Oklahoma Bankruptcy Means Test Figures for 2026

If you are considering filing for Chapter 7 bankruptcy in Oklahoma, your first step is calculating your average income for the last six months, which is required under the Means Test. Your average income is then compared to the state’s median income to determine eligibility for Chapter 7 bankruptcy.

However, the Means Test is only the first step and doesn’t mean that you should automatically file for Chapter 7, as that depends on numerous factors such as disposable income and the value of your non-exempt assets.

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

Key Takeaways on the Oklahoma Means Test

• The Means Test: The Means Test is based on the last 6 months of income before filing and helps determine eligibility for Chapter 7 bankruptcy.
• When to File for Bankruptcy: One month of higher-than-normal income could affect the Means Test average, requiring delaying filing to exclude those high-income months.
• Failing the Means Test: Exceeding the state median income creates a “presumption of abuse” under Section 707(b), which triggers a required second-stage analysis that allows for additional deductions and helps qualify for Chapter 7.
• The Chapter 13 Option: Chapter 13 may remain the superior strategic alternative even for debtors who successfully qualify for Chapter 7, particularly when a debtor needs to cure mortgage defaults or automotive loan arrearages.

How to Calculate Income for Chapter 7 Eligibility

The Means Test begins by calculating a debtor’s average income over the preceding six-month period and comparing that figure to Oklahoma’s median income for a household of the same size. This process involves completing Official Form 122A-1 to establish the Current Monthly Income (CMI) under Section 101(10A).

For example, suppose a debtor received a total of $33,000 in gross income during the six calendar months immediately preceding the bankruptcy filing. Dividing that sum by six yields a CMI of $5,500 per month. Annualizing that monthly figure by multiplying it by twelve results in $66,000. This annualized total is then compared to the official Oklahoma median income corresponding to the debtor’s household size.

When your annualized income falls at or below Oklahoma’s state median, no further Means Test calculations are necessary. Nevertheless, qualifying under the income threshold does not automatically mean that Chapter 7 is the best option.

To determine your best options, you must determine the fair market value of your non-exempt assets against Oklahoma’s exemptions and review your disposable income by completing Schedule I (Current Income of Individual Debtor(s)) and Schedule J (Current Expenditures of Individual Debtor(s)).

If your income exceeds the Oklahoma median, then the Means Test analysis advances to the second stage, which requires completing Official Form 122A-2.

Failing the Means Test and the Presumption of Abuse

Official Form 122A-2 is more detailed and calculates monthly disposable income by applying standardized IRS National and Local Standard expense deductions, alongside allowances for housing, transportation, and secured debt payments like mortgages and car loans. Because of Form 122A2, it’s common for these deductions, especially by including secured debts, to help qualify for Chapter 7.

Regardless of passing the Means Test under Step 1 or Step 2, remember that passing the Means Test does not automatically mean Chapter 7 is the ideal choice.

Below are the official median income figures for Oklahoma:

Household Size	Annual Median Income	Monthly Median Income
1 Earner	$61,180	$5,098.33
2 Persons	$77,208	$6,434.00
3 Persons	$86,845	$7,237.08
4 Persons	$101,798	$8,483.17

For each additional household member over four, an additional $11,100 can be added to the Annual Median Income.

Which Chapter to File When Facing a Car Repossession or Foreclosure

Chapter 7 provides no legal path to cure arrears on secured debts like mortgages or car loans. If you file Chapter 7 and you are behind on your car or mortgage payments, you risk losing your asset.

It’s been my experience that self-represented debtors frequently file Chapter 7 believing the automatic stay will permanently save their home from foreclosure or car from repossession. In reality, the automatic stay only provides a temporary delay, and creditors have the right to seek permission from the bankruptcy judge to lift or remove the stay. Only Chapter 13 can allow for catching up on missed payments on a car loan or mortgage.

Beyond curing defaults, Chapter 13 offers other options that are not available in Chapter 7. With the “cramdown,” car loan balances can be reduced to the current fair market value of the vehicle pursuant to Section 506(a), subject to the 910-day restriction under Section 1325(a).

For underwater first mortgages, an unsecured second mortgage and home equity lines of credit (HELOCs) may be removed partially or completely and treated as unsecured debt under Sections 506(a) and 1322(b)(2).

When You Should File for Bankruptcy

The timing of filing your bankruptcy petition is critical. Because the Means Test averages your income over a preceding six-month look-back period, a temporary spike in earnings, such as a one-time bonus, a higher-than-average commission, or an extra pay period in a month, can artificially inflate your Current Monthly Income and cause you to exceed Oklahoma’s median income threshold.

In those situations, filing should be delayed until that high-income month rolls off the six-month window, allowing your average income to return to normal levels; otherwise, you are obligated to file Chapter 13. For example, if a particularly high-earning month occurred four months ago, waiting three additional months ensures that month drops entirely out of the calculation period.

Conclusion

Passing the Oklahoma Means Test is a prerequisite to qualify for Chapter 7, but it is not the determining factor. Debtors must carefully evaluate asset values at fair market value and apply Oklahoma’s exemptions to determine whether any non-exempt equity exists.

Also, compare Schedules I and J to determine disposable income, and if you are currently behind on your auto loan or mortgage and intend to keep the collateral, Chapter 13 remains the chapter to file.

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.

Statutory References

• 11 U.S. Code §707 – Dismissal of a case or conversion to a case under chapter 11 or 13.
• Official Form 122A-1. Chapter 7 Statement of Your Current Monthly Income.
• Official Form 122A-2. Chapter 7 Means Test Calculation.
• 11 U.S. Code §101 – Definitions.
• 11 U.S. Code §341 – Meetings of creditors and equity security holders.
• 11 U.S. Code §506 – Determination of secured status.
• 11 U.S. Code §1325 – Confirmation of plan.
• 11 U.S. Code §1322 – Contents of plan.