Income Excluded from the Means Test
- Social Security benefits (retirement, disability, survivor) -- the most important exclusion for retirees
- VA disability compensation -- excluded for all veterans
- Payments under the Social Security Act (SSI, TANF)
- Victim compensation payments (crime victim assistance)
- War crime victim payments
- Payments from the Victims of Terrorism Tax Relief Act
What IS Included
Almost everything else: wages, salary, overtime, commissions, net self-employment income, rental income, pension/annuity payments, unemployment compensation, workers' comp, child support received, alimony received, interest/dividend income, and regular contributions from others in your household.
The Social Security Exclusion
This is the single most important means test provision for retirees. If Social Security is your primary or sole income source, you will almost certainly qualify for Chapter 7 regardless of the amount. Even $4,000/month in Social Security won't count against you.
Note: Social Security Disability (SSDI) is excluded, but private disability insurance payments are included.
VA Disability Exclusion
VA disability compensation is excluded from the means test under 11 U.S.C. section 101(10A)(B). Additionally, veterans with 30%+ disability who incurred debts primarily during active duty are exempt from the means test entirely (no calculation needed).
Frequently Asked Questions
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Last updated: April 2026. Not legal advice.
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