In the context of Chapter 7 bankruptcy and Form 22A (the Means Test), a "court-ordered payment" generally refers to obligations like child support, alimony, or other payments explicitly mandated by a court order that are necessary for the support of the debtor or their dependents. Wage garnishment, however, is typically a broader term and may not automatically qualify as a "court-ordered payment" for the purposes of this form unless it meets specific criteria.
For Form 22A, the goal is to calculate your Current Monthly Income (CMI) and then adjust it with allowable deductions to determine if you pass the Means Test for Chapter 7 eligibility. Deductions are outlined in the Bankruptcy Code (11 U.S.C. § 707(b)(2)) and include certain expenses allowed by the IRS National and Local Standards, as well as "actual expenses" for specific categories.
Wage Garnishment and Deductibility
Nature of the Garnishment:
If the wage garnishment is for a priority debt like child support or alimony, it can often be deducted as a "court-ordered payment" under Line 19 of Form 22A-2 (Chapter 7 Means Test Calculation), provided it’s not already counted elsewhere in the form (e.g., under living expenses). These are considered mandatory and reasonable expenses.
If the garnishment is for something like a creditor judgment (e.g., credit card debt, personal loans), it’s less likely to qualify as a deductible "court-ordered payment" because it’s not tied to ongoing support obligations or a priority debt under bankruptcy law. The Means Test generally doesn’t allow deductions for payments to unsecured creditors that would be discharged in Chapter 7.
Impact on Monthly Income:
Wage garnishment reduces the debtor’s take-home pay, but the Means Test starts with your gross income (before garnishments or taxes) over the six months prior to filing, averaged monthly. You then subtract allowable expenses, not necessarily what’s already being taken out of your paycheck.
If the garnishment qualifies as an allowable deduction (e.g., child support), you can list it separately on the form to reduce your disposable income. If it doesn’t qualify, it won’t reduce your CMI for eligibility purposes, even though it affects your actual cash flow.
Practical Considerations
Check the Form Instructions: Line 19 of Form 22A-2 specifically asks for "court-ordered payments" like domestic support obligations. The instructions clarify that these must be required by a court or statute and not duplicative of other deductions.
Consult a Bankruptcy Attorney: Whether a specific garnishment can be deducted depends on its purpose and how it’s classified under bankruptcy law. An attorney can review your case to ensure it’s properly accounted for, especially if it’s an unusual garnishment (e.g., tax debt or restitution).
Eligibility Impact:
Deducting a garnishment could lower your disposable income below the threshold for Chapter 7 eligibility (typically tied to your state’s median income or the $13,650 disposable income limit over 5 years for 2025 cases). If it’s not deductible, your income might appear higher, potentially pushing you toward Chapter 13.
Conclusion
A wage garnishment may be considered a "court-ordered payment" on Form 22A if it’s for something like child support or alimony, and in that case, it can be deducted from your monthly income on the Means Test. For other types of garnishments (e.g., consumer debt), it’s generally not deductible. To get a definitive answer for your situation, you’d need to specify the type of garnishment and cross-check it with the form’s rules or a legal expert.