The means test has a reputation it mostly does not deserve. People assume it is a hard income ceiling that shuts out anyone with a decent paycheck, when in practice it is a two-stage calculation that most working households in Grays Harbor County clear without difficulty. The Rossback Firm runs this analysis at the start of every bankruptcy consultation, because the answer determines whether Chapter 7 is available or whether a Chapter 13 repayment plan is the realistic path. The numbers below reflect the figures in effect as of September 2026.
What is the means test, and who has to take it?
The means test is a screening calculation Congress created in 2005 to identify Chapter 7 filers who could afford to repay a meaningful portion of their unsecured debt. It lives at 11 U.S.C. section 707(b) and is completed on Official Forms 122A-1 and 122A-2.
It applies to individuals whose debts are primarily consumer debts. The first stage compares your household income to the median family income for a Washington household of your size. Come in under that figure and you are done. The test is satisfied, no further calculation is required, and the presumption of abuse does not arise.
Roughly speaking, most Chapter 7 filers never reach the second stage. The extended calculation only matters for households above the median line.
What are the Washington income limits right now?
The United States Trustee Program publishes state median family income figures drawn from Census Bureau data and updates them periodically. For cases filed on or after July 15, 2026, the Washington thresholds are:
- One earner: $88,585
- Household of two: $107,100
- Household of three: $131,737
- Household of four: $156,567
Add $11,100 for each person beyond four. A household of six, for example, tests against $178,767.
Household size counts everyone living in your home who depends on household income, which can include an adult child, a parent, or a partner who is not on the paperwork. Getting the count right matters, because one additional person can move the threshold by more than $11,000.
Which income counts, and which does not?
The figure being tested is current monthly income, defined at 11 U.S.C. section 101(10A) as your average monthly income from all sources during the six full calendar months before the month you file, multiplied by twelve.
That definition is broader than a tax return in some ways and narrower in others. It picks up wages, overtime, self-employment and business income, rental receipts, unemployment compensation, pension distributions, interest and dividends, and regular contributions others make toward your household expenses. It also picks up your spouse’s income even when your spouse is not filing with you, unless you are legally separated or living apart.
Social Security benefits are excluded from current monthly income by statute. Someone whose household income is substantially made up of retirement or disability benefits under the Social Security Act often tests well below the median even when the deposits look otherwise.
When a non-filing spouse’s income is included but genuinely is not contributing to household expenses, Form 122A-1 allows a marital adjustment deduction for that portion. The deduction has to be itemized and explained, and trustees look at it closely.
What happens if my income is above the Washington median?
Going over the median does not disqualify you. It moves you to Form 122A-2, where allowed expenses are subtracted from income to arrive at monthly disposable income.
The deductions come from several sources. National Standards published by the IRS cover food, clothing, household supplies, personal care, and out of pocket health care. Local Standards cover housing, utilities, and transportation, and they vary by county, so the figures applied to a Grays Harbor County household differ from those used elsewhere in the state. On top of those, you deduct actual amounts for taxes, mandatory payroll deductions, term life insurance, court-ordered support, childcare, health insurance, and the average monthly payments owed on secured debts such as a mortgage or car loan.
The result is multiplied by 60 to project five years of disposable income, then compared to two figures that adjusted on April 1, 2025 and hold through March 31, 2028:
- Under $10,275, no presumption of abuse arises and Chapter 7 remains available.
- Between $10,275 and $17,150, the presumption arises only if that amount covers at least 25 percent of your nonpriority unsecured debt.
- At or above $17,150, the presumption of abuse arises.
Filers with large secured obligations frequently pass the second stage even with solid income, because mortgage and vehicle payments are deducted in full. This is where a case that looked hopeless on the first page turns around.
Even a presumption of abuse can be rebutted. Section 707(b)(2)(B) allows a showing of special circumstances, such as a serious medical condition or a call to active duty, with each additional expense itemized, documented, and attested to under oath.
Can the court still object if I pass?
Yes, though it is uncommon. Section 707(b)(3) lets the court consider bad faith or the totality of your financial circumstances even when the arithmetic produces no presumption. A filer who passes on paper while carrying obvious discretionary spending or who ran up debt shortly before filing can still face a motion to dismiss.
Who skips the means test entirely?
Three groups are outside it. Filers whose debts are not primarily consumer debts avoid the test altogether, which comes up regularly for people who guaranteed business obligations, ran a fishing or logging operation, or took on contracting debt. Disabled veterans who incurred their debt primarily while on active duty or performing homeland defense activity are excluded. Certain reservists and National Guard members called to active duty receive a temporary exclusion as well.
Why does timing change the answer?
Because the test looks at six full calendar months, the filing date can decide eligibility. Someone laid off in July who files in September is still carrying three or four high earning months on the average. Waiting until December drops those months out of the window.
The same works in reverse. A seasonal worker who has just finished a strong stretch may test above the median in February and below it in July. Severance, a bonus, or a one-time distribution can distort the average for half a year. Filing on the wrong side of that curve is one of the more avoidable mistakes in a consumer case.
What The Rossback Firm reviews before answering the question
The analysis starts with six months of pay records for everyone in the household, the household count, and a list of secured debt payments. Those three items usually settle it in a single sitting. Beyond eligibility, the same information shows whether a Chapter 13 plan would be affordable if the means test closes the door on Chapter 7, and whether waiting a month or two would change the outcome.
Qualifying for Chapter 7 in Washington comes down to a specific calculation applied to your actual numbers, not to a general sense of whether you earn too much. Plenty of households that assumed they were ineligible clear the test once secured payments and local expense standards are factored in, and others discover that a different filing date changes everything. The Rossback Firm works through the means test with clients across Grays Harbor County and the surrounding counties and explains plainly what the result means for your options. If you have been guessing at the answer, a consultation will replace the guess with a number.