Chapter 7 Means Test Worksheet - California

PREPARATION GUIDE — NOT THE OFFICIAL COURT FORM

Chapter 7 filings require Official Forms 122A-1, 122A-1Supp, and 122A-2 (Fed. R. Bankr. P. 9009). Use this worksheet to organize your calculations, then transfer the results to the official forms or your court's e-filing system. Official forms: https://www.uscourts.gov/forms/bankruptcy-forms. Do not file this worksheet with the court.

CHAPTER 7 MEANS TEST WORKSHEET — CALIFORNIA

UNITED STATES BANKRUPTCY COURT

☐ NORTHERN ☐ EASTERN ☐ CENTRAL ☐ SOUTHERN DISTRICT OF CALIFORNIA

PART 1: FILING STATUS, MARITAL STATUS & EXCLUSIONS

Section A: Marital / Filing Status

☐ Not married
☐ Married, filing jointly
☐ Married, filing individually — spouse's income reported (see Part 2)
☐ Married, living separately or legally separated — see marital adjustment

Section B: Means Test Exclusions

If any box below applies, the means test calculation may not be required. Complete Official Form 122A-1Supp.

☐ Debts are NOT primarily consumer debts — 11 U.S.C. § 707(b)(1). If business/non-consumer debts exceed 50% of total debt by dollar amount, the means test does not apply.
☐ Disabled veteran exclusion — 11 U.S.C. § 707(b)(2)(D)(i). Debtor is a disabled veteran (as defined in 38 U.S.C. § 3741(1)) whose indebtedness occurred primarily during active duty or while performing a homeland defense activity.
☐ Reservist / National Guard exclusion — 11 U.S.C. § 707(b)(2)(D)(ii). Debtor was a member of the Reserves or National Guard called to active duty (after Sept. 11, 2001) for at least 90 days; presumption does not apply during active duty plus 540 days thereafter.

☐ No exclusion applies — complete the full worksheet.

PART 2: CURRENT MONTHLY INCOME (CMI) — 6-MONTH LOOKBACK

Lookback period: From [__/__/____] to [__/__/____] (six full calendar months ending the last day of the month before filing)

Section A: Debtor 1 Income

Section B: Debtor 2 / Spouse Income

Section C: Statutory Income Exclusions (do NOT include)

☐ Social Security retirement benefits
☐ Social Security Disability Insurance (SSDI)
☐ Supplemental Security Income (SSI)
☐ Payments to victims of war crimes or crimes against humanity
☐ Payments to victims of international or domestic terrorism

Section D: CMI Computation

PART 3: ANNUALIZED CMI vs. CALIFORNIA MEDIAN FAMILY INCOME

Section A: Household Size

Section B: California Median Family Income (fillable — verify current figures)

Verify the current California figure at https://www.justice.gov/ust/means-testing for the table in effect on your petition date.

Section C: Median Income Comparison

DETERMINATION:

☐ Annualized CMI is AT OR BELOW the CA median → Presumption of abuse does NOT arise. Complete Official Form 122A-1 only; do not complete Form 122A-2. You may proceed with Chapter 7.

☐ Annualized CMI is ABOVE the CA median → Complete Part 4 and Official Form 122A-2 (full means test calculation).

PART 4: DEDUCTIONS FROM INCOME (Form 122A-2)

Section A: IRS National Standards — Food, Clothing & Other Items

Section B: IRS Local Standards — Housing & Utilities (by CA county)

County of residence: [________________________________]

Section C: IRS Local Standards — Transportation

Section D: Other Necessary Expenses

Section E: Secured Debt Payments

Formula: (total of all amounts contractually due over 60 months after filing) ÷ 60. Secured debt deduction: $[____]

Section F: Priority Debt Payments

PART 5: MONTHLY DISPOSABLE INCOME & § 707(b)(2) PRESUMPTION

Section A: Disposable Income

Section B: 60-Month Projection & Thresholds

FINAL DETERMINATION:

☐ 60-month disposable income is BELOW the lower threshold → No presumption of abuse. Eligible for Chapter 7.
☐ 60-month disposable income is AT OR ABOVE the upper threshold → Presumption of abuse ARISES.
☐ Between thresholds AND ≥ 25% of nonpriority unsecured debt → Presumption of abuse ARISES.
☐ Between thresholds AND < 25% of nonpriority unsecured debt → No presumption of abuse.

If the presumption arises, it may be rebutted only by documented special circumstances under 11 U.S.C. § 707(b)(2)(B).

PART 6: VERIFICATION & SIGNATURE

I declare under penalty of perjury that the information in this worksheet is true and correct to the best of my knowledge, information, and belief.

Debtor 1 Signature: _________________________________ Date: [__/__/____]

Debtor 2 Signature: _________________________________ Date: [__/__/____]

Attorney Signature: _________________________________ Date: [__/__/____]

Attorney Name (print): _________________________________ Bar No.: [____]

CALIFORNIA PRACTICE NOTES

• Bankruptcy districts. California is the only state with four federal judicial districts, each with its own bankruptcy court: Northern District (San Francisco, Oakland, San Jose, Santa Rosa), Eastern District (Sacramento, Fresno, Modesto), Central District (Los Angeles, Santa Ana, Riverside, Woodland Hills, Santa Barbara — the busiest bankruptcy court in the United States), and Southern District (San Diego). File in the district covering the debtor's county of residence/domicile.
• Median income figures. Use the California median family income figure in effect on the petition date. California's medians are among the higher in the nation, but high-cost-of-living counties also generate larger IRS Local Standard deductions. The U.S. Trustee Program updates Census-based median income roughly every six months and applies a CPI adjustment early each year. Confirm at https://www.justice.gov/ust/means-testing.
• IRS Standards. Local Standards (housing & utilities, transportation) vary significantly across California metro areas (LA, SF-Oakland, San Diego, San Jose, Sacramento). Use the version in effect for the petition date and the correct county.
• Community property. California is a community property state; community income and the marital adjustment can materially affect CMI for a married debtor filing individually.
• Filing fee. The Chapter 7 filing fee is set under 28 U.S.C. § 1930; verify the current amount and any fee-waiver/installment options with the clerk.

SOURCES AND REFERENCES

• 11 U.S.C. § 707(b)(2) — Means test and presumption of abuse: https://www.law.cornell.edu/uscode/text/11/707
• 11 U.S.C. § 101(10A) — Current monthly income definition: https://www.law.cornell.edu/uscode/text/11/101
• U.S. Trustee Program — Means Testing (Census median income & IRS standards): https://www.justice.gov/ust/means-testing
• Official Form 122A-1 / 122A-1Supp / 122A-2: https://www.uscourts.gov/forms/bankruptcy-forms
• U.S. Bankruptcy Court, Northern District of California: https://www.canb.uscourts.gov
• U.S. Bankruptcy Court, Eastern District of California: https://www.caeb.uscourts.gov
• U.S. Bankruptcy Court, Central District of California: https://www.cacb.uscourts.gov
• U.S. Bankruptcy Court, Southern District of California: https://www.casb.uscourts.gov

This worksheet assists in completing Official Bankruptcy Forms 122A-1 and 122A-2. Always verify current median income figures and expense standards from the U.S. Trustee Program before filing. Not a substitute for legal advice.