The means test is complicated and only a brief summary follows. First, an analysis must be done to determine your current monthly income. Current monthly income is an average of  your previous six months of income from all sources, except social security. This will include your spouse’s income, even if only one spouse is filing for bankruptcy (unless you are separated or living apart).  If your current monthly income, as defined above, is less than the state median income, based on household size, then you will most likely be able to file for Chapter 7  bankruptcy.

If your current monthly income is over the state median, then deductions for certain actual expenses and certain allowable expenses (based on Internal Revenue Service standards) are made to calculate your monthly disposable income. A “presumption of abuse” applies if your monthly disposable income multiplied by 60 is the lesser of  $10,000 or 25% of your nonpriority unsecured debt (as long as the 25% is at least $6,000).  If the presumption applies, your Chapter 7 case would be subject to dismissal and you may have to file a Chapter 13 bankruptcy and pay back some of your debts.

New York State Median Income Table

$74,501