You might be ready to ask real questions about bankruptcy, but the words “means test” stop you cold. Maybe you heard a friend say they “failed” the test. Maybe an online calculator hinted you earn too much, and now you are afraid to even talk to a lawyer. All of this lands on top of collection calls, past due notices, and the fear of losing your car or home.
If you live in Tulsa or the surrounding area, you are not alone in feeling that way. Many people we meet are working hard, sometimes at more than one job, and still cannot get ahead of credit cards, medical bills, or loans. They worry that their income disqualifies them from bankruptcy, even as they fall further behind every month. The means test looks like a wall, and they are trying to decide if it is worth climbing at all.
At The Colpitts Law Firm, our board certified Oklahoma bankruptcy attorneys run the means test for Tulsa families every day. We know how the federal formula works with Oklahoma’s specific median income numbers, and how local trustees review the forms and documents. In this guide, we walk through what the means test really does, how it is calculated, and what you can do to prepare, so you can make decisions based on facts instead of fear.
What the Bankruptcy Means Test Really Does for Tulsa Filers
The means test is a formula that Congress added to the Bankruptcy Code to decide who can file Chapter 7. Chapter 7 is the type of bankruptcy most people think of, where many unsecured debts can be wiped out in a matter of months. Lawmakers wanted a way to screen out people they believed had enough income to pay something back over time. The means test is that screening tool, not a judgment about your character or how hard you work.
For Tulsa residents, the means test compares your income against Oklahoma median income figures for households of different sizes. If your “current monthly income” is at or below the median for your household size, you are usually considered to pass the means test for Chapter 7, subject to other requirements. If it is above, the formula does not simply say no. Instead, it shifts to a second stage that subtracts allowed expenses to see how much disposable income is left on paper.
It helps to think of the means test as having two gates. The first gate is the comparison to Oklahoma median income. The second gate looks at your necessary expenses and secured debt payments. Many people in Tulsa assume that once their income is above median, the gate slams shut. In reality, plenty of our clients start above median and still qualify for Chapter 7 because their allowed expenses, household size, or secured debts reduce their disposable income.
The means test rules are federal, but they do not operate in a vacuum. They rely on state specific median income figures, IRS standards, and local practice. These numbers and interpretations change over time. As a firm that concentrates on Oklahoma bankruptcy, we track those changes and apply them every day in cases filed in the Northern District of Oklahoma, which includes Tulsa. That is one reason a conversation with a Tulsa based bankruptcy attorney often leads to very different conclusions than a quick online quiz.
How the Means Test Calculates Your Income in Oklahoma
The first surprise for most people is that the means test does not use your current paycheck or W-2 annual salary. It uses something called “current monthly income,” which is the average of the income you received in the six full calendar months before you file. That means timing matters. If you file in July, the test usually looks back at income from January through June, totals it up, and divides by six to get an average.
For Tulsa filers, this six month window can include regular wages, overtime, bonuses, commissions, side work, and many other sources of income. It can also include certain public benefits, business income, and rental income. Social Security benefits are generally excluded, which can make a big difference for retirees, disabled individuals, or households with mixed income. Many people make mistakes here by only thinking about their base pay and forgetting a bonus or a short term spike in overtime that inflates the average.
Consider a simple example. A Tulsa worker earns base pay that would normally average out to 4,000 dollars per month, but in March and April they worked heavy overtime and received two large overtime checks. If the six month window includes those months, their “current monthly income” might average out to 4,800 dollars instead of 4,000 dollars. If we adjust the filing date so that March and April drop out of the six month look back, the average might fall back closer to 4,000 dollars. That shift can determine whether the first gate of the means test appears open or closed.
Another common issue involves non filing spouses. If you are married and living together, the means test often requires us to look at your spouse’s income as well, even if only one of you plans to file bankruptcy. There are deductions for the portion of their income that goes to their separate obligations, but the starting point still matters. At The Colpitts Law Firm, we regularly review pay stubs and bank statements with clients to capture irregular income, non filing spouse contributions, and other details that online tools tend to miss or misclassify.
Because the six month period is rigid, yet your real life is not, planning the timing of a filing is one of the most useful tools an Oklahoma bankruptcy attorney brings to the table. In some Tulsa cases, we recommend waiting a month or two so that a bonus or short contract job falls out of the look back period. In other cases, waiting would not help and only makes the debt pressure worse. The key is understanding how the numbers will move before you file, not after.
Oklahoma Median Income & Why Household Size Matters in Tulsa
Once “current monthly income” is calculated, the means test compares your annualized figure to Oklahoma median income for your household size. Median income is simply the middle number in a list of incomes, so half of households earn less and half earn more. The U.S. Trustee publishes tables that show these medians by state and by household size. Tulsa filers use the Oklahoma figures, not national averages or numbers from another state.
