Manually calculating bankruptcy means tests requires tedious analysis of pay stubs, complex YTD income calculations across multiple months, and cross-referencing state-specific median income thresholds. Attorneys and paralegals spend hours performing arithmetic, tracking deduction eligibility, and ensuring compliance with current filing date requirements—all while risking calculation errors that could jeopardize case eligibility.
Calculating the bankruptcy means test is time-consuming and error-prone, requiring precise YTD income adjustments, six-month lookback period analysis, and state-specific median income comparisons. Manual calculations across multiple pay stubs with varying pay periods create opportunities for costly mistakes that could jeopardize client eligibility or invite trustee scrutiny.
CaseMark automatically processes pay stub data, calculates year-to-date income adjustments for the exact six-month window, applies allowable deductions, and compares results against current state median income thresholds. Get instant, accurate means test determinations with complete calculation breakdowns for court filing and client review.
This workflow is applicable across multiple practice areas and use cases
Family law attorneys use means test calculations to determine bankruptcy eligibility for divorcing clients, assess income for support obligations, and evaluate whether a spouse should file bankruptcy before or after divorce proceedings.
Divorce and bankruptcy frequently intersect, requiring family law attorneys to understand Chapter 7 eligibility and accurate income calculations that mirror support obligation methodologies using pay stubs and six-month lookback periods.
Estate planning attorneys use means test calculations to assess clients' financial eligibility for bankruptcy as an alternative to estate planning strategies, particularly when clients face overwhelming debt that would consume estate assets.
Estate planners frequently encounter clients with significant debt issues who may need bankruptcy relief before or instead of traditional estate planning, requiring accurate means test analysis to advise on Chapter 7 eligibility.
Financial services attorneys advising creditors and lenders use means test calculations to evaluate debtor eligibility for Chapter 7 discharge and assess the likelihood of successful bankruptcy filings by borrowers.
Creditor-side attorneys in financial services need to understand means test calculations to predict bankruptcy outcomes, negotiate settlements, and advise clients on collection strategies based on debtor Chapter 7 eligibility.
CaseMark automatically adjusts YTD calculations based on your specific filing date to capture exactly six full calendar months of income. For example, if filing in October 2025, it analyzes income from April 1 through September 30, adjusting pay stub data to exclude any amounts outside this window. The system handles weekly, bi-weekly, monthly, and irregular pay schedules seamlessly.
The system automatically identifies and deducts mandatory withholdings including federal tax, state tax, Social Security, and Medicare from gross income calculations. These deductions are extracted directly from your pay stub uploads and applied consistently across the six-month calculation period to determine accurate average monthly income.
CaseMark uses the most current median income data effective for cases filed on or after May 15, 2025, covering all 50 states and U.S. territories. The system automatically applies the correct threshold based on your client's state and household size, including the $11,100 adjustment for households larger than four people.
Yes, when YTD information is not available, CaseMark can calculate income based on individual paychecks and payment frequency (weekly, bi-weekly, monthly, etc.). The system extrapolates six-month income totals from available pay data while clearly documenting the calculation methodology for court review and trustee inquiries.
CaseMark clearly identifies whether your client falls under or over the applicable state median, providing the complete calculation breakdown needed for either Chapter 7 qualification or to proceed with the full means test analysis required for over-median filers. The detailed output supports your strategic decision-making about which bankruptcy chapter to recommend.