The means test under § 707(b) is the dominant eligibility hurdle for consumer Chapter 7. This page covers how the test interacts with Chapter 7 specifically: who must take it, what passing means, and what happens when it's failed.
Who must take the means test
The means test applies to consumer debtors — those with primarily (more than 50%) consumer (non-business) debts. Business-debt-primary cases are exempt from the means test.
Consumer debtors are split into two groups by the median-income threshold:
Below-median income: presumed-abuse formula (Step 1) does not apply. The debtor passes Step 1 automatically. § 707(b)(3) totality-of-circumstances test (Step 2) still theoretically applies but is rarely invoked for below-median debtors.
Above-median income: the debtor must complete the full presumed-abuse formula on Form 122A-2. The result determines whether presumed abuse arises.
What "passing" means
A debtor "passes" the means test when:
Below median, OR
Above median but the formula calculation produces monthly disposable income below the presumption threshold
Passing means Chapter 7 is presumptively available. The U.S. Trustee Program reviews the calculation; if it agrees the debtor passed, the case proceeds without § 707(b)(2) issue.
What "failing" means
Failing the means test (presumed abuse arises) doesn't automatically dismiss the case. The debtor has options:
Rebut the presumption by showing "special circumstances" under § 707(b)(2)(B). Significant medical conditions, court-ordered payments not yet adjudicated, business closures with continuing obligations are common rebuttal grounds.
Convert to Chapter 13: the most common outcome. Converted cases use the means-test result to set the plan term (5 years instead of 3) and the plan-payment minimum.
Voluntarily dismiss the Chapter 7 and refile later when circumstances change.
Pre-filing means-test planning
Several factors affect the means-test result legitimately:
Timing: the test uses 6 months of income preceding the petition. Filing during a downturn (after job loss, after income reduction) produces different results than filing during a recent income spike.
Family size: dependents count; larger family = larger expense allowance.
Actual healthcare expenses: above the IRS national standard, actual healthcare costs can be deducted with documentation.
Tax withholding adjustment: bringing W-4 to match actual liability avoids inflated CMI from refund timing.
The means test's 6-month look-back period creates important timing decisions. See pre-bk planning for detail.