Chapter 7 bankruptcy, you will have to prove to the New York State Bankruptcy Court that you undoubtedly pass the imposed means test. Without further ado, please continue reading to learn how to pass the means test and how an experienced Rockland County Chapter 7 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help compute your eligibility.
What should I know about the means test?
Simply put, the means test determines whether your income allows you to repay your debts. In other words, if this test shows that you can afford your debts, you may be ineligible for debt relief benefits granted in a Chapter 7 bankruptcy proceeding.
For the means test, you must first calculate your gross income over the six months immediately before your bankruptcy filing date. Then, multiply this number by two for an accurate estimation of your average annual income. You must take this number and compare it to your state’s median income for a family of your size. So if your income is below the state’s median, you may automatically pass this test. With that said, below are the median incomes in New York State for 2025:
- For a family of one: the median income is $68,795.
- For a family of two: the median income is $89,052.
- For a family of three: the median income is $108,589.
- For a family of four or more: the median income is $134,443, plus $11,100 per additional family member.
What can I do to pass the means test for Chapter 7 bankruptcy?
You may not automatically pass the New York State means test given your gross annual income. However, you may still fight to prove your eligibility for Chapter 7 bankruptcy by deducting your allowable expenses. This is to arrive at your average disposable income. And if you have a considerably low disposable income, you may establish that you cannot afford to pay off your debts without the help of a bankruptcy case. With that in mind, below are types of expenses that may help you pass the Chapter 7 means test:
- Your mortgage and car payments.
- Your nondischargeable, overdue tax debt.
- Your court-ordered payments and arrearage balances.
- The cost of your necessary child care (i.e., babysitting, day care, preschool, etc).
- The cost of your necessary care for an elderly, ill, or disabled family member in your household.
- Your involuntary wage deductions (i.e., retirement payouts, union dues, uniform purchases, etc).
- Your critical health insurance payments, life insurance payments, and out-of-pocket medical expenses.
If you need help with executing this, do not be afraid to reach out to a skilled Rockland County bankruptcy attorney. Our team at The Law Offices of Allen A. Kolber, Esq., P.C., is more than capable and eager to assist you with your legal proceedings.
