Chapter 7 Bankruptcy Means Test: Eligibility & Calculator
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Legal Disclaimer
This guide is for educational purposes only and does not constitute legal or financial advice. Means test calculations depend heavily on precise financial lookback periods, regional standard deductions, and court interpretations. Reading this content does not create an attorney-client relationship. Consult a licensed bankruptcy attorney before making filing decisions.
For many people, the means test is an important part of determining whether they qualify for chapter 7 bankruptcy relief. The means test can also play a role in determining what certain creditors need to be paid in chapter 13, but for now we are focusing on the means test as it relates to chapter 7 eligibility.
If the means test shows that chapter 7 may not be available, you may still have other bankruptcy options. For example, in many cases, chapter 13 bankruptcy allows people to repay part of what they owe through a court-approved plan that usually lasts three to five years.
How the Chapter 7 Means Test Determines Eligibility
The chapter 7 means test is used to determine whether you have enough disposable income to repay creditors (11 U.S.C. § 707(b)(2)). An overview of the means test process is outlined below.
Calculate Your Gross Monthly Income and Compare It to Your State’s Median
The very first step in the means test is to figure out what your gross monthly income is. You will use your income, and your joint filer’s income if you have one, for the full 6 calendar months before the month that you file.
Example: Assume you are an employee who gets paychecks, you have no other income and you plan to file in October. Here you would use your pay stubs for the full six calendar months before you plan to file, which would be April through September. To estimate your income for this step, you would collect all pay stubs for that six-month period, add up the gross income shown on them, and divide by 6. Gross income means the amount you earned before taxes and other deductions were taken out. So if your pay stubs show a total of $30,000 in gross income from April through September, your average monthly gross income would be $5,000. That is the number you would compare to your state’s median income for a household of your size.
Median Income Calculator
We made the median income calculator below so that you could easily enter your income and estimate whether you may qualify for chