The Bankruptcy Means Test
Nevada “Median Income” Test
Las Vegas Bankruptcy Means Test Lawyer
If your monthly household income is less than the Nevada median income for a household of your size, you are presumed to be eligible to file for Chapter 7 bankruptcy under Section 707(b)(2).
Compare your household income over the past six calendar months to the state median.
Median Household Income Test for Nevada
Compare your household income to the Nevada median income.
Form B122A-1 requires you to total up your income for the last six calendar months, average it, then annualize it, and then compare it to the Nevada median for your size household.
If your income is below this amount, you meet the requirements of the “means test” (section 707(b)(2) of the bankruptcy code) to qualify for Chapter 7 bankruptcy.
The chart below makes it a bit easier to figure out. Compare your six-month total income over the last six calendar months to the “6 Mo. Total” in the chart below to get a rough idea of in which side of the line you fall.
Note the rules for household size (column HH) that apply.
If LESS <
Nevada Median Income Test
> If MORE
Chapter 7 is an option.
Not legally required to complete Form B122A-2, but may want to anyway.*
You must complete Form B122A-2 to determine if Chapter 7 is available.
U.S. Trustee Program, Department of Justice,
11 U.S.C. Sec. 707(b)(7) exclusion.
Official Form B122A-1, Line 13
Source: U.S. Trustee, U.S. Department of Justice (for bankruptcy cases filed on or after May 1, 2018)
(*The applicable household size is the number that would currently be allowed as exemptions on your federal income tax return, plus the number of any additional dependents whom you support.)
*source: “Bankruptcy Means Test Calculator for Las Vegas, Nevada (Clark County) Renauer, Albin. Legal Consumer. 2018.Web. 27 June 2018.