The means test determines whether you can file Chapter 7 bankruptcy. Your income is compared to the Minnesota median income for your household size. Here is how it works for Minneapolis residents filing in the D. Minn.
The means test was introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Its purpose is to determine whether a debtor's Chapter 7 filing constitutes an "abuse" of the bankruptcy system based on income.
The test works in two parts:
Minneapolis residents file in the District of Minnesota (D. Minn., 8th Circuit). The Minnesota median income thresholds apply to all filers in this district.
| Household Size | Annual Median Income | Monthly Equivalent |
|---|---|---|
| 1 person | $62,458 | $5,205 |
| 2 persons | $81,372 | $6,781 |
| 3 persons | $97,586 | $8,132 |
| 4 persons | $116,947 | $9,746 |
| Each additional person | Add approximately $9,900 | |
Minneapolis filers are in the D. Minn. Courthouse: 316 N Robert St, Suite 100, St. Paul MN 55101. Minnesota's median income is higher than the national average, meaning more residents may pass the means test.
1Calculate your current monthly income (CMI)
Add up all income from all sources for the six full calendar months before your filing date. Divide by six to get your average monthly income. Multiply by 12 to get your annualized figure. Sources include wages, salary, tips, bonuses, overtime, self-employment income, rental income, pension, disability (non-Social Security), alimony received, and any other regular income.
2Determine your household size
Count everyone who lives in your household and depends on your income for support. This typically includes yourself, your spouse (even if not filing jointly), and dependent children.
3Compare to Minnesota median income
Compare your annualized CMI to the Minnesota median income for your household size (see table above). If your income is at or below the median, you pass the means test and qualify for Chapter 7 automatically.
4If above median: Calculate allowable deductions
If your income exceeds the median, you proceed to Part 2. You deduct IRS-approved living expenses, actual secured debt payments (mortgage, car loans), priority debts, and certain other allowed expenses. These deductions are partly standardized (IRS Local Standards for the Minneapolis area) and partly based on your actual expenses.
5Calculate disposable income
Subtract your total allowed deductions from your CMI. Multiply the remaining monthly disposable income by 60. If the result is less than $9,075, you pass the means test. If it is more than $15,150, you fail. Between those amounts, further analysis is needed.
6File the appropriate form
The means test is filed on Official Form 122A-1 and, if needed, Form 122A-2. Your attorney will prepare these forms as part of your petition filed with the D. Minn.
Failing the means test does not mean you cannot file bankruptcy. You have several options:
Minnesota has its own state exemption system. Filers in Minnesota must use state exemptions and cannot elect federal exemptions. Key Minnesota exemptions that affect your bankruptcy planning:
While exemptions do not directly change the means test calculation, they determine what property you can protect -- which affects whether Chapter 7 is practical for your situation. Minnesota's generous homestead exemption ($450,000) and solid vehicle exemption ($5,000) make Chapter 7 viable for many Minneapolis residents. See all Minnesota exemptions →
The means test compares your income to the Minnesota median. If below, you qualify for Chapter 7 automatically. If above, a second calculation factors in allowed expenses. Learn more about the means test.
1-person household $62,458, 2-person $81,372, 3-person $97,586, 4-person $116,947. Add approximately $9,900 for each additional household member.
You can file Chapter 13 instead (no means test), wait until income drops, challenge with special circumstances, or re-examine allowable deductions.
No. However, your income level determines whether your Chapter 13 plan lasts 3 years (below median) or 5 years (above median).
All income from all sources over the six full calendar months before filing. Social Security benefits are excluded from the initial median income comparison.
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.
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