You were told you “failed” the bankruptcy means test and have to spend the next five years repaying debt in Chapter 13, but your paychecks do not look anything like the income number that showed up on that form. Maybe you drive for Uber around Chicago on weekends, pick up seasonal work in construction, or rely on tips in a River North restaurant. None of it feels steady, yet the means test somehow decided you earn too much for Chapter 7.
That disconnect leaves people confused and angry. They feel like they are being punished for a couple of good months, a bonus, or holiday overtime, even though they are now back to scraping by. Many Chicago filers assume that once a calculator, software program, or preparer says they fail the means test, the result is final and their only option is a long Chapter 13 plan. In reality, for people with irregular income, the way those numbers were averaged often matters far more than they are told.
At Attorney Joseph P. Doyle, we regularly review means test calculations for Chicago workers with gig, union, hospitality, and seasonal income. We see many situations where the math was done, but the wrong months, wrong income categories, or wrong assumptions were used, which pushed someone toward Chapter 13 when Chapter 7 was actually possible. In this guide, we explain how means test income errors happen, why they matter for chapter choice, and how careful timing and analysis can change your options.
Why So Many Chicago Filers Get Misled By Means Test Results
On paper, the means test looks simple. You plug in six months of income, the form spits out an average, and you compare that number to the Illinois median income for your household size. If the average is under the median, you generally pass the first part of the test for Chapter 7. If it is over, you are told you must move on to a more complex calculation or consider Chapter 13. For someone with a straightforward salary, that may work reasonably well. For a lot of Chicago workers, it does not.
Many online tools and non-attorney preparers quietly assume that your income is steady across the year. They take whatever was deposited in the last six months and divide by six, with no real questions about why one month was high and another was low. That approach might be acceptable for a federal employee with fixed pay, but it breaks down fast for rideshare drivers, tradespeople, bartenders, hotel staff, adjunct professors, and anyone whose hours swing with the seasons.
The result is a false sense of certainty. Someone sees a big “current monthly income” figure that does not match their current paycheck and is told they fail the means test. From there, the path often goes straight to a Chapter 13 recommendation, even though the real issue is the way the six month average was built. Our firm handles both Chapter 7 and Chapter 13 filings across Illinois, and we often see that the initial means test “failure” is more about flawed inputs than about a person genuinely earning too much.
How The Means Test Calculates Income And Where It Goes Wrong
The means test uses something called “current monthly income.” Despite the name, it does not look at your most recent pay stub. Instead, it averages all gross income received in the six full calendar months before you file. For example, if you file in July, the form looks back at January through June. Wages, gig income, overtime, bonuses, self-employment income, and most other sources are added up for each of those months, then divided by six to get one average monthly figure.
That average is then annualized and compared to the Illinois median income for your household size. You do not need the exact dollar amounts to see the problem. Imagine a Chicago worker who earned 6,000 dollars per month for three months when a big project was running, then 3,000 dollars per month for three months after the project ended and hours were cut. The six month total is 27,000 dollars, divided by six is 4,500 dollars per month. On paper, it may look like they comfortably exceed the median for their household, even though right now they are bringing home closer to 3,000 dollars.
For irregular earners, the means test can be technically correct and still misleading. The window of months that gets pulled in may include a one time bonus, a few intense overtime months, or a period before a job loss, and none of that reflects the person’s current reality. Many tools and rushed reviews stop at that average and do not ask whether that six month period truly represents ongoing income. At Attorney Joseph P. Doyle, we do not treat that figure as sacred. We look at what happened in those months and what the income situation looks like going forward before deciding what it really means for chapter choice.
Real Chicago Income Patterns That Distort The Means Test
Chicago has a lot of workers whose pay naturally spikes and dips. Take a rideshare driver who works a full schedule in December and during big events, then cuts back to part-time in January and February because demand drops and expenses rise. Suppose they earn 5,000 dollars in October, 5,500 dollars in November, 6,000 dollars in December, then only 2,500 dollars in January, 2,000 dollars in February, and 2,500 dollars in March. If they file in April, the means test averages those six months: 23,500 dollars divided by six is about 3,916 dollars per month. That number does not match their current, slower schedule at all.
