Chapter 7 Means Test Nevada

To file for Chapter 7 bankruptcy, you must pass the Chapter 7 means test Nevada requires — a two-step income analysis designed to ensure Chapter 7 is reserved for those who genuinely need it. Most Nevada filers qualify, but understanding the thresholds helps you know where you stand before filing.

Chapter 7 Means Test Step 1: Compare Your Income to the Nevada Median

The first step is straightforward: calculate your average monthly income over the last six calendar months and compare it to Nevada’s median income for a household your size. If your income is at or below the median, you automatically pass the means test and qualify for Chapter 7. No further calculation is needed.

Nevada’s median income figures are updated every six months by the U.S. Trustee Program based on Census data. During your free consultation, Dan Riggs will pull the current figures and run the calculation for your household size on the spot. As a general guide, Nevada’s median income thresholds are in the range of $60,000–$70,000 for single-person households and higher for larger households — contact us for current amounts.

Chapter 7 Means Test Step 2: Full Expense Calculation

If your income is above the Nevada median, you move to Step 2 — the full means test. This calculation subtracts certain allowed monthly expenses from your income to determine your “disposable income.” The allowed expenses include both IRS standard expense allowances (for things like food, clothing, housing, and transportation) and actual expenses for certain categories (like secured debt payments, taxes, and health insurance).

If the calculation shows you have little or no disposable income after allowed expenses, you pass the means test and can file Chapter 7. Many people with incomes above the median still qualify once their actual expenses are properly accounted for. This is where having an experienced attorney makes a significant difference — knowing which expenses are allowed and how to document them correctly can determine whether you qualify.

What Counts as Income for the Means Test?

The means test uses your average monthly income over the six full calendar months before your filing date — not your current income. Sources that count include wages and salary, self-employment income, rental income, pension and retirement distributions, regular contributions from household members, unemployment compensation, and most other regular income. Social Security income and VA disability are excluded from the means test calculation, which is a significant benefit for many Nevada retirees.

What If You Don’t Pass the Chapter 7 Means Test?

If the means test shows you have too much disposable income to file Chapter 7, you still have options. Chapter 13 bankruptcy is available to virtually anyone with a regular income, regardless of means test results. Chapter 13 allows you to repay a portion of your debt over three to five years while keeping all of your property and stopping all collection activity immediately through the automatic stay.

In some cases, a “presumption of abuse” can be rebutted by demonstrating special circumstances — such as a serious medical condition, job loss, or other unusual expense that the standard calculation doesn’t fully capture. Dan Riggs will identify whether any special circumstances apply to your situation.

Means Test Timing Strategy

Because the means test uses a six-month lookback window, timing your filing can matter. If your income dropped significantly due to a job loss, layoff, or pay cut, waiting until the higher-income months fall outside the six-month window may improve your result. Dan Riggs will advise you on the optimal filing timing for your situation.

The U.S. Courts Chapter 7 guide provides additional background on means test requirements. Our Chapter 7 bankruptcy Las Vegas page covers the full filing process after you qualify.

Frequently Asked Questions About the Chapter 7 Means Test in Nevada

Does Social Security income count toward the means test?

No. Social Security benefits are excluded from the means test income calculation. If Social Security is your primary or only income, you will almost certainly pass the means test regardless of the amount.

What if my income just dropped — do I use my old income or my current income?

The means test uses your average income over the six full calendar months before your filing date — not your income on the day you file. If your income recently dropped significantly, timing your filing carefully may allow you to qualify for Chapter 7 sooner. Dan Riggs will run the calculation for you and advise on timing.

Can I still file Chapter 7 if I fail the means test?

In most cases, no — if the means test shows a presumption of abuse and no special circumstances apply, Chapter 7 is not available. However, Chapter 13 remains available and provides many of the same benefits, including the automatic stay, debt discharge at the end of the plan, and protection of your assets.

How long does the means test calculation take?

Dan Riggs can typically complete the means test calculation during your free initial consultation using your last six months of pay stubs or bank statements. In most straightforward cases, you’ll know within minutes whether you qualify for Chapter 7.

Not sure if you qualify for Chapter 7? Dan Riggs will run the means test calculation for free during your consultation. Schedule your free consultation or call 702-605-5070. No judgment. No pressure. Just answers.