Household size is more complicated than it sounds, and getting it wrong can push you above or below the median line. In general, it includes you, your spouse if you are living together, your children who live with you, and other dependents you support. Questions often come up about shared custody, adult children, roommates, and extended family. For example, if your niece lives with you and you support her, she might count for household size even though she is not your child. Miscounting household size is one of the most common mistakes we see when people try to run the test on their own.
Here is why this matters. For illustration only, imagine that the Oklahoma median income for a household of one is 50,000 dollars per year, for two it is 65,000 dollars, and for four it is 90,000 dollars. These are not current figures, but they show the concept. A single Tulsa filer earning 55,000 dollars annually would be above median in this example, while a family of four earning the same amount would be well below. The same total income can lead to very different results depending on how the household is counted.
If your annualized income is at or below the Oklahoma median for your household size, the means test usually presumes that you are eligible for Chapter 7, though other parts of the law still apply. If your income is above the median, you do not automatically lose the right to file Chapter 7. Instead, the test moves to the second gate, where we subtract allowed expenses to see what, if anything, is left as disposable income. At The Colpitts Law Firm, we work through these questions about household size and income with clients in Tulsa regularly, because an accurate count often changes the picture completely.
Median income tables also change several times a year. We often see people rely on an older article or a calculator that has not been updated, which leads them to believe they are above median when, in fact, the current Oklahoma threshold is higher. Our focus on Oklahoma bankruptcy law includes monitoring these updates and applying the right numbers for the month you plan to file, which keeps you from making decisions based on stale data.
Allowed Expenses: The Second Part of the Means Test
If your income is above the Oklahoma median for your household size, the means test does not stop. It shifts to a second, more detailed step that looks at your expenses. The idea is to subtract certain allowed expense amounts from your “current monthly income” to see how much disposable income remains. If there is little to nothing left on paper, you may still qualify for Chapter 7. If there is a meaningful amount left, the law may steer you toward a repayment plan under Chapter 13.
Many of these allowed expenses come from IRS National and Local Standards, which are tables of typical costs for categories such as food, clothing, housing, utilities, and transportation. In some categories, the test uses these standard amounts even if your real spending is a bit higher or lower. In other categories, especially secured debts and certain special costs, your actual payments matter. It is a mix of standard allowances and real numbers, and understanding which is which is critical.
Some common expense categories in the means test include:
- Housing and utilities, including rent or mortgage and basic services.
- Transportation costs, such as car ownership or lease payments, insurance, fuel, and maintenance.
- Taxes, including income and payroll taxes that are withheld from your pay.
- Health insurance and medical expenses, within certain limits or with documentation.
- Child care and support, such as day care or court ordered support obligations.
- Secured debt payments for things like your home or vehicle, subject to specific rules.
Imagine a Tulsa family whose income is slightly above the Oklahoma median, but they have a high mortgage payment, two car loans needed for work commutes, and significant out of pocket medical costs. On the surface, their income might suggest they can pay creditors. Once we plug in their allowed expenses, their “disposable income” could drop close to zero, changing the means test outcome. In another case, a renter with lower housing costs and no car payment might show more disposable income on paper, even with similar wages.
Because of these nuances, we spend time reviewing budgets line by line with our clients. Tulsa’s real cost of living, including commuting distances, housing, and insurance costs, often looks different from what a national article assumes. At The Colpitts Law Firm, we understand how those real world expenses fit into the allowed categories on the means test and where trustees expect to see documentation. That practical knowledge can be especially important for households that seem borderline at first glance.
What If You Do Not Pass the Chapter 7 Means Test in Tulsa?
Hearing that you “failed” the means test can feel like a door slamming shut, but that is rarely the full story. In simple terms, not passing the means test means that, after income and allowed expenses are calculated, there is enough disposable income on paper that the law presumes you should not be in Chapter 7. That presumption can sometimes be challenged, but more often, the analysis points us toward Chapter 13 as the main path to relief.
Chapter 13 is a reorganization, not a liquidation. Instead of wiping out eligible debts in a few months, you propose a payment plan that usually runs three to five years. The amount you pay each month is driven by your income, allowed expenses, secured debts, and priority debts such as certain taxes or support obligations. Many Tulsa families who do not pass the Chapter 7 means test still achieve real relief in Chapter 13, catching up on house or car payments, stopping garnishments, and discharging remaining unsecured debts at the end of the plan.
There are also situations where the timing or your life circumstances change enough that it makes sense to revisit the means test later. A job loss, reduced hours, a new dependent, or the end of a temporary high paying contract can all shift the six month income average or your expenses. In some cases, we may advise a Chapter 13 now and evaluate a possible conversion to Chapter 7 if your situation changes. In others, we may recommend adjusting the filing date so that a one time spike in income no longer appears in the six month window.
The key point is that an online calculator’s red “fail” message is not the final word on your options in Tulsa. At The Colpitts Law Firm, we regularly help people who believed they had no path to Chapter 7 or meaningful relief, only to find that a more careful application of the means test or a Chapter 13 plan provides a way forward. We cannot promise any particular outcome, but we do commit to reviewing your numbers thoroughly and explaining your options clearly so you can make an informed choice.
