What is a B 122A-2 – Chapter 7 Means Test Calculation?

Jurisdiction: USA — Federal

What is a B 122A-2 – Chapter 7 Means Test Calculation?

B 122A-2 is the official Chapter 7 Means Test Calculation form. You use it to show whether a presumption of abuse applies in your Chapter 7 case. The form calculates allowed expense deductions and compares them to your current monthly income. The result is your monthly disposable income for means test purposes. The court and trustee use this figure to decide if your case can stay in Chapter 7.

Who typically uses this form?

Individual debtors with primarily consumer debts whose income is above the applicable median. If you filed jointly, both spouses complete one combined form. If your income falls under the median, or you qualify for a limited exception, you may not need this form. In most other consumer cases, you do.

Why might you need this form?

Chapter 7 wipes out most unsecured debts. The means test guards against abuse by higher‑income filers. If your income is high, you must show that your allowed expenses and debt payments leave little disposable income. The form standardizes this process. It applies fixed expense allowances and specific deductions. It then determines if a presumption of abuse arises. If the presumption arises, you can try to rebut it with special circumstances. If it does not, you clear a key eligibility step.

You typically use this form when you earn a steady paycheck above the median for your household size. You might also have a mortgage, car loans, support payments, or other costs. The form allows you to claim standard and actual expenses. It also spreads secured and priority debts over 60 months to show their monthly impact. The calculation aims to reflect your ability to repay unsecured debts under a standardized framework.

Here are common scenarios. You and your spouse file together, both employed, with two children. Your combined income is over the median. You pay a mortgage, two car loans, health insurance, and child care. You complete B 122A-2 to see if your expenses bring your means test disposable income below the threshold. Or you recently experienced reduced hours, but your six‑month average looks high. You use the form’s allowed deductions to show little remaining income. Or you have serious ongoing medical costs. You document them to increase allowed deductions. In each case, this form is how you demonstrate Chapter 7 eligibility under the means test.

When Would You Use a B 122A-2 – Chapter 7 Means Test Calculation?

You use B 122A-2 after you determine that the means test applies to you. If you are above the median income for your household size, you typically must file it. You also use it when your income is close to the median but ends up over the line after the six‑month average is calculated. It is the second step in the Chapter 7 means test process. The first step screens for applicability. This second step performs the full calculation.

Practical examples help. You are a salaried employee with overtime. Your last six months include high overtime, pushing your average up. You complete B 122A-2 to claim standard expenses and actual costs, like taxes and insurance. The calculation may show that your overtime does not create meaningful disposable income. Or you are a married couple where only one spouse files. You still must include the non‑filing spouse’s income with a marital adjustment for costs that do not benefit you. B 122A-2walks you through those adjustments.

Another example: you are self‑employed with steady consumer spending and a home mortgage. Your income is above the median when averaged over six months. You use B 122A-2 to deduct net business expenses, standardized household expenses, and secured debt payments. The form helps show whether your actual financial capacity supports Chapter 7 relief. Or you retired mid‑year, and your recent pay stubs reflect a higher income than your current situation. You still must complete the form using the six‑month average. You then use allowed deductions and possibly special circumstances to reflect your present reality.

Typical users include individual consumers with jobs, gig workers with 1099 income, retirees with pensions, and married couples filing jointly. Sole proprietors also use it if their debts are primarily consumer in nature. If most of your debts are business debts, you may not need the means test at all. But if your debts are mainly consumer, this form is standard. Landlords and tenants do not use this form in their business roles. They may use it if they are individual debtors with consumer debts. The common thread is individual Chapter 7 filers who must prove they pass the means test.

Legal Characteristics of the B 122A-2 – Chapter 7 Means Test Calculation

B 122A-2 is a sworn statement filed in your bankruptcy case. You sign it under penalty of perjury. Its contents are legally significant. The calculation determines whether a presumption of abuse arises under Chapter 7. If the presumption applies and you cannot rebut it, your case may be dismissed or converted to Chapter 13. Because the form affects your eligibility, accuracy is critical.

What ensures enforceability?

The form uses standardized expense allowances and defined categories set by law. It applies local and national standards for food, clothing, housing, and transportation. It permits additional actual expenses only in specific categories. It spreads secured and priority debts over a 60‑month horizon. These rules create uniformity and reduce discretion. The trustee and the U.S. Trustee review your entries and documents. They check math, eligibility, and reasonableness. If needed, they can object, request records, or seek dismissal.

