If you're researching bankruptcy, you're likely asking:
For those individuals with primarily consumer debts, the answer usually depends on one critical legal filter: the Chapter 7 means test.
Although people often refer to the “Virginia means test,” it is important to understand that the bankruptcy means test is federal law. It is a statutory formula enacted by Congress and codified in the U.S. Bankruptcy Code. However, the test uses state-specific median income figures (including Virginia) and standardized expense allowances.
Because bankruptcy is a Your Money Your Life (YMYL) topic, accuracy matters. The means test is not a guideline — it is a mandatory statutory calculation.
This guide explains:
The means test is governed by federal law under the U.S. Bankruptcy Code.
The primary statute is:
The definition of income used in the calculation is found in:
For official government guidance:
For required bankruptcy forms:
These are primary authority sources relied upon in bankruptcy courts nationwide, including Virginia.
Under 11 U.S.C. § 707(b)(7), if your income is below the applicable state median income for your household size, the means test does not apply and thus the presumption of abuse under § 707(b)(2) cannot arise.
This does not guarantee a discharge, but it means the mechanical means test formula does not apply.
To determine eligibility for a discharge[CC1] :
The official Virginia median income tables[AD2] are published and updated by the U.S. Trustee Program (Department of Justice).
If your income is:
Even if you are below median and no presumption arises under § 707(b)(2), a court may still evaluate abuse under § 707(b)(3) (bad faith or totality of the circumstances). This is less formula-driven but remains part of the statutory framework.
“Current Monthly Income” (CMI) is defined in:
CMI is the average monthly income the debtor received during the six full calendar months before filing.
It generally includes:
It excludes:
The statute focuses on income received, not merely earned — which can matter in paycheck timing situations.
If your income exceeds the Virginia median income threshold, you must complete the means test formula set out in:
This section determines whether a “presumption of abuse” arises.
The statute allows certain deductions from income, including:
The IRS standards referenced in the Bankruptcy Code are available here:
For many expense categories, the means test uses standardized amounts (IRS National and Local Standards) rather than a debtor’s actual spending, subject to specific statutory allowances and limited adjustments.
If the resulting disposable income exceeds statutory thresholds, a presumption of abuse may arise under:
The dollar thresholds used in this calculation are set by statute and periodically adjusted (see 11 U.S.C. § 104).
Debtors may rebut the presumption by demonstrating “special circumstances” under:
Even if no presumption of abuse arises under § 707(b)(2), courts may still consider dismissal under:
This provision allows courts to evaluate:
This review is less mechanical than the statutory formula but remains part of the legal framework for consumer Chapter 7 cases.
The means test applies only to individual debtors whose debts are primarily consumer debts.
This limitation appears in:
“Consumer debt” is defined in:
Generally, “primarily” is evaluated by the dollar amount of debt, and if more than half of the total debt is non-consumer in nature, § 707(b) typically does not apply.
However, classification of particular debts can be fact-specific and sometimes litigated.
Non-consumer debts may include:
If debts are not primarily consumer debts, the statutory means test formula under § 707(b)(2) does not apply.
The means test calculation must be completed using official forms published by the Administrative Office of the U.S. Courts.
For individual Chapter 7 debtors, this typically includes:
All individual Chapter 7 debtors must file the applicable official forms, subject to statutory exclusions or check-box exemptions reflected in the forms themselves.
Not necessarily. Being above the Virginia median income means you must complete the § 707(b)(2) calculation. Many above-median filers still qualify for Chapter 7.
Incorrect. The statute requires averaging income over the six full calendar months prior to filing under § 101(10A).
Even if a presumption of abuse arises under § 707(b)(2), you may:
For individuals with primarily consumer debt, whose income exceed the applicable median income, the means test determines whether:
It is the primary statutory gatekeeper for consumer Chapter 7 discharge.
The Chapter 7 means test used in Virginia is grounded in federal statutory law:
Understanding how these authorities interact is essential to determining whether you qualify.
Because eligibility for a discharge depends on precise statutory calculations, classification of debts, and current government-published data, reviewing your numbers carefully before filing is critical.
For legal advice specific to your situation, consult a qualified bankruptcy attorney licensed in Virginia.
