The Means Test Form 22a and Form 22C (chapter 7 or chapter 13 respectively) computes disposable monthly income too. This is a 6 month average of all household income leading up to the case, along with allowable deductions for taxes, insurances, and set amounts based on where the debtor lives.
All income must be disclosed in a bankruptcy case. This includes child support, pensions, social security income (counts for schedule I, but not for the means test) and even household contribution towards shared expenses by a family member or roommate must all be disclosed in a bankruptcy case.
To qualify for chapter 7, a debtor should not have much income left at the end of the month after all monthly expenses. If there is significant income left, the rule of thumb is if there is enough left over to pay 10% of the debts back over the next 5 years, then a chapter 13 is the better option to file your bankruptcy case under.
