Do you add your spouse's income to determine the bankruptcy means test?

The bankruptcy means test is used to determine whether you are eligible for Chapter 7 bankruptcy. If your average income over the six months before you file for bankruptcy is less than the median income in your state, you pass the test. Even if your income exceeds the median, you still pass if your disposable income (the amount left over after paying certain expenses) is less than a minimum amount set by law. 

As you can see, the lower your income, the better your chances of passing the means test -- and the more likely you will be able to use Chapter 7. This leads many married filers -- especially those with high-earning spouses -- to wonder whether they have to count their spouse's income when taking the means test. 

In most cases, the answer is yes. If you and your spouse file jointly for bankruptcy, all of your combined income must be included. But even if you file alone, you must count your spouse's income when taking the means test, with two exceptions:

• If you and your spouse are legally separated and living apart, you don't have to include your spouse's income. 
• If your spouse doesn't contribute some of his or her income to the household, you don't have to count that amount. If, for example, your wife is paying $750 a month in child support to her ex-husband, you can subtract that amount when you take the means test.