When evaluating debt relief options — whether in bankruptcy, debt defense, or settlement negotiations — the numbers matter. Many of the financial thresholds used in these cases are not arbitrary. They’re based on established government data sources, including:

Key Data Sources Used in Financial Analysis:

• U.S. Census Bureau Median Family Income (by family size)
Used in the Bankruptcy Means Test to determine eligibility for Chapter 7 relief.

Census Bureau Median Family Income By Family Size

• IRS Data & Administrative Expense Multipliers
Applied in calculating allowable expenses in repayment plans.

Census Bureau, IRS Data and Administrative Expenses Multipliers

• Local Standards – Housing & Utilities
IRS-issued guidelines based on geographic region that determine reasonable housing expense allowances.

Local standards: Housing and utilities

• Local Standards – Transportation
Includes vehicle ownership and operating costs, adjusted by location.

Local standards: Transportation

• National Standards – Food, Clothing & Other Items
Standardized expense allowances used in means testing and repayment analysis.

National standards: Food, clothing and other items

• National Standards – Out-of-Pocket Health Care
Monthly healthcare expense allowances based on age and household size.

National standards: Out-of-pocket health care

These standards often determine:
✔ Whether someone qualifies for Chapter 7
✔ How much must be paid in a Chapter 13 plan
✔ What expenses are considered “reasonable and necessary”
✔ How hardship is evaluated in negotiations

Many consumers don’t realize their financial eligibility is driven by publicly available federal data — not subjective decision-making.

If you’re facing debt collection, foreclosure, or considering bankruptcy, understanding how these numbers apply to your household can make a significant difference.

Have questions about how these standards impact your situation? Contact us at 855-978-6564!