Construction and union trades in and around Chicago often follow a similar cycle but in different months. A union electrician might log heavy overtime during summer work, then face weeks of reduced hours or layoff in the winter. If the filing date pulls in the peak overtime months and leaves out the layoff months, the six month average can jump significantly. Someone who is now struggling on limited unemployment or short hours may still show up on the means test as if they are in the middle of their best season.
Hospitality workers, hotel staff, and restaurant employees along the Loop, River North, or near the lakefront can see pay swings with conventions, tourism, and events. Teachers and school staff sometimes have income spread differently over the year, or supplement school pay with summer work that is anything but guaranteed long term. In each of these situations, picking a six month window without looking at these patterns can create an average that is far above what the person can realistically expect going forward. We see these local patterns frequently, so we ask about busy seasons, slow seasons, and side jobs before we accept any number as “current monthly income.”
Common Means Test Income Errors That Push You Into Chapter 13
When we re-run means tests for Chicago clients, certain income errors show up again and again. The first is using the wrong six month period. Someone might have consulted an online calculator that assumed the months incorrectly or used partial months. If the months with the highest overtime or surge gig income are included and the recent low months are left out, the average climbs and makes it look like there is more capacity to pay creditors than there really is.
A second frequent problem is treating one time payments as if they were regular income. Examples include a year end bonus that is not guaranteed, a payout of unused vacation or sick time when leaving a job, or a one off contract gig that is finished. If those dollars are just lumped into the six month total without being recognized as exceptional, they raise the average in a way that will not match the debtor’s future pay. Trustees and courts generally care about what a person can actually pay over the coming years, not about a one time windfall that is gone.
Another set of errors involves misclassifying money that is not really the filer’s income at all. Roommate contributions that go straight to rent, deposits from adult children who are paying their share of utilities, or short term transfers between accounts can be swept into income totals by automated tools. Without a human asking follow-up questions, everything that hits a bank account can end up treated as if it were available for plan payments. That inflates “current monthly income” and makes it easier to fail the means test, which in turn leads people toward Chapter 13 without a fair evaluation.
We also see cases where the person preparing the forms never asked about a recent job loss, reduction in hours, or medical leave. If someone was earning well in the first half of the six month period and then lost that job entirely, a simple average will overstate their true situation. At Attorney Joseph P. Doyle, we re-check paystubs, gig platform records, and bank statements against the chosen six month window. We do not just accept that every deposit is steady income, and we question any spike or drop that could point to a miscalculation.
Why A Flawed Means Test Can Lock You Into The Wrong Chapter
The means test is not just an abstract form. It feeds into one of the most important decisions in your financial life, which is whether you file Chapter 7 or Chapter 13. A properly qualified Chapter 7 case usually moves relatively quickly and wipes out qualifying unsecured debts without long term payments. In contrast, a Chapter 13 case generally involves making monthly plan payments for three to five years, with your budget monitored by a trustee and the court.
When inflated income on the means test suggests that you can afford more than you truly can, the natural push is toward Chapter 13. The same overstated income often leads to a higher “disposable income” figure, which then becomes the basis for your proposed monthly plan payment. That can set you up for a plan that feels unaffordable from the start, and if you fall behind, you risk dismissal or the need to seek changes later.
Once a Chapter 13 plan is confirmed, changing it is not simple. Modifying payments usually requires showing a significant change in circumstances, such as a job loss, serious health problem, or other substantial shift. If the original means test and plan were built on an inflated snapshot that never reflected your real sustainable income, you may find yourself locked into years of struggling to keep up. Our practice looks at chapter choice holistically, not by blindly following the first means test result. We compare what a realistic Chapter 13 plan would look like with what a corrected Chapter 7 analysis might allow.
How Careful Timing And Analysis Can Change Your Means Test Result
The six month look back window is rigid in how it is defined, but you usually have some control over when you file. That timing can make a big difference. If you had three high overtime months followed by three lower months after work slowed, filing earlier might include more of the high months, while filing later could swap those out for lower income months. In many real world cases, simply waiting or filing a little sooner, depending on the situation, changes the six month average enough to bring it closer to your true ongoing income.
