By John G. Merna, Esq. | Last Reviewed: June 2026 | The Merna Law Group, P.C.

The Means Test was introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) to prevent higher-income filers from using Chapter 7 when they have the ability to repay at least a portion of their debts through a Chapter 13 plan. It sounds intimidating, but for most Virginia consumers — especially those who have lost a job, faced a medical crisis, or accumulated debt during a period of reduced income — passing the Means Test is straightforward.

Step 1: Compare Your Income to the Virginia Median

The first step is calculating your “current monthly income” (CMI) — the average of your gross income over the six calendar months before filing. This includes wages, self-employment income, rental income, and most other income sources. Social Security income is excluded.

Your annualized CMI is then compared to the Virginia median income for a household of your size. These figures are published by the U.S. Trustee Program and updated regularly. Current figures are available at justice.gov/ust (justice.gov/ust/means-testing).

If your annualized CMI is at or below the Virginia median for your household size, you pass the Means Test automatically and are presumed eligible for Chapter 7. The analysis stops here for the majority of Virginia filers.

Step 2: The Disposable Income Calculation (If Above Median)

If your income exceeds the Virginia median, you proceed to the second part of the Means Test — a detailed calculation of your allowable monthly expenses. These include:

• IRS National and Local Standard expenses (food, clothing, transportation, housing)
• Actual monthly secured debt payments (mortgage, car loan)
• Actual monthly priority debt payments (tax debts, domestic support)
• Certain other allowed expenses (health insurance, care for elderly or disabled family members)

After subtracting these expenses from your CMI, the result is your “monthly disposable income.” If this figure is low enough (currently below approximately $167/month, or below 25% of unsecured debt if above $100/month), you still pass and may file Chapter 7.

If your disposable income exceeds these thresholds, there is a presumption of abuse — meaning the trustee may move to dismiss your Chapter 7 case or convert it to Chapter 13. However, this presumption can be rebutted with evidence of special circumstances.

The Means Test Does Not Consider All Your Actual Expenses

This is one of the most frustrating aspects of the Means Test for Virginia filers. The IRS expense standards used in the calculation may be lower than your actual costs. For example, if you live in an area with high housing costs, the allowed housing expense may not reflect what you actually pay.

An experienced attorney knows which expenses can be claimed as “actual” versus which must use the IRS standards, and how to document special circumstances that allow you to rebut a presumption of abuse even if the raw numbers appear unfavorable.

Exemptions from the Means Test

Certain filers are exempt from the Means Test entirely:

• Disabled veterans whose debts were primarily incurred during active duty or while performing homeland defense activities
• Active duty National Guard and Reserve members during the duty period and for 540 days thereafter
• Filers whose debts are primarily non-consumer debts (business debts)

Does the Means Test Apply to Chapter 13?

Yes, but differently. In Chapter 13, the Means Test determines the required length of your repayment plan (3 years for below-median filers, 5 years for above-median filers) and the minimum amount of disposable income that must be paid to unsecured creditors through the plan. A skilled attorney can structure a Chapter 13 plan to minimize these payments within what the law allows.

How Merna Law Handles the Means Test

We calculate the Means Test for every client as part of our free initial consultation. We identify your six-month income average, compare it to current Virginia median figures, and — if needed — run the full expense calculation. We tell you clearly whether you qualify for Chapter 7 or whether Chapter 13 is the appropriate path. This analysis is always included in your consultation at no charge.

Frequently Asked Questions

What if I just lost my job — does my income still count for the Means Test?

Yes — the Means Test looks back six months. If you earned significant income in the past six months but recently became unemployed, that income is still counted. However, depending on timing, waiting to file may reduce your Means Test income. Your attorney can advise on optimal filing timing.

Is Social Security income included in the Means Test?

No. Social Security benefits are specifically excluded from the Means Test income calculation under 11 U.S.C. § 101(10A). This means many retirees and disability recipients who might otherwise appear above-median based on total income actually pass easily when Social Security is excluded.

What happens if I fail the Means Test?

Failing the Means Test for Chapter 7 does not mean you cannot file bankruptcy. It typically means Chapter 13 is more appropriate for your situation. Chapter 13 allows you to repay a portion of your debts over 3–5 years, often paying pennies on the dollar to unsecured creditors, while keeping your assets and stopping collection actions.

How often do the Virginia median income figures change?

The U.S. Trustee Program updates the median income figures periodically, typically several times per year. The figures applicable to your case are those in effect on the date you file. Your attorney will use the current figures from the official UST website.

Last reviewed by John G. Merna, Esq. | June 2026 | The Merna Law Group, P.C. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Licensed to practice in Virginia only. Means Test thresholds are subject to periodic updates; verify current figures at justice.gov/ust.