Form 122A-2: Means Test Calculation.

The one-sentence version

Form 122A-2 takes the Current Monthly Income from Form 122A-1, subtracts a long list of standardized and actual allowed expenses, and tests whether what remains - your "disposable income" - is enough to fund a Chapter 13 plan. If yes, there's a presumption your Chapter 7 is "abusive" and your case may be dismissed or converted.

Why this exists

The 2005 BAPCPA amendments added the Means Test specifically to keep "high-income" filers out of Chapter 7. The theory: if you can afford a meaningful Chapter 13 payment plan, you should be in Chapter 13 paying creditors back, not in Chapter 7 wiping debts. Form 122A-2 is the math that decides which side of the line you fall on.

The structure

The form is long (8+ pages) and arithmetic-heavy. Conceptually it does four things:

1. Establishes your monthly income from 122A-1
2. Subtracts standardized allowed expenses (IRS National and Local Standards)
3. Subtracts actual amounts for certain expense categories
4. Tests whether the remaining "monthly disposable income" exceeds statutory thresholds

The deductions - in order

1. IRS National Standards

Fixed dollar amounts the IRS publishes for things you spend on regardless of where you live: food, clothing, household supplies, personal care, miscellaneous. Amounts depend on household size, not location.

2. IRS Local Standards

Vary by county. Cover:

• Housing and utilities - non-mortgage portion (utilities, maintenance, etc.)
• Housing and utilities - mortgage/rent portion
• Transportation - operating costs (gas, insurance, maintenance), with separate amounts for 0, 1, or 2 vehicles
• Transportation - ownership costs (loan or lease payment), capped at the IRS standard

3. Other Necessary Expenses (actual)

Actual amounts (not standards) for:

• Taxes
• Mandatory payroll deductions (union dues, mandatory retirement)
• Life insurance (term insurance on the debtor's life only)
• Court-ordered payments (alimony, child support)
• Education for employment or for a physically- or mentally-challenged child
• Childcare
• Health care (additional amounts beyond IRS standard)
• Telecommunications services beyond basic home telephone

4. Additional Deductions Allowed by Statute

• Health insurance, disability insurance, and HSA contributions (actual amounts)
• Continuing contributions to care of dependents who cannot pay for themselves
• Protection against family violence
• Excess home energy costs
• Education for children under 18 (capped, typically around $200/month per child)
• Food and clothing (additional over IRS National Standard, up to 5% more, with documentation)
• Continuing charitable contributions (up to 15% of gross income)

5. Deductions for Debt Payment

• Average monthly payment on secured debts that will continue post-filing (mortgages, car loans you're keeping) - this is the big one for above-median homeowners
• Priority claim payments (taxes, support arrears) - amortized over the Chapter 13 plan period
• Administrative expenses for a Chapter 13 trustee's fee, if applicable

The disposable income test

You subtract all the deductions from your Current Monthly Income to get a "monthly disposable income" figure. Then you compare it against two thresholds:

• If monthly disposable income is less than $9,075 over 60 months (i.e., less than ~$151/month at the time of writing, periodically adjusted): you pass; no presumption of abuse.
• If it's more than $15,150 over 60 months (~$252/month): the presumption of abuse arises; your case is likely converted to Chapter 13 or dismissed.
• If it's between: the presumption arises only if the disposable income would pay at least 25% of your nonpriority unsecured debt over the 60-month plan. So if you have $50,000 in unsecured debt, the test becomes whether your 60-month disposable income exceeds $12,500.

The dollar thresholds adjust every 3 years on April 1.

Why the Means Test is the form most likely to need an attorney

Above-median Means Test calculations get technical fast:

• The IRS standards have many sub-rules about what counts and what's capped.
• The "Other Necessary Expenses" categories are riddled with case law about what qualifies and what doesn't.
• Strategic decisions about whether to claim certain deductions interact with the bigger picture of dischargeability and asset protection.
• The dollar thresholds and IRS standards update on different schedules, and using an outdated table can produce a wrong answer.

If you're above median, this is the part of the case where a one-hour attorney consult often pays for itself many times over - it's also one of the situations flagged in When DIY is a bad idea.

Common mistakes

• Using outdated IRS standards. They're updated each spring and fall; use the version current at filing.
• Claiming the housing standard plus your actual mortgage - the local standard is the cap, not in addition.
• Forgetting to deduct future-secured-debt payments on a car or mortgage you're keeping.
• Including expenses for adult non-dependents - careful, household size and dependent status are different.
• Skipping "Other Necessary Expense" categories you actually qualify for.
• Filing a wrong calculation and then having the U.S. Trustee correct it upward, blowing the presumption.

Related forms

Form 122A-2 is only reached if you're above median on Form 122A-1. For a plain-English overview of qualification, see Do I qualify for Chapter 7? and When DIY is a bad idea. See the complete forms index.