The means test determines whether you can file Chapter 7 bankruptcy. Your income is compared to the Arizona median income for your household size. Here is how it works for Phoenix residents filing in the D. Ariz..
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:
If you live in Phoenix, these are the Arizona income thresholds for the means test. Your total household income over the past six months (annualized) must be below these figures to pass Part 1.
| Household Size | Annual Median Income | Monthly Equivalent |
|---|---|---|
| 1 person | $56,381 | $4,698 |
| 2 persons | $72,917 | $6,076 |
| 3 persons | $81,646 | $6,804 |
| 4 persons | $99,058 | $8,255 |
| Each additional person | Add approximately $9,900 | |
Phoenix filers are in the D. Ariz.. Courthouse: 230 N 1st Ave, Suite 101, Phoenix, AZ 85003 (Sandra Day O'Connor U.S. Courthouse).
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 Arizona median income
Compare your annualized CMI to the Arizona 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.
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 Phoenix 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 (representing a 5-year Chapter 13 plan). If the result is less than $9,075, you pass. If 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 as part of your petition filed in the D. Ariz..
Failing the means test does not mean you cannot file bankruptcy. You have several options:
The means test is a calculation required for Chapter 7 bankruptcy that compares your income to the median income in Arizona. If your income is below the median for your household size, you automatically qualify for Chapter 7. If above, you must pass a second calculation that factors in your allowed expenses.
The 2026 Arizona median income thresholds are: 1-person household $56,381, 2-person $72,917, 3-person $81,646, 4-person $99,058. Add approximately $9,900 for each additional household member beyond four.
If you fail the means test, you can file Chapter 13 instead (no means test required), wait until your income drops below the median, challenge the presumption of abuse with special circumstances, or work with an attorney to re-examine your allowable deductions.
No, the means test does not apply to Chapter 13 bankruptcy. However, your income level determines whether your Chapter 13 plan lasts 3 years (below median) or 5 years (above median), and how much you must pay to unsecured creditors.
The means test uses your average monthly income from all sources over the six full calendar months before filing. This includes wages, salary, tips, bonuses, overtime, business income, rental income, pension, unemployment, and other regular income. Social Security benefits are excluded from the initial median income comparison.
The means test is filed with your bankruptcy petition in the D. Ariz.. The courthouse is located at 230 N 1st Ave, Suite 101, Phoenix, AZ 85003 (Sandra Day O'Connor U.S. Courthouse). The means test form is Official Form 122A-1 (and 122A-2 if above median).
Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.
Free Discharge Screener Means Test Guide