Documents You Need for a Tulsa Bankruptcy Means Test
The means test is only as accurate as the information that goes into it. One of the most helpful steps you can take before meeting with a Tulsa bankruptcy attorney is gathering the documents that show your income and key expenses. You do not need to have everything perfectly organized, but the more complete your records, the more precise our analysis can be. Many people are surprised to learn how much of the test is careful math backed by paperwork.
For most individuals and families in Tulsa, we typically ask for:
- Pay stubs or income statements for the last six full calendar months for you and, if applicable, your spouse.
- Recent federal tax returns, usually the last two years.
- Bank statements that cover the same period, especially if you receive income by direct deposit or from gig work.
- Mortgage statements or lease agreements that show your housing costs.
- Car loan or lease statements, including balances and monthly payments.
- Documentation of other income, such as child support received, business income, or rental income.
- Proof of major ongoing expenses, like child care, health insurance premiums, or court ordered support payments.
If you are self employed, do seasonal work, or receive cash income, we will talk about how you track that money. Sometimes bank deposits, invoices, or simple handwritten logs help us reconstruct the six month income picture. The goal is not to judge or criticize your record keeping. Our goal is to turn your real income and expense patterns into accurate numbers on the means test forms that the trustee and court will review.
Trustees in the Northern District of Oklahoma generally want to see documentation that supports the numbers on your means test and schedules. Missing or inconsistent documents can lead to questions or delays. During a free consultation at The Colpitts Law Firm, we use the documents you bring to run a tailored means test calculation, then identify any gaps we need to fill before filing. You do not need to wait until your files are perfect to speak with us. Starting the conversation sooner often makes it easier to track down what is missing.
Common Means Test Mistakes We See From Tulsa Residents
By the time many people reach our office, they have already tried one or more online means test tools. They may have filled out a worksheet from a national website or spoken with someone who does not practice in Oklahoma. These efforts are understandable, but they often produce misleading results because the test is less intuitive than it seems. Knowing the most common mistakes can help you avoid drawing the wrong conclusions about your options.
A frequent error is using an annual salary from a W-2 or pay stub instead of calculating “current monthly income” based on the last six full calendar months. Someone in Tulsa who earns a 60,000 dollar salary but had several months of reduced hours or unpaid time off might have a six month average well below what their salary suggests. The opposite is also true, where heavy overtime for a few months makes their income appear higher than it normally would be. Online tools rarely explain how to adjust for these swings, but our board certified bankruptcy attorneys deal with them regularly in Oklahoma cases.
Miscounting household size is another problem. People often exclude a non working spouse, adult children, or other dependents because they think of “household” as only those who bring in income. The means test, however, focuses on who lives with you and who you support. Misclassifying Social Security benefits as income that gets counted is also common and can artificially push your numbers above median. On the expense side, many people underreport allowed expenses because they do not realize certain costs, like necessary child care or some medical expenses, can be included within the rules.
Finally, we see Tulsa residents place too much weight on generic advice that ignores Oklahoma specifics. A blog written for another state might use different median income numbers, different housing cost assumptions, or describe trustee practices that do not apply here. Some non local attorneys who handle only occasional bankruptcy work may not stay current on our state’s median income updates or local expectations about documentation. At The Colpitts Law Firm, where our work centers on Oklahoma bankruptcy, we have seen these patterns in real cases and know how they play out with local trustees, which helps us spot and correct issues before they become obstacles.
How The Colpitts Law Firm Guides You Through the Means Test
Working through the means test on your own can feel like trying to solve a moving puzzle while the bills pile up. Our role at The Colpitts Law Firm is to take that burden off your shoulders. In a free consultation, we sit down with you, review your income and expense documents, and run the means test based on real numbers, not guesses. We then explain what the results mean for Chapter 7 eligibility and what a Chapter 13 plan might look like if that is the better route.
Because our practice is built around Oklahoma bankruptcy law, we understand how the federal rules interact with Oklahoma median income figures and local trustee expectations. Whether you are a single filer in Tulsa, a married couple with children, or a household with mixed income sources, we tailor our analysis to your situation. We do not stop at a pass or fail label. We talk about timing, household size, expenses, and chapter choice as parts of an overall plan to regain control of your finances.
Throughout the process, our client centered approach means you get clear explanations, not just numbers on a form. If the test points toward Chapter 7, we walk you through what that case would involve. If Chapter 13 is the better fit, we outline how a repayment plan could help you catch up on secured debts while still working toward a discharge of remaining unsecured debt. Either way, you leave the consultation with a concrete understanding of your options in Tulsa, not guesses based on generic online tools.
If you are worried about the bankruptcy means test in Tulsa, you do not have to decode it alone. We invite you to contact The Colpitts Law Firm to schedule a free consultation, bring what documents you have, and let us help you see what the means test really says about your options.