General legal considerations apply. You must include all income received during the six full months before filing, divided by six. You must count the non‑filing spouse’s income, subject to the marital adjustment. You may not double‑count deductions already reflected in standard allowances. You must use the household size used for the means test, based on those you support or share expenses with. If you claim special circumstances, you must provide detailed explanations and proof. Claims must be necessary and reasonable. Common examples include serious medical conditions or a call to active duty.

False or incomplete information can cause serious problems. The trustee can seek sanctions, dismissal, or even referral for investigation. Inconsistent entries can also hurt your credibility. Keep your answers consistent with other filings, such as Schedules I and J and your pay advices. The court treats the form as evidence of your eligibility. Treat it with the same care you give your petition and schedules.

How to Fill Out a B 122A-2 – Chapter 7 Means Test Calculation

Follow these steps to complete the form accurately.

1) Gather your documents.

• Pay stubs or income records for the last six full months.
• Profit and loss statements if self‑employed.
• Recent tax returns and W‑2s for reference.
• Mortgage statements and car loan statements showing balances, interest, and monthly payments.
• Proof of arrears on secured debts, if any.
• Statements for health, life, and disability insurance premiums.
• Child support or alimony orders and recent payment records.
• Proof of child care, elder care, and special education costs.
• Documentation of union dues and mandatory employment costs.
• Retirement loan statements and mandatory retirement deduction records.
• Medical bills and pharmacy statements if claiming extra medical costs.
• Evidence for special circumstances, if you plan to claim them.

2) Complete the header.

• Enter your name exactly as on your petition. If joint, list both names.
• Add the case number if you have one. If not, leave it blank.
• Check the box for a joint case if you filed together.

3) Confirm you must file B 122A-2.

• If you are above the median or did not qualify for an exception, proceed.
• If you qualified for an exception at the screening step, you may not need this form.

4) Identify household size and marital status for the form.

• Count yourself, your spouse (if living with you), your dependents, and others you support.
• Use a reasonable household size consistent with your expenses.
• If your spouse is not filing, you will include their income with adjustments later.

5) Enter your current monthly income amount from the screening step.

• The form uses your six‑month average monthly income as its base.
• Use the number determined from your income calculation, including your spouse’s income if required.

6) Claim National Standards allowances.

• Enter the standard amount for food, clothing, and other items for your household size.
• Enter the standard amount for out‑of‑pocket health care per person, then total it.
• Do not add actual routine grocery or clothing costs; use the standard numbers.
• If you have higher medical costs than the standard, you will claim the extra later with proof.

7) Claim Local Standards for housing and utilities.

• Break out non‑mortgage expenses such as utilities, insurance, and maintenance.
• Enter the standard non‑mortgage allowance for your county and household size.
• For mortgage or rent, enter the standard housing allowance for your area.
• Subtract your average monthly mortgage or rent to find any remaining allowance.
• If your mortgage exceeds the standard, you may still claim the secured payment separately.

8) Claim Local Standards for transportation.

• Claim operating costs for the number of vehicles you own or lease.
• If you do not own a vehicle, you may claim a public transportation standard.
• For ownership costs, enter the standard allowance for each vehicle with a loan or lease.
• If your car is paid off, do not claim ownership costs for it.
• You will also list actual secured car payments in the secured debt section.

9) Enter other necessary expense deductions.

• Taxes: enter average monthly federal, state, and local income taxes. Include FICA and Medicare.
• Involuntary deductions: list union dues and mandatory retirement contributions required by your job.
• Life insurance: list term life premiums for you and dependents.
• Court‑ordered payments: include child support and alimony you pay.
• Education for employment: include costs required for your job, with documentation.
• Child care: enter daycare, after‑school care, and babysitting needed for work.
• Health insurance and HSA: enter your premiums and HSA contributions if applicable.
• Telecommunication services: include necessary services not in your standard plan, if required for work or health.
• Care of the elderly or disabled: include costs for dependents or household members who need care.
• Continued charitable contributions: include ongoing donations within allowed limits.
• 401(k) loan repayments: list current monthly repayments to retirement plan loans.
• Additional medical expenses: enter necessary costs beyond the standard, with proof.

