A debtor must enter income and expense information into the appropriate form (i.e., Form 22A or Form 22C) and then make calculations using the information entered. Some of the information needed to complete these forms, such as a debtor’s current monthly income, comes from the debtor’s own personal records. However, other information needed to complete the forms comes from the Census Bureau and the Internal Revenue Service (IRS). This Web site reproduces the Census Bureau and IRS Data necessary to complete Bankruptcy Forms 22A and 22C. The source data reproduced here is also available directly from the IRS and Census Bureau.

The significance of the Mean Test is that a Chapter 7 bankruptcy is not available; instead, only Chapter 13 with a restricted budget–or, in cases of high income and net worth, a Chapter 11.

If you earn more than the above amounts, California applies a means test to determine whether you are eligible to file for bankruptcy under Chapter 7. In the means test, the court applies a complex formula (subtracting costs of food/rent/mortgage etc, calculated under IRS guidelines) to determine whether your monthly Means Test (“MT”) income is less than $100.

• If your MT income is less than $100 per month, you can file under Chapter 7.
• If your MT income is between $100-$166 per month, the court will determine what percentage of your unsecured debt could be paid off using  MT income over a 5-year period and decide whether you should file under Chapter 7 or 13.
• If your MT income is more than $166 per month, you must file under Chapter 13.

Warning:  If you are self-employed, most trustees are requiring profit and loss statements for the last several months.  If you have none, ask your tax preparer help you.