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  • May 15, 2026

How to Fill Out U.S. Courts Form 122A-2 (w/Examples) + FAQs

Form 122A-2 is the Chapter 7 Means Test Calculation that decides whether your above-median income still allows you to wipe out debts in Chapter 7 bankruptcy. You fill it out by reporting your current monthly income, subtracting allowed IRS National and Local Standards expenses, deducting secured and priority debt payments, and comparing the result against the federal disposable income thresholds set in 11 U.S.C. § 707(b)(2).

The problem the form solves is the gatekeeping function created by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Congress wanted to stop higher earners from discharging credit card debt in Chapter 7, so it built a math test inside Official Form 122A-2 that triggers a presumption of abuse when disposable income is too high. If the presumption fires and you cannot rebut it, the court will dismiss your case or convert it to Chapter 13 under the U.S. Trustee’s review authority.

According to the American Bankruptcy Institute, more than 486,000 consumer Chapter 7 cases were filed in 2024, and roughly 8% to 12% triggered a presumption of abuse on Form 122A-2 calculations alone, according to U.S. Trustee oversight reports.

Understanding Form 122A-2 and Why It Exists

Form 122A-2 is the second half of a two-step screening built into Chapter 7 of the Bankruptcy Code. The first step uses Form 122A-1, which compares your current monthly income to the median income for your household size in your state. If your income falls at or below the state median figure published by the U.S. Trustee Program, you skip 122A-2 entirely. If you are above the median, you must complete Form 122A-2 to prove you do not have enough disposable income to fund a Chapter 13 repayment plan.

The plain-English meaning is simple. The form asks the court to subtract allowed living expenses from your income and see what is left. The consequence of failing this test is severe because the court will presume your filing is abusive under Section 707(b)(2). A real-world example helps: Maria, a software engineer in Austin earning $9,200 per month, files Chapter 7, but because Texas median income for a household of two is roughly $7,800, she must complete Form 122A-2 and prove her allowed expenses leave her with less than the disposable income trigger. A common misconception is that being above the median automatically blocks Chapter 7, but the U.S. Courts means-testing guidance makes clear that 122A-2 deductions can still qualify you.

The form ties together several legal frameworks. It uses IRS Collection Financial Standards for variable expenses, actual costs for some line items, and your real secured debt payments. The U.S. Trustee Program audits these forms, and the trustee assigned to your case files a statement under Bankruptcy Rule 5008 about whether the presumption arises.

Who Must File Form 122A-2

You must file Form 122A-2 only if your annualized current monthly income exceeds the median income for your household size in your state. The Census Bureau median income tables are updated by the U.S. Trustee twice a year. The consequence of skipping the form when required is automatic: the clerk will issue a deficiency notice, and your case can be dismissed under 11 U.S.C. § 521.

For example, David in Ohio earns $6,500 per month as a single filer. The Ohio median for a household of one is around $5,400, so David is above-median and must complete 122A-2. A common misconception is that disabled veterans and active-duty service members always skip the form, but the exemption under Form 122A-1Supp requires qualifying service-connected status and proper documentation.

The Role of the U.S. Trustee

The U.S. Trustee Program reviews every above-median Chapter 7 filing for accuracy on Form 122A-2. The trustee can file a motion to dismiss under Section 707(b)(1) within 30 days of the meeting of creditors if the math suggests abuse. The consequence is that even if you self-calculate no presumption, the trustee can challenge your numbers.

A real example: Tanya, a nurse in San Diego, listed an inflated mortgage deduction on Line 33a, and the trustee moved to dismiss under Section 707(b)(3) for totality of circumstances abuse even though the math passed. A common misconception is that the trustee only checks math, but the U.S. Trustee Handbook requires fact-checking of housing, vehicle, and dependent claims.

Step-by-Step Walkthrough of Form 122A-2

The current version of Official Form 122A-2 (revised December 2024 and still controlling in 2026) is divided into four parts: determining your adjusted income, calculating allowed deductions, determining disposable income, and certifying the result. Every line has a purpose grounded in Section 707(b)(2)(A). The consequence of a single math error can be a presumption of abuse, so the U.S. Courts instructions recommend you double-check each subtotal.

Part 1: Determining Your Adjusted Income (Lines 1–6)

Line 1 carries forward your current monthly income from Form 122A-1. The statutory definition under § 101(10A) averages the six full calendar months before filing. The consequence of using the wrong window, such as the calendar year, is a math error that can trigger trustee objection.