10) Enter secured debt payments.

• List each secured debt, such as your mortgage and car loans.
• Enter the total amount due over the next 60 months, including arrears cure amounts.
• Divide by 60 to get the average monthly secured payment for each debt.
• Include any property taxes or insurance paid through escrow in the secured payment.
• If you plan to surrender collateral, do not include ongoing payments for that debt.

11) Enter priority debt payments.

• List priority debts, such as recent income taxes or domestic support arrears.
• Enter the total owed as of filing.
• Divide by 60 to find the monthly average required to retire the priority debt.

12) Add the Chapter 13 administrative expense.

• The form provides a multiplier to estimate a hypothetical Chapter 13 administrative cost.
• Multiply that factor by the sum of your projected plan payments as directed by the form.
• Enter the result as a monthly deduction in the means test.

13) Compute total deductions.

• Add all standard allowances, local standards, other necessary expenses, secured payments, priority payments, and the administrative expense.
• Double‑check that you did not double‑count the same cost in two categories.
• Keep notes on how you calculated each number.

14) Calculate your monthly disposable income for the means test.

• Subtract total deductions from your current monthly income figure.
• The result is your means test disposable income.
• If the result is negative, the presumption of abuse will not arise.
• If positive, proceed to the form’s presumption section.

15) Apply the presumption test.

• The form instructs you to multiply your disposable income by 60.
• Compare that 60‑month amount to the thresholds shown on the form.
• If the result is below the lower threshold, no presumption arises.
• If above the upper threshold, a presumption of abuse arises.
• If between thresholds, the form compares to a portion of your unsecured debts.

16) Consider special circumstances if needed.

• If a presumption arises, you can try to rebut it with special circumstances.
• Examples include a serious medical condition or a call to active duty.
• Provide a detailed written explanation of each claimed item.
• Attach proof, such as medical records, orders, or billing statements.
• Show the amount and why it is necessary and reasonable.
• Enter each item as an additional deduction as directed by the form.

17) Complete the declaration and signature.

• Read the declaration carefully. You are signing under penalty of perjury.
• Sign and date the form. If joint, both spouses should sign.
• Include your contact information if the form requests it.
• Your attorney will also sign where required.

18) Attach supporting documents.

• Attach any required worksheets included with the form.
• Attach your special circumstances explanation and proof, if claimed.
• Keep all source records organized for the trustee’s review.
• You will also provide pay advice and tax returns as separate filings.

19) Check for consistency with other schedules.

• Compare your income entries with Schedule I.
• Compare your expense picture with Schedule J. They will not match line‑by‑line.
• Differences are normal because the means test uses standardized figures.
• Make sure your household size, spouse’s income, and support payments match across forms.

20) Review and file.

• Recheck math. Ensure each total carries correctly to the next line.
• Confirm that secured and priority debts are averaged over 60 months.
• Confirm that you did not include surrendered collateral payments.
• File the form with your other Chapter 7 documents.
• Provide copies to the trustee if requested.

A few practical tips will help. Use actual monthly averages for taxes, insurance, and support. Do not guess. If a cost varies, average over several months. For secured arrears, use the arrearage amount as of filing and spread it over 60 months. For non‑filing spouse income, document the marital adjustment. Exclude expenses that do not benefit your household, such as the spouse’s separate credit card spending. Keep your calculation notes. The trustee may ask you to explain any unusual entries.

Understand what not to include. Do not add discretionary spending like vacations, dining out, or entertainment. Do not add duplicate insurance costs if already included in a standard allowance. Do not include voluntary retirement contributions as a necessary expense. Do not claim car ownership costs for a vehicle you own free and clear. Do not list student loan payments as priority debt; they are usually unsecured nonpriority.

Be prepared for a follow‑up. If your disposable income is close to the threshold, the trustee may scrutinize your entries. Clear documentation reduces questions. If your income or expenses change after filing, discuss your options with your attorney. You cannot change the six‑month average after filing. But you can present special circumstances to address material shifts.

By completing B 122A-2 carefully, you give the court a clear picture of your means test result. You also reduce the risk of delay or challenge. Treat every line as important. Enter accurate figures. Provide solid proof. Sign with confidence.

