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  • Form B122a 2

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Check the appropriate box as directed in Fill in this information to identify your case: Debtor 1 lines 40 or 42: First Name Debtor 2 Middle Name Last Name (Spouse, if filing) First Name Middle Name.

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To determine your Chapter 7 bankruptcy income limit, add the last six months of your gross income – this is what you earned before taxes and other deductions were taken out.

The first form, 122A-1, determines whether your income is below the median income in Alabama. You will need to give the court information about all sources of income, how much income you have, your tax filing status, and your marital status.

Form Number: B 122A-2. Category: Means Test Forms. Effective onApril 1, 2022. This is an Official Bankruptcy Form. Official Bankruptcy Forms are approved by the Judicial Conference and must be used under Bankruptcy Rule 9009.

The means test is calculated by comparing the debtor's average income for the past six months (current monthly income), annualized, to the median income for households of the same size in the debtor's state of residence.

Making a significant income won't stop you from filing for bankruptcy—but it might determine under which bankruptcy chapter—Chapter 7 or Chapter 13—you can wipe out qualifying debt. Your ability to file a particular chapter will depend on your income, and, in some cases, your deductible expenses.

If the debtor fails the means test, the debtor can only apply for Chapter 13 bankruptcy. The purpose of the means test is to see that if the debtor is abusing the bankruptcy system by filing Chapter 7 bankruptcy cases even though they could afford to pay at least some of their debts.

What Are the Three Ways to Pass the Chapter 7 Means Test? You're exempt. People who qualify automatically don't have to take the means test. You don't make a lot of money. You'll qualify if your gross income is within your state's Chapter 7 bankruptcy income limits. You make a lot, but you're still broke.

You pass the means test if your means test calculation shows a negative number or a number close to zero. This means you don't have disposable income left over after paying your monthly expenses and you're eligible to file for Chapter 7 bankruptcy relief.

Expenses That Will Help You Pass the Chapter 7 Means Test House, car, and other secured debt payments. ... Overdue taxes. ... Court-ordered payments and arrearages. ... Child care. ... Involuntary deductions. ... Health, disability, or term life insurance. ... Other healthcare expenses. ... Education for employment or a disabled child.

It takes into account your income, expenses and family size to determine whether you have enough disposable income to repay your debts. Although it was designed to restrict the number of debtors who can get their debts forgiven through a Chapter 7 bankruptcy, most people who take the means test pass it easily.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232