The number of dependents a debtor has is significant, as it determines whether the debtor passes the means test and qualifies for a Chapter 7 bankruptcy.
The means test looks at a debtor’s household income from the previous six months prior to the debtor’s bankruptcy filing, and compares it to the median household income of the state the debtor resides in. If the debtor’s household income is above the household median income, then the debtor does not qualify for a Chapter 7 bankruptcy. The number of dependents a debtor has will affect their household size and thus influence whether the debtor passes the means test. Moreover, a debtor filing for bankruptcy must complete Schedule J of their bankruptcy petition and schedules. Schedule J lists all of the debtor’s household expenses. A debtor must provide their number of dependents in Schedule J of the petition and schedules. The number of dependents a debtor has will determine the debtor’s household size, which can impact the value of allowed expenses the debtor’s family may be allowed to have when filing for bankruptcy.
