Chapter 7 Means Test Explanations

Following is a line-by-line summary of Form 22A and various recurring disposable income issues likely to arise in chapter 7 under the BAPCPA provisions of 11 U.S.C. § 707(b).

See also: Chapter 7 Bankruptcy Explained: Requirements and Steps


Line 1B, Declaration of Non-Consumer Debts

Less than 50% of total scheduled debt was incurred for personal, household or family purposes.

Purpose of debt is judged at the time the debt was incurred.

Home mortgages are typically consumer debt.

Most tax debts are not typically consumer debt.


Line 3, Gross wages, salary, tips, bonuses, overtime, commissions.

Includes pay/shift differentials.

Includes income, whether or not taxable.

Figures are gross amounts, before any deductions.


Read all in  USTP Position on Legal Issues Arising Under The Chapter 7 Means Test