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Means Testing

Census Bureau, IRS Data and Administrative Expenses Multipliers

(Cases Filed Between October 15, 2007, and December 31, 2007, Inclusive)

 

Section I. Census Bureau Data

In Part III of Bankruptcy Form 22A and Part II of Bankruptcy Form 22C, debtors are instructed to enter the “Applicable median family income.” This information is published by the Census Bureau according to State and family size, and the data is updated each year. In addition, pursuant to 11 U.S.C. § 101(39A)(B), the data on this Web site will be further adjusted early each calendar year based upon the Consumer Price Index for All Urban Consumers (CPI).

The following link provides the median family income data published in August 2007, reproduced in a format that is designed for ease of use in completing these bankruptcy forms.

Median Family Income in 2006 Inflation Adjusted Dollars Based on State/Territory and Family Size

Section II. IRS Data

In Part V, Subpart A, of Bankruptcy Form 22A and Part IV, Subpart A, of Bankruptcy Form 22C, debtors are instructed to enter “National Standards” and “Local Standards.” This information is updated annually by the IRS. The following links provide the appropriate data, reproduced in a format designed for ease of use in completing these bankruptcy forms.

Note: The IRS expense figures posted on this Web site are for use in completing bankruptcy forms. They are not for use in computing taxes or for any other tax administration purpose. Expense information for tax purposes can be found on the IRS Web site.

1. National Standards. The National Standards are published by the IRS, and the table includes five (5) subcategories of expenses and their combined total. The National Standards are published by the number of persons and gross income level.

Part V, Subpart B, on Form 22A and Part IV, Subpart B, on Form 22C allow for a qualifying debtor to claim an additional food and clothing ("apparel and services") expense if the debtor’s average monthly food and clothing expense exceeds the combined allowances for those two subcategories, not to exceed five (5) percent. For purposes of these bankruptcy forms, the "Food" and "Apparel & services" subcategories have been combined and are provided as a separate line item, which is displayed together with the five (5) percent calculation of those two subcategories combined.

National Standards for Allowable Living Expenses (excluding Alaska & Hawaii)

Alaska - National Standards for Allowable Living Expenses

Hawaii - National Standards for Allowable Living Expenses (includes Guam, Puerto Rico, the Northern Mariana Islands, and the Virgin Islands for purposes of these bankruptcy forms)

NOTE: The IRS does not currently publish National Standards for Allowable Living Expenses for Guam, Puerto Rico, the Northern Mariana Islands, and the Virgin Islands. For purposes of these bankruptcy forms, these Commonwealths and Territories use the “Hawaii - National Standards for Allowable Living Expenses."

2. Local Standards. The Local Standards are published by the IRS and consist of two primary expense categories, "Housing and Utilities" and "Transportation."

a. Local Housing and Utilities Expense Standards - By State, County, and Family Size. The Housing and Utilities Standards are published by the IRS by State (including Guam, the Northern Mariana Islands, Puerto Rico, the Virgin Islands, and the District of Columbia), county, and family size. For purposes of these bankruptcy forms, the Housing and Utilities Standards are provided in two components -- non-mortgage expenses and mortgage/rent expenses.

b. Local Transportation Expense Standards - By Metropolitan Statistical Area and Census Region. The Transportation Standards are published by the IRS in two components. The Operating Costs & Public Transportation Costs component of the Transportation Standards is published by number of cars and by Metropolitan Statistical Area (MSA) and Census Bureau region. In order to use the data, you must determine in what Census Bureau region your state is located and whether your county is located in a MSA. The Ownership Costs component of the Transportation Standards is published on a national basis, by number of cars. This information, reproduced in a format designed for ease of use in completing these bankruptcy forms, is available at the following link.

NOTE: The IRS does not currently publish transportation standards for Guam, Puerto Rico, the Northern Mariana Islands, or the Virgin Islands. For purposes of these bankruptcy forms, the Virgin Islands and Puerto Rico are included with the Northeast Census Bureau Region, and Guam and the Northern Mariana Islands are included with the West Census Bureau Region.

Section III. Administrative Expenses Multipliers

11 U.S.C. § 707(b)(2)(A)(ii)(III) allows a debtor who is eligible for chapter 13 to include in his/her calculation of monthly expenses the actual administrative expenses of administering a chapter 13 plan in the judicial district where the debtor resides.

The Executive Office for U.S. Trustees issues the schedules of actual administrative expenses which contain, by judicial district, the chapter 13 multiplier needed to complete Official Bankruptcy Forms 22A and 22C (Statement of Current Monthly Income and calculations). Form 22A is the form most chapter 7 debtors will complete and the multiplier is entered on Line 45.b; Form 22C is the form most chapter 13 debtors will complete and the multiplier is entered on Line 50.b.

Schedules of Actual Administrative Expenses of Administering a Chapter 13 Plan (as Required by 11 U.S.C. § 707(b)(2)(A)(ii)(III))

 

Note:

The original source for the State Median Family Income is the Census Bureau.

The original source for the National and Local Standards is the IRS.

To report any differences between the data on these pages and their original source, please e-mail: ust.mt.help@usdoj.gov.

 

Thursday, February 21, 2013 4:50 PM