Consider a worker in Chicago who earned 5,500 dollars per month from January through March, then 2,500 dollars per month from April through June after losing overtime. If they file in July, the average is 4,000 dollars. If waiting until September means the window becomes March through August, and income from July and August stays low, the average may drop significantly. The point is not that everyone should delay or rush a filing, but that for irregular earners, timing can and often does change the means test calculation in a real way.
Analysis also matters. Properly checking what counts as income can remove items that do not belong, such as a one time severance or a temporary family contribution. On the other side, fully using allowed expense deductions and, in some cases, documenting special circumstances can prevent an inflated income number from turning automatically into a harsh Chapter 13 plan. At Attorney Joseph P. Doyle, we routinely map out the possible six month windows for clients and discuss how each one would affect their means test, always within the broader context of lawsuits, garnishments, and other pressures.
Because every case is different, this is not a do it yourself project. A month that helps one person might hurt another, depending on changes in their job, garnishments hitting their paycheck, or pending foreclosure timelines. What you can do is bring detailed income records, including paystubs, gig platform summaries, and bank statements, and ask for a careful walkthrough of how those numbers feed into the means test in light of your filing date options.
Warning Signs Your Means Test Income May Be Wrong
Many people sense that something is off with their means test result but cannot explain why. Certain red flags often point to an income error that deserves a second look. One major warning sign is a big drop in your income in the last month or two that is not reflected in the form’s “current monthly income.” If your job ended, your hours were cut, or your busiest season ended, yet the form still shows a high average, that is a clue that the window is dominated by past peak months.
Another sign is a major one time payment in the last six months, such as a bonus, severance, cashed out vacation, or one time contract that will not repeat. If the person who prepared your forms did not ask about the nature of that payment and simply added it to your regular pay, it may be distorting the average. The same is true if you see deposits from roommates, adult children, or friends that were meant for shared bills, but were treated as if they were your personal income.
You should also pay attention to how much the preparer or attorney asked about your work pattern. If nobody asked whether you drive for multiple apps, work seasonally in construction, or depend heavily on tips that vary by month, the analysis likely assumed a steadier income than you really have. Another red flag is being told that because the calculator showed a fail, your only option is a five year Chapter 13 plan, without any discussion of alternative timing, expense deductions, or special circumstances. At Attorney Joseph P. Doyle, we expect irregularity and ask follow-up questions, because that is the norm for many Chicago clients, not the exception.
Getting A Second Look At A Means Test Income Error In Chicago
If any of these warning signs sound familiar, it makes sense to have someone independently review your means test income and chapter options. A good review looks at your last several months of paystubs, any gig or side income statements, bank records, and your work history over the last year. We then line those up against the six month windows tied to realistic filing dates and ask what each version of the means test would show, rather than assuming the first run was right.
This process is not about criticizing whoever prepared your forms. It is about protecting you from getting locked into a Chapter 13 plan that does not match your real earning capacity, or from walking away from Chapter 7 relief that might be available with corrected numbers. Our firm’s approach to bankruptcy is holistic. We look at how a chapter decision intersects with active garnishments, collection lawsuits in and around Chicago, and risks like foreclosure, so you can see the full picture instead of a single line on a form.
Before you come in, gather your recent paystubs, any 1099 or platform summaries for gig work, and a simple list of when your hours or jobs changed. With that information, we can walk through your situation step by step and help you understand whether a means test income error is affecting your chapter options. If you suspect an improper means test income error in Chicago is steering you toward a repayment plan you cannot afford, you do not have to accept that at face value.
Talk To A Chicago Bankruptcy Attorney About Your Means Test Income
A means test result is only as accurate as the months and numbers that go into it. For many Chicago workers whose income jumps and dips, the standard six month average can paint a picture of steady, high earnings that simply does not exist. That kind of error does more than skew a form. It can shape the next three to five years of your life by pushing you into a Chapter 13 plan when a corrected analysis might open the door to Chapter 7.
If you have been told you failed the means test or you are already in a Chapter 13 that feels impossible to maintain, a detailed review of your income calculation can be a turning point. At Attorney Joseph P. Doyle, we take the time to understand your work pattern, walk through the math, and explain your real options under Illinois law. To discuss a possible means test income error in your Chicago case and what it might mean for your chapter choice, contact us today.