Idaho Bankruptcy Means Test: Updated Figures and Forms

If you are considering filing for Chapter 7 bankruptcy in Idaho, it’s essential to understand how the Means Test determines eligibility. The Means Test is a statutory formula established under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).

The Means Test calculates your average income over the six months preceding your bankruptcy filing and compares it to Idaho’s median income for your household size. The test also allows for deductions and adjustments based on IRS National Standards, which can reduce your calculated income and help you qualify for Chapter 7 relief.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Key Takeaways on the Idaho Means Test

• The Means Test: A mathematical formula that determines eligibility for Chapter 7 bankruptcy by calculating the average income received in the six calendar months before filing.
• When to File for Bankruptcy: Because the calculation relies on a six-month lookback period, any temporary increase in income could result in failing to qualify, forcing debtors to strategically delay filing.
• Other Factors to Consider: Passing the Means Test does not guarantee a Chapter 7 filing, as you must also consider the value of non-exempt assets and remaining current on secured debt payments such as car loan and mortgage payments.
• The Chapter 13 Advantage: For debtors who fail to qualify for Chapter 7, Chapter 13 allows unique financial strategies such as curing mortgage arrears or restructuring auto loans.

How the Means Test Works

The first step in the Means Test calculation is using Official Form 122A-1 to calculate your monthly income against the Idaho state median for your household size. If your income falls at or below the median, you automatically pass.

However, passing the initial Means Test calculation does not mean you should automatically file for Chapter 7, as you also have to determine to what extent your assets are protected under Idaho’s specific exemptions.

For example, under Idaho Code §11-605(3), the motor vehicle exemption is $10,000. If your truck is worth $25,000 and your auto loan balance is $5,000, your equity is $20,000. After applying the $10,000 exemption, the remaining $10,000 is non‑exempt.

In this scenario, even if a debtor qualifies for Chapter 7, Chapter 13 is often the better path because it allows the debtor to repay the non‑exempt portion through the 36-60 month plan.

This same principle applies to secured debts. A frequent mistake among self‑represented filers is choosing Chapter 7 when they are already behind on secured debts such as car loans or mortgages. Chapter 7 offers no legal path to cure arrears. Only Chapter 13 provides a structured way to catch up on missed payments and prevent repossession or foreclosure.

Even if you pass the Means Test, eligibility for Chapter 7 is not guaranteed. The Bankruptcy Code still requires a review of your current financial situation under Sections 707(b)(2) and (3). After the Means Test calculation, the trustee will examine Schedule I (Income) and Schedule J (Expenses) to determine if there is disposable income.

Schedules I and J are separate from the Means Test Calculations, and if there is sufficient disposable income to fund a repayment plan, the trustee may seek dismissal or conversion to Chapter 13 under §707(b).

In that circumstance, a debtor may be forced into Chapter 13 even though they technically “passed” the Means Test, because Chapter 13 is designed for debtors who have the ability to pay creditors over time.

Form 122A-1: The Income Calculation

The income figure used on Form 122A-1, known as current monthly income (CMI) under 11 U.S.C. §101(10A), is the average of all income received during the six calendar months immediately preceding the filing date. That six-month average is then doubled to produce an annualized figure for comparison against the state median.

Income sources that count toward CMI include wages, salary, rental income, business net income, and regular contributions from household members and non-filing spouses. Certain income is explicitly excluded by statute, such as Social Security benefits §101(10A)(B).

The U.S. Trustee Program, drawing on U.S. Census Bureau data, publishes updated median family income figures twice annually. These figures govern whether an Idaho filer must complete Form 122A-2.

Idaho Median Income Figures (Effective April 1, 2026)

Household Size	Annual Median Income	Monthly Median Income
1 Person	$73,413	$6,117.75
2 Persons	$86,160	$7,180.00
3 Persons	$98,381	$8,198.42
4 Persons	$119,662	$9,971.83

For households larger than 4, add $11,100 per person.

Form 122A-2: When Your Income Exceeds Idaho’s Median Income

If your income exceeds the state median, you must complete step two of the Means Test using Official Form 122A‑2. This step applies the IRS National and Local Standards to determine how much of your income is offset by allowed expenses.

These standardized deductions cover basic household needs, such as food, clothing, housing, utilities, transportation, and insurance, and are subtracted from your income to calculate your disposable income.

Being above the median does not bar you from Chapter 7; it simply requires a more detailed calculation to determine whether your remaining disposable income falls below the statutory threshold.

What Happens If You Fail the Means Test?

“Failing” the means test means your current monthly income (CMI) exceeds the statutory amounts, creating a presumption of abuse under §707(b). This presumption is not always final. Under §707(b)(2), a debtor may rebut it by demonstrating special circumstances, such as a serious medical condition.

If the presumption cannot be rebutted, Chapter 13 becomes the practical alternative. Chapter 13 offers tools unavailable in Chapter 7, including the ability to cure mortgage arrears, restructure auto loans, and in some cases eliminate wholly unsecured second mortgages or HELOCs through lien stripping.

Important Timing Consideration

If you received a one-time bonus or had unusually high income such as overtime in any month during the six months, that spike will inflate your CMI, even if your current earnings are much lower. In those situations, filing should be delayed until that month is no longer part of the Means Test calculation.

The Bottom Line on Idaho’s Means Test

Knowing where your household income stands relative to the Idaho median provides clarity on your legal options. If you believe Chapter 7 or Chapter 13 may be right for your situation, the next step is a consultation with a licensed Idaho bankruptcy attorney who understands local court practices and can accurately evaluate your Means Test figures prior to filing.

Educational Resources

• For Institutions: Colleges and universities may request examination copies of my textbook directly from Routledge Publishing.
• For Students & Practitioners: Single print and digital copies are available via Amazon Books.
• Video Lectures: Stream comprehensive legal breakdowns and video explanations on the Bankruptcy.blog YouTube Channel.

Bankruptcy Court & Consumer Resources

Explore additional consumer guides and state-specific directories to navigate your legal options:

• A step-by-step master guide to completing and understanding the bankruptcy petition.
• Bankruptcy Court Directory: Full listings for the federal bankruptcy court system and trustee contact information.
• State Bankruptcy Exemptions: Review your state‑specific exemptions or compare them with the federal exemptions.
• 341 Meeting Procedures: Prepare for your court date with updated rules, expectations, and practical guidance.

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Idaho Statutes and Bankruptcy Code References

• Chapter 7 Statement of Your Current Monthly Income.
• Idaho Code §11-605. Exemption of Property from Attachment or Levy.
• 11 U.S. Code §707 – Dismissal of a case or conversion to a case under chapter 11 or 13.
• 11 U.S. Code §101 – Definitions.