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Means Testing in Kentucky

Different chapters of bankruptcy are for people with different incomes. If you make enough money, for instance, you may not qualify for a Chapter 7 bankruptcy unless certain other conditions exist. To determine eligibility, bankruptcy courts use a "means test." The means test looks at the debtor's income compared with the median income where the debtor lives.

Northern Kentucky Bankruptcy Means Test Lawyer

The means test is one of the determining factors in what kind of bankruptcy you will be able to pursue. At Steiden Law Offices, our Northern Kentucky means test lawyers help our clients through all stages of bankruptcy, including the means test. We will advise you on your possibilities and for what kind of bankruptcy you are eligible. Call us today at to set up a free consultation.

We have offices in Florence and Covington and are able to serve clients throughout Boone County and Kenton County.

Kentucky Eligibility Determined by Means Test

Bankruptcy has certain eligibility restrictions regarding income and expenses. The means test is a standardized mathematical formula created to set a certain standard that is a geographically correct measurement of the debtor’s income and expenses.  A debtor who passes the means test may file for Chapter 7 protections. Debtors who fail are not eligible to file for Chapter 7, but can potentially file for Chapter 13 protection.

If the debtor's six-month average household income prior to your filing or anticipated filing date is below the median family income for Kentucky, the debtor is not required to take the means test. The debtors can then file for Chapter 7 relief. If the six-month average household income is above the median family income for Kentucky, then the debtor must take the means test.

Means Test Regional for Northern Kentucky

The means test is calculated for your region, which means the amounts and allowances for certain normal, everyday expenses are for Kentucky residents.

New York City is a much more expensive place to live than Florence, so the law provides for different means tests. The means test uses regionally standardized expenses for all of the household expenses including the cost of housing or apartment rental, car payments and leases, transportation, gas and automobile maintenance, medical expenses, groceries, clothing and educational expense.

The test uses your average household income for the most recent six-month period prior to your filing or anticipated filing date. The trustee uses the means test to determine whether your filing would be an abuse under §707 of the Bankruptcy Code.

In Kentucky, a single person household has an allowable median family income amount of $35,274, two person household $43,793, three person household $53,343 and four person household $63,097, with an additional $6,900 for each additional person in the household.

The results of the means test usually allow Chapter 7 filings. The test is flexible for families with children who require high medical expenses due to a medical condition or any special needs. Adults who require verifiable and expensive medical treatment, an extraordinary expense for travel or certain actual expenses related to self-employment also receive flexibility under the means test. Your Northern Kentucky bankruptcy attorney can help you determine what flexibility may be available to you.

The means test is not used in a Chapter 13, but the income expense calculation in Chapter 13 is a similar concept. Disposable income and standardized expenses are compiled on Official Form 22C and the result is a calculation of the debtor’s current monthly income which must be paid through a Chapter 13 Plan in order to get the Chapter 13 case approved and confirmed.

Steiden Law Offices | Covington Means Test Attorney

If you're considering bankruptcy, determining what kind of bankruptcy you are able to file for is an important first step. Our Northern Kentucky means test lawyers at Steiden Law Offices can help you make that determination, and we will advise you every step of the way. Contact us today at to set up a free consultation.