Means Test for High-Value Chapter 13 Clients 2026
The means test determines whether someone qualifies for Chapter 7 or gets routed into Chapter 13. What gets missed is that the same calculation sets the payment floor for above-median Chapter 13 debtors. Quote the case without running feasibility math first and you risk a trustee objection at month nine because the debtor's Schedule J leaves no room for the plan payment. The fix is treating the means test as the first gate in a multi-step screen: calculate current monthly income from the six-month lookback, compare it against the 2026 income limits, run Form 122C-2 deductions, project the required plan payment, check it against Schedule I and J budget capacity, and confirm the case clears the feasibility threshold.
What the Bankruptcy Means Test Actually Measures (And Why It Matters for Chapter 13 Cases)
The means test compares a debtor's average household income over the prior six months, annualized, against the state median for their household size. The U.S. Trustee Program publishes the income figures and allowable expense standards feeding Form 122A (Chapter 7) and Form 122C (Chapter 13).
For Chapter 13, the result sets the case floor:
- Below-median debtors get a 36-month commitment and use Schedule I/J for disposable income.
- Above-median debtors get 60 months and calculate projected disposable income under Form 122C-2's deduction framework.
- Unsecured creditors must receive at least what they would in a hypothetical Chapter 7 liquidation.
Run the numbers before the retainer conversation.
How to Calculate Current Monthly Income Using the Six-Month Lookback
The lookback window is the six full calendar months before the filing month. Pull gross income from every source: wages, self-employment net receipts, rental income, unemployment, regular contributions from non-filing household members, pension distributions. Social Security is excluded. Total it, divide by six, multiply by twelve. That annualized figure gets compared to the state median.
Clients arrive with W-2 totals or bank-deposit summaries that fall outside the window. Ask for every paystub inside those six months before you quote a strategy.
2026 Median Income Limits by State and Household Size
The U.S. Trustee Program refreshes median figures twice yearly. Current numbers apply to cases filed on or after April 1, 2026.
| Household Size | Texas | Florida | California | Georgia |
|---|---|---|---|---|
| 1 | ~$65,000 | ~$66,000 | ~$78,000 | ~$63,000 |
| 2 | ~$84,000 | ~$82,000 | ~$102,000 | ~$80,000 |
| 4 | ~$112,000 | ~$103,000 | ~$135,000+ | ~$104,000 |
Chapter 7 vs. Chapter 13: What the Means Test Result Tells You About Case Strategy
The fork shows up the moment you finish the median comparison. Below-median routes toward Chapter 7: faster discharge, lower fee, shorter engagement. Above-median runs the full Form 122A-2, or files Chapter 13 when the presumption of abuse fires.
Chapter 13 has no income ceiling. A surgeon earning $400,000 can file it; the means test only determines plan length.
The Disposable Income Calculation for Above-Median Debtors
Once a client clears the median, Form 122C-2 governs. Start with current monthly income, then subtract IRS National Standards, Local Standards, secured debt payments, priority debts, and plus deductions like court-ordered payments and term life insurance.
The result is monthly disposable income. Use it as a triage signal:
- Negative or near-zero: presumption of abuse may not apply, Chapter 7 stays viable.
- Modest positive: Chapter 13 with a manageable plan payment.
- Several thousand monthly: feasibility risk.
Chapter 13 Plan Length and Payment Requirements: How the Means Test Sets the Floor
For above-median debtors, monthly disposable income from Form 122C-2 sets the statutory floor for unsecured creditor payments over 60 months. That stack is your case profitability check. Before drafting, confirm the client's budget can carry:
The Three Confirmation Tests Every Chapter 13 Plan Must Pass
Confirmation under Section 1325 turns on three independent tests. Miss one and the trustee objects, the judge denies, and you have done five months of work for a dismissal.
- Feasibility (1325(a)(6))
- Best interest test (1325(a)(4))
- Projected disposable income (1325(b))
Common Means Test Mistakes That Waste Attorney Time and Client Money
The errors that kill cases mid-stream trace back to intake math nobody pressure-tested.
- Household size miscount
- Including Social Security in current monthly income
- Using last month's pay instead of the six-month lookback
- Ignoring irregular income
- Skipping the exemption check
How to Screen Chapter 13 Clients for Plan Feasibility Before You File
Build a one-page intake screen that runs the math in order:
- Means test result
- Required monthly plan payment
- Schedule I minus Schedule J
- Delta between step 2 and step 3.
If the delta is negative or razor-thin, the case will not make it five years.
Glade AI: Automated Means Test Calculation and Chapter 13 Plan Feasibility Analysis in One System
The screening math runs on autopilot inside Glade. Clients upload paystubs through the portal, AI extracts line items into the Income Organizer. Open any Chapter 13 questionnaire and the Plan Calculator loads pre-populated.
April 1, 2026 U.S. Trustee median figures are loaded in production.