The Means Test functions as a two-stage evaluation under 11 U.S.C. ยง 707(b). First, your annualized current monthly income is compared directly against the median income benchmark for a household of your size in Tennessee. If your household income falls at or below the state median, you automatically qualify for Chapter 7 relief without requiring further financial calculations.
If your income exceeds the Tennessee median benchmark, you proceed to the second phase of the test. Here, standardized IRS Collection Standards (local allowances for housing, utilities, and transportation) are subtracted from your monthly income. Our attorneys calculate these statutory expense deductions to determine