In Chapter 7 bankruptcy, a debtor needs to complete a form that discloses all income and authorizes certain expense deductions to determine if the person qualifies for Chapter 7. This is called the means test. The income includes wages, interest, dividends and, if applicable, alimony and child support the debtor receives. If after adding this income and deducting allowed expenses the net income is above a certain threshold amount, the debtor will not qualify for Chapter 7 and will likely be forced into Chapter 13 if the debtor still needs bankruptcy relief.
This result will probably still apply even if the debtor would not have to include the child support income in Chapter 13 and would therefore have income below the threshold amount. This is because bankruptcy courts may consider the plain language of the statute, and not a broader view of the philosophical purposes behind the bankruptcy code. Nevertheless, many courts have found that this result is absurd, and would allow the debtor to file Chapter 7 bankruptcy even though the child suuport would push the debtor over the applicable limits for income.
