Statutory framework
The means test, codified at 11 U.S.C. § 707(b)(2), was added to the Bankruptcy Code by BAPCPA in 2005. It establishes a presumption of abuse for individual Chapter 7 cases in which the debtor's current monthly income, when adjusted by allowed expense deductions, exceeds statutory thresholds.
The first step compares the debtor's annualized current monthly income (CMI) to the median family income for the debtor's state and household size. Median income is calculated at the state level, not the district level — cases filed in either the Western District of Missouri or the Eastern District of Missouri use the same Missouri median income figure for their household size. If CMI is at or below the state median, the means test is generally satisfied and the case proceeds without further calculation.
State median income figures — Missouri
Median income figures are published by the U.S. Trustee Program (USTP) and refreshed for cases filed on or after each effective date. The figures applicable to a particular case depend on the petition filing date.
The official Missouri figures are posted on the USTP Census Bureau Median Family Income page. Always retrieve the figures effective for the petition filing date directly from the USTP table.
| Household size | Source |
|---|---|
| 1 person | Look up "Missouri" on the USTP median income table for the petition filing date |
| 2 person | Same table |
| 3 person | Same table |
| 4 person | Same table |
| 5+ person | USTP adds an additional fixed dollar amount per person above 4. Verify on the table. |
For independent verification, the U.S. Census Bureau publishes Missouri median household income via the American Community Survey 1-year and 5-year tables. ACS Table B19013 is the canonical Census source. The USTP reformulates the Census data into per-household-size figures for means-test use.
The full means-test calculation (Form 122A-2)
Above-median debtors must complete the deduction calculation. The principal categories are:
- National Standards for food, clothing, household supplies, personal care, and miscellaneous (IRS National Standards table)
- Local Standards for housing/utilities and transportation. The IRS Collection Financial Standards categorize Missouri counties into Kansas City MSA, Springfield MSA, St. Louis MSA, and the residual statewide rate; W.D. Mo. cases generally use the Kansas City MSA or Springfield MSA tables for the western and southwestern counties, and the statewide non-MSA rate elsewhere.
- Other necessary expenses (taxes, mandatory payroll deductions, term life insurance, court-ordered payments, child care, health care, telecommunications)
- Deductions for debt payment (secured debt average monthly payments, priority debt, administrative expenses)
If after deductions the debtor's monthly disposable income exceeds the statutory thresholds, the presumption of abuse arises under § 707(b)(2)(A)(i).
Special rules and exceptions
- Disabled veterans — § 707(b)(2)(D)(ii): Means test does not apply if the debtor is a disabled veteran whose indebtedness occurred primarily during active duty or while performing homeland defense activity.
- Reservists and National Guard — § 707(b)(2)(D)(i): Temporary exclusion while on qualifying active duty and for 540 days after release.
- Non-consumer debt — § 707(b)(1): The means test only applies to cases in which the debts are primarily consumer debts. Cases dominated by business debt are not subject to the means test.
Chapter 13 use of the means test (Form 122C)
For Chapter 13 cases, an analogous calculation on Form 122C determines the applicable commitment period (3 years for below-median debtors, 5 years for above-median) and the projected disposable income that must be paid into the plan under Hamilton v. Lanning, 560 U.S. 505 (2010).