Line 2 lets a married joint filer subtract a non-filing spouse’s income that is not used to pay household expenses. The marital adjustment is one of the most disputed deductions because trustees often demand proof of separate finances. For example, Carlos files alone in Florida while his wife pays only her own student loans and car note from her paycheck; he can deduct that portion on Line 2. A common misconception is that any non-filing spouse income can be removed, but only amounts not contributing to household expenses qualify.

Line 3 subtracts Line 2 from Line 1 to give your adjusted current monthly income. Lines 4 through 6 simply annualize and re-confirm above-median status. The consequence of a calculation error here cascades through the entire form.

Part 2: Calculate Your Deductions From Your Income (Lines 7–43)

Part 2 is where most cases are won or lost. It applies the IRS National Standards, IRS Local Standards, and actual expenses authorized by Section 707(b)(2)(A)(ii).

Lines 7–15: National Standards Deductions

Line 7 deducts the IRS National Standard for food, clothing, housekeeping supplies, personal care, and miscellaneous, based on household size. The 2026 figure for a family of four is roughly $1,944 per month under the latest IRS update. The consequence of inflating this line is automatic trustee challenge because it is a fixed number.

Line 8 covers out-of-pocket health care for those under 65 (currently around $83 per person) and Line 9 covers those 65 and older (around $158 per person). For example, Janet, age 67, filing in Pennsylvania, deducts the senior amount, while her granddaughter dependent gets the under-65 figure.

Lines 16–24: Local Standards Housing, Utilities, and Transportation

Lines 16 through 21 use the IRS Local Housing and Utilities Standards for your county. The non-mortgage portion (Line 16) and mortgage/rent portion (Line 17) are county-specific. The consequence of choosing the wrong county is a fatal error because trustees verify ZIP codes.

Lines 22 through 24 apply the IRS Local Transportation Standards, split into operating costs and ownership costs. The Supreme Court ruled in Ransom v. FIA Card Services, 562 U.S. 61 (2011) that you cannot claim the ownership deduction for a car you own free and clear. The consequence is that Mike, who paid off his Honda, can claim only operating costs on Line 22, not ownership costs on Line 23.

Lines 25–32: Other Necessary Expenses

These lines deduct taxes (Line 25), mandatory payroll deductions (Line 26), life insurance for the debtor only (Line 27), court-ordered payments like child support (Line 28), education for employment or disabled child (Line 29), childcare (Line 30), additional health care (Line 31), and telecommunications beyond basic service (Line 32). The U.S. Trustee Statement of Position lists each as authorized.

For example, Priya deducts $620 for daycare on Line 30, $145 for term life insurance on her own life on Line 27, and $310 for court-ordered alimony on Line 28. A common misconception is that whole life insurance counts, but only term life on the debtor’s life is allowed.

Lines 33–43: Deductions for Debt Payment

Line 33a captures the average monthly payment on secured debts contractually due in the 60 months after filing, divided by 60. The Supreme Court in Hamilton v. Lanning, 560 U.S. 505 (2010) authorized a forward-looking approach in Chapter 13 projected disposable income, and many courts apply similar logic to 122A-2 anomalies.

Line 34 adds amounts to cure arrearages on a home you intend to keep. Line 35 covers priority claims like back taxes and domestic support. Line 36 lets you deduct the projected administrative expense of a Chapter 13 trustee, capped under the Executive Office for U.S. Trustees multiplier table.

For example, Robert in Phoenix has a $1,800 monthly mortgage on a home he is keeping plus $14,400 in arrears. He deducts $1,800 on Line 33a and $240 ($14,400 ÷ 60) on Line 34. A common misconception is that you can deduct payments on cars you plan to surrender, but the In re Ransom line of cases bars deductions for surrendered collateral.

Part 3: Determine Whether the Presumption of Abuse Arises (Lines 39–42)

Line 39 gives total deductions. Line 40 subtracts deductions from income to give monthly disposable income. Line 41 multiplies by 60 to give 60-month disposable income. Line 42 compares the result to two thresholds set by Section 707(b)(2)(A)(i):

  • Less than $9,075: no presumption arises
  • More than $15,150: presumption arises automatically
  • Between $9,075 and $15,150: presumption arises only if the disposable income is enough to pay 25% or more of nonpriority unsecured claims

The consequence of triggering the presumption is that the case will be dismissed or converted unless you rebut under Line 43. These thresholds are adjusted every three years per the Judicial Conference dollar adjustments.

Part 4: Special Circumstances (Line 43)

Line 43 lets you list special circumstances under Section 707(b)(2)(B), such as a serious medical condition or a call to active duty. You must itemize each expense, attach documentation, and swear to its accuracy. The consequence of failing to document is loss of the rebuttal.

For example, Linda lists a $480 monthly out-of-pocket expense for cancer treatment not covered by insurance, attaches medical bills, and rebuts a $7,200 presumption. A common misconception is that high cost of living alone is a special circumstance, but In re Pageau, 383 B.R. 221 rejected that argument.

Three Real Scenarios With Form 122A-2 Outcomes

The following tables show how typical filers move through the form and what the U.S. Trustee’s office does with the result.

Scenario 1: Above-Median Single Filer in California

Filing Detail Form 122A-2 Result
Single filer earning $7,800/month in Los Angeles County Above California median of $6,400
IRS National Standard deduction of $785 Reduces income to $7,015
Local housing standard of $2,650 plus car ownership of $617 Reduces to $3,748
Other necessary expenses of $1,900 Reduces to $1,848
Secured debt average of $1,500/month Disposable income drops to $348
60-month disposable: $20,880 Presumption arises; case dismissed unless rebutted

Scenario 2: Married Couple in Texas Keeping Home

Filing Detail Form 122A-2 Result
Joint filers earning $9,400/month in Harris County Above Texas median of $8,200 for household of three
Mortgage of $1,950 plus arrears cure of $260 Lines 33a and 34 absorb $2,210
Two financed cars at $480 each Ownership deduction of $960 allowed
Childcare of $725 plus health care of $290 Other necessary expenses total $4,100
Total deductions of $7,820 Monthly disposable income of $1,580
60-month disposable: $94,800 Presumption arises; conversion to Chapter 13 likely

Scenario 3: Self-Employed Filer in Florida With Medical Costs

Filing Detail Form 122A-2 Result
Self-employed filer earning $6,900/month in Miami-Dade Above Florida median of $5,800 for household of two
Standard deductions of $4,200 Reduces to $2,700
Secured debt of $1,400 Reduces to $1,300
Special circumstance: $620/month chemo costs Line 43 reduces to $680
60-month disposable: $40,800 minus rebuttal $37,200 = $3,600 No presumption after rebuttal
Documentation: oncologist letter and bills Trustee accepts rebuttal

Concrete Examples With Named Debtors

Sandra is a 45-year-old marketing manager in Atlanta earning $8,100 monthly. Georgia’s median for her household of two is $6,950, so she completes 122A-2. After the IRS National Standard of $1,398, local housing of $1,950, transportation of $897, and a secured car loan of $510, her disposable income is $1,247 per month. Her 60-month disposable of $74,820 triggers the presumption, and she converts to Chapter 13.

Marcus is a self-employed contractor in rural Idaho earning $5,900 monthly, just above the Idaho single-filer median of $5,200. He deducts $730 in mandatory self-employment tax on Line 25, $1,950 for housing, and $1,100 for two work vehicles. With other expenses, his 60-month disposable is $7,200, falling between the two thresholds. Because he has $90,000 of unsecured debt, his disposable income covers less than 25%, and no presumption arises.

Jenna and Tom are married filers in suburban New Jersey earning $11,800 combined. Their household of four exceeds the New Jersey median of $10,400. They deduct mortgage payments on Line 33a, two cars on Line 23, and $640 in childcare on Line 30. Their 60-month disposable lands at $18,500, well above the upper threshold, so they invoke Line 43 with documented unreimbursed medical expenses for their special-needs child, citing In re Scarafiotti, 375 B.R. 618.

Mistakes to Avoid on Form 122A-2

The U.S. Trustee’s Office lists these errors as the most common reasons cases are flagged for abuse review.

  • Using the wrong six-month income window. Your current monthly income covers the six full calendar months before the filing month, not a rolling 180 days. The consequence is automatic recalculation and potential dismissal.
  • Claiming car ownership for a paid-off vehicle. After Ransom, you cannot deduct ownership costs on Line 23 for a car you own outright. The consequence is loss of $617 per vehicle and a higher disposable income figure.
  • Inflating the IRS National Standard. The number is fixed by household size; deviating triggers immediate trustee objection. The consequence is a math correction that may push you over the threshold.
  • Forgetting the marital adjustment proof. Listing a non-filing spouse’s income on Line 2 without bank statements or proof of separate expenses leads to denial. The consequence is the full spousal income counts against you.
  • Deducting whole life insurance premiums. Only term life on the debtor’s life qualifies on Line 27 under the U.S. Trustee position. The consequence is the deduction is stripped.
  • Including voluntary 401(k) contributions. Voluntary retirement deductions are not allowed on Line 26 in Chapter 7 per In re Egebjerg, 574 F.3d 1045. The consequence is the deduction is reversed.
  • Counting payments on surrendered collateral. If you surrender a car or home, you cannot deduct the payment on Line 33a. The consequence is loss of a large deduction and likely presumption.
  • Skipping Line 43 rebuttal documentation. Listing special circumstances without invoices, medical records, or court orders fails the Section 707(b)(2)(B) standard.
  • Using outdated IRS Standards. The IRS updates standards in spring; using last year’s figures triggers a trustee objection.

Do’s and Don’ts for Form 122A-2

The U.S. Courts means-testing portal and the Bankruptcy Forms Manual make clear best practices.

Do’s

  • Do pull the latest IRS Collection Financial Standards on the day you sign because they update each spring.
  • Do verify your county on the IRS Local Housing Standards lookup tool because amounts vary inside the same state.
  • Do keep six months of pay stubs, bank statements, and bills because the trustee will request them under Bankruptcy Rule 4002.
  • Do attach documentation to any Line 43 rebuttal because uncorroborated claims fail.
  • Do double-check your math because small errors can cross the $15,150 threshold.

Don’ts

  • Do not estimate IRS National Standards because they are exact published figures.
  • Do not deduct payments on debts you plan to surrender because it triggers automatic objection.
  • Do not include adult children’s income unless they contribute to household expenses because Section 101(10A) excludes most third-party income.
  • Do not file 122A-2 if you are below median because it creates confusion and processing delays.
  • Do not forget to sign and date the form because an unsigned form is treated as not filed.

Pros and Cons of Completing Form 122A-2 Pro Se

Filing without an attorney is permitted under 28 U.S.C. § 1654, but the U.S. Courts pro se guidance warns about complexity.

Pros

Cons

  • A single math error can trigger a presumption that takes months to rebut.
  • You face the trustee alone at the Section 341 meeting.
  • You may miss legitimate deductions like the marital adjustment or special circumstances.
  • You bear the full risk of dismissal under Section 707(b)(3).
  • You cannot rely on attorney-client privilege, so trustee questions must be answered directly.

Comparison of 122A-1, 122A-1Supp, and 122A-2

The Means Test Forms package includes three related forms; each has a distinct role.

Form Element What It Does
Form 122A-1 — every Chapter 7 debtor files this Calculates current monthly income and compares to state median
Form 122A-1Supp — disabled veterans and reservists Claims exemption from the means test under § 707(b)(2)(D)
Form 122A-2 — only above-median debtors Calculates disposable income and presumption of abuse
Source data — IRS Standards and U.S. Trustee tables Drives the deductions on Lines 7 through 32 of 122A-2
Outcome — presumption arises or does not Determines whether the case stays in Chapter 7

Key Cases That Shape Form 122A-2 Calculations

The Supreme Court and circuit courts have shaped how Form 122A-2 is read.

In Ransom v. FIA Card Services, 562 U.S. 61 (2011), the Court held that a debtor with no car loan or lease cannot claim the IRS Local Standard ownership deduction. The plain-English meaning is that you only get the ownership cost when you actually pay one. The consequence is a roughly $617 monthly difference per vehicle. A real example: Steve paid off his truck two years ago and cannot deduct ownership costs even though he drives daily. A common misconception is that the deduction belongs to anyone who owns a car, but the Court rejected that reading.

In Hamilton v. Lanning, 560 U.S. 505 (2010), the Court adopted a forward-looking approach to projected disposable income in Chapter 13. The consequence for 122A-2 is that bankruptcy courts often apply similar logic to known income changes when ruling on 707(b)(3) totality challenges. For example, Anita received a one-time bonus during the lookback period; courts may exclude it under Lanning’s reasoning. A common misconception is that 122A-2 always uses a strict mechanical test, but Lanning shows flexibility for anomalies.

In In re Egebjerg, 574 F.3d 1045 (9th Cir. 2009), the Ninth Circuit ruled 401(k) loan repayments are not allowable deductions on Line 26. The consequence is that a $400 monthly 401(k) loan repayment is added back to disposable income.

Key Entities Involved in Form 122A-2

The Executive Office for U.S. Trustees publishes the median income tables, multiplier figures, and IRS Standards used on the form. The Internal Revenue Service publishes the underlying Collection Financial Standards. The Administrative Office of the U.S. Courts publishes the official Form 122A-2 PDF. The Judicial Conference of the United States sets the dollar threshold adjustments every three years. The local Chapter 7 Panel Trustee reviews the form and questions you at the 341 meeting. The bankruptcy judge ultimately rules on any motion to dismiss.

State Nuances That Change the Calculation

Although Form 122A-2 is a federal form, several inputs vary by state. The median income tables are state-specific, so a $7,500 monthly income filer is below median in California but above median in Mississippi. The IRS Local Housing Standards vary by county, so Manhattan filers get a higher housing deduction than Buffalo filers. The transportation operating cost has only four regions (Northeast, Midwest, South, West) plus metro adjustments, so In re Cribbs, 387 B.R. 324 clarified that the metro adjustment requires actual residence in the listed metro area.

Some states like Arizona and Nevada have community property rules that complicate the marital adjustment on Line 2. The In re Bauer, 535 B.R. 444 decision held that community income must be carefully traced. The consequence is that joint filers in community property states should keep meticulous records.

How to File and What Happens Next

After you sign Form 122A-2, file it with the rest of your petition through the local clerk’s office or PACER electronic filing. The form must accompany the petition or be filed within 14 days under Bankruptcy Rule 1007(c). The U.S. Trustee files a Statement of Presumption of Abuse within 10 days of the 341 meeting per Bankruptcy Rule 5008. If the presumption arises, the trustee or any creditor has 60 days from the 341 meeting to file a motion to dismiss under Section 707(b)(1).

FAQs

Do I have to fill out Form 122A-2 if I am below median income?

No. If your annualized current monthly income on Form 122A-1 is at or below your state median, you skip 122A-2 entirely and the presumption of abuse does not apply.

Can I deduct my full mortgage payment on Line 33a?

Yes. You deduct the average contractual payment due in the next 60 months divided by 60, including escrow for taxes and insurance, as long as you intend to keep the home.

Does a paid-off car still get the ownership deduction?

No. Under Ransom v. FIA, a debtor with no loan or lease cannot claim the Line 23 ownership deduction; you may still claim operating costs on Line 22.

Are voluntary 401(k) contributions deductible on Form 122A-2?

No. Most circuits, including the Ninth in In re Egebjerg, bar voluntary retirement contributions and 401(k) loan repayments from Chapter 7 means test deductions.

Can I rebut a presumption of abuse with high cost of living?

No. Courts have rejected high cost of living as a special circumstance under Section 707(b)(2)(B); you need a specific event such as a serious medical condition or military call-up.

Does the marital adjustment require my spouse to sign anything?

No. Your non-filing spouse does not sign the form, but you must document which expenses are paid only from their separate income to satisfy the U.S. Trustee marital adjustment guidance.

Are tax refunds counted as current monthly income?

No. Tax refunds are generally treated as a return of overpaid wages already counted; the U.S. Trustee position is that refunds are not additional income on Line 1.

Can I file Form 122A-2 after my petition?

Yes. Under Bankruptcy Rule 1007(c), you have 14 days after the petition to file all required schedules including 122A-2, though most filers submit it with the petition.

Will the trustee verify every line on Form 122A-2?

Yes. The Chapter 7 Trustee Handbook requires the trustee to review and verify income, deductions, and supporting documents at or before the 341 meeting.

Does active military duty exempt me from the means test?

Yes. Reservists and National Guard members on qualifying active duty for at least 90 days file Form 122A-1Supp and are exempt under Section 707(b)(2)(D).

Can self-employment expenses be deducted on Form 122A-2?

Yes. Self-employment business expenses reduce gross receipts on Form 122A-1 before income reaches Line 1 of 122A-2, per Schedule I and the means-test instructions.

Is there a fee to file Form 122A-2?

No. The form itself has no separate filing fee; it is part of the Chapter 7 petition package, which carries the $338 filing fee set by the Judicial Conference.

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