Legal Terms You Might Encounter

• Current Monthly Income (CMI) means your average monthly income for the six full months before you file. On B 122A-2, you use CMI from your companion form to start the calculation. It sets the base for the expense deductions and final result.
• Median income is the income level that splits households into two halves. If your CMI is below the median for your household size, you usually do not complete B 122A-2. If your CMI is above the median, you complete this form to calculate whether a presumption of abuse arises.
• Presumption of abuse is the outcome the court must consider if your calculated disposable income is high enough. B 122A-2 determines if this presumption applies based on standardized deductions, debt payments, and other permitted expenses. If the presumption arises, you may respond with special circumstances or other case information.
• IRS National and Local Standards are standardized expense amounts for items like food, housing, utilities, and transportation. B 122A-2 uses these standards to cap or set certain deductions. You do not list actual spending for these categories unless the form permits an additional allowance.
• Other Necessary Expenses are expenses the rules allow if they are necessary for health, welfare, or the production of income. On B 122A-2, you may list items like taxes, mandatory payroll deductions, term life insurance, health care, childcare, or care of a disabled family member. You must be ready to show that they are reasonable and necessary.
• Secured debt is a debt tied to specific property, like a mortgage or car loan. B 122A-2 lets you deduct average monthly payments for secured debts you will keep paying. You also amortize certain arrears or cure amounts over 60 months.
• Priority debt is debt the law ranks to be paid before other unsecured debts, such as some taxes or domestic support. On B 122A-2, you can deduct the average monthly payment you will make on priority debts by dividing the total by 60 months.
• Disposable income on this form is a calculated figure under the means test rules. You start with CMI, subtract standardized and allowed expenses, and subtract allowed debt payments. The result drives whether a presumption of abuse arises.
• Special circumstances are unusual, necessary expenses or income adjustments not captured by standard deductions. B 122A-2 lets you claim them if you document the need, explain the amount, and show you have no reasonable alternative. You must attach a detailed statement and proof.
• Administrative expenses are estimated costs of administering a hypothetical repayment case. B 122A-2 includes a built-in allowance for this. You use the form’s instructions to compute the standard amount; you do not invent your own figure.

FAQs

Do you need to complete B 122A-2 if your income is below the median?

No. If your household CMI is below the median, you typically stop after the earlier form. B 122A-2 applies when your CMI is above the median or when the rules otherwise require it.

Do you include your spouse’s income if your spouse is not filing?

You include it when calculating CMI, subject to any marital adjustment that applies on the earlier form. B 122A-2 then uses the resulting income figure. Use the same household size and income foundation you already established.

Do you count Social Security benefits in this calculation?

The CMI figure you bring into B 122A-2 already excludes Social Security benefits under the statute. Use the income figure calculated on your companion form without adding those benefits back.

Do you list secured debts if you plan to surrender the property?

No. You generally do not deduct payments for secured debts that you will not keep paying. The form asks about secured debts you will continue to pay. Follow the form’s prompts on whether you intend to keep or surrender the collateral.

Do you use actual expenses or standardized amounts for food, housing, and transportation?

You use standardized amounts set by the rules for many categories. The form tells you when to use standards and when you may claim an additional or actual expense. Only claim actual amounts where the form allows it.

Do you prorate lump-sum expenses, like car insurance or tax payments?

Yes. Convert irregular or annual expenses into a monthly average when the form asks for a monthly figure. For priority debts, divide the total expected payment by 60 months unless the form instructs otherwise.

Do you need to attach documents for special circumstances?

Yes. Attach a statement that explains the expense, amount, and why it is necessary. Include proof, like bills, letters, or contracts. Show why no reasonable alternative exists and the monthly impact over 60 months.

Do you round to whole dollars?

Yes. Round to the nearest whole dollar unless the form instructs otherwise. Keep your rounding consistent across the form.

Checklist: Before, During, and After the B 122A-2 – Chapter 7 Means Test Calculation

Before you sign

• Gather your completed companion form that shows your CMI and household size.
• Collect recent pay statements and income records for the six-month look-back period.
• Assemble mortgage statements, car loan statements, and other secured debt documents.
• Identify any arrears or cure amounts on secured debts and the totals due.
• Compile tax notices and statements for priority debts and estimates for amounts owed.
• List mandatory payroll deductions: taxes, Social Security, Medicare, union dues, and mandatory retirement.
• Gather proof of health insurance premiums and out-of-pocket health care costs.
• Collect childcare, eldercare, or disability-related care invoices or contracts.
• Confirm that life insurance is term life if you plan to deduct premiums.
• List education expenses required for employment or for a disabled child’s needs.
• Add utility, transportation, and telecommunication bills if the form allows additional claims.
• Note any court-ordered domestic support obligations and ongoing payment schedules.
• Draft a “special circumstances” summary if you plan to claim any, with supporting proof.
• Check that the form’s effective standards date aligns with your filing window.

During signing and review

• Verify your CMI and household size match your earlier form.
• Confirm you used standardized expense amounts where required.
• Check you did not mix actual expenses into standardized categories.
• Review transportation entries: operating cost standards vs. ownership costs and loan payments.
• Confirm you did not claim ownership costs where you have no loan, unless the form permits.
• Validate secured debt entries reflect debts you will keep and pay.
• Amortize secured arrears or cure amounts over 60 months, not as a lump sum.
• Divide priority debts by 60 months to find the monthly deduction.
• Ensure life insurance is term, not whole life, for any claimed premium.
• Verify retirement entries exclude voluntary contributions and include only allowed items.
• Recalculate subtotal lines and the final disposable income figure.
• Review the presumption of abuse line and the check box or result declaration.
• Attach your special circumstances statement and documents, if any.
• Sign and date the declaration. Ensure any joint filer signs too.
• Keep the form legible. Use consistent rounding and clear handwriting if not typed.

After signing

• File the signed form with your case documents by the required deadline.
• Keep a complete copy with all attachments for your records.
• Be ready to provide copies to your trustee if requested.
• Monitor for any math or transcription errors; prepare to amend if needed.
• If you later claim special circumstances, file a corrected form and attachments.
• Track any change that could affect your calculation and update promptly.
• Bring a copy to your meeting of creditors in case of questions.
• Store your records securely for the life of your case and beyond.

Common Mistakes to Avoid B 122A-2 – Chapter 7 Means Test Calculation

• Double-counting transportation costs:

Don’t claim both standardized operating costs and actual costs unless the form allows. Overstating expenses can trigger objections and delays.

• Deducting payments for property you will surrender:

Don’t include secured debt payments if you will not keep the collateral. Inflated deductions can undermine your credibility and draw trustee scrutiny.

• Using voluntary retirement contributions as deductions:

Don’t list optional contributions as allowed expenses. Disallowed entries can increase your calculated disposable income and affect the presumption result.

• Failing to amortize arrears and priority debts over 60 months:

Don’t enter the full amount as a single month’s expense. Use the required 60-month division. Wrong math can create a false presumption of abuse.

• Skipping documentation for special circumstances:

Don’t assert special circumstances without proof. Missing records lead to disallowance of the claim and a higher disposable income figure.

What to Do After Filling Out the Form B 122A-2 – Chapter 7 Means Test Calculation

File the form:

• Submit B 122A-2 with your bankruptcy papers by the required deadline.
• Include all attachments, signatures, and consistent rounding.

Provide copies as needed:

• Keep a full copy for yourself.
• Be ready to send a copy to your trustee upon request.
• Bring a copy to your meeting of creditors.

Respond to questions:

• If the trustee asks about specific lines, have your backup ready.
• Be prepared to explain the standardized vs. actual expenses you claimed.
• If the presumption arises, prepare your special circumstances package.

Amend when necessary:

• Use a new copy of B 122A-2 to correct errors or update figures.
• Mark it as amended, sign it, and attach revised documentation.
• File the amended form and provide copies to interested parties if required.

Monitor your case posture:

• If your calculation shows no presumption, maintain your documentation in case of review.
• If a presumption arises, expect further questions about income, expenses, or alternatives.
• Keep communication prompt and factual to avoid delays.

Maintain records:

• Store pay statements, bills, and all proofs you used for at least the duration of your case.
• Note the version and effective date of the standards you applied.
• Record how you derived each monthly figure from annual or irregular amounts.

Align future filings:

• Use the same household size and income methodology across all related forms.
• Keep your numbers consistent across schedules and statements.
• Update your figures if the court orders corrections.

Prepare for outcomes:

• If your final figure is close to the threshold, expect a deeper review.
• If your special circumstances are central, keep evidence organized and accessible.
• If you make changes in intent (for example, deciding to surrender property), amend your secured debt entries.