MEDIAN INCOME AND MEANS TEST
Effective November 1, 2016, if a single person in New York State has income in excess of $50,768 then they fail the Median Income Test and they must take the "Means Test" to determine whether they qualify to file for chapter 7 bankruptcy (liquidation of debts). For a family of 2 the income threshold for the Median Income Test is $65,233, for a family of 3 it is $74,925 and for a family of 4 it is $90,852. Add $8,400 for each individual in excess of 4.
To perform the Median Income Test, you need to determine your gross monthly income for the last 6 months, subtract Social Security and Victims of Terror payments, divide this figure by 6 and multiply the result by 12. This figure is your annualized current monthly income (CMI). Compare your annualized CMI to the applicable Median Family Income as provided above. If you fail the Median Income Test provided above, then you must take the “Means Test.” The “Means Test” is an extremely complex test consisting of 6 pages of calculations! In its simplest form you take your gross monthly income and subtract certain expenses based on the IRS National Standards, Local Standards and other actual expenses to calculate your Monthly Disposable Income. For more information, consult the United States Trustee's page on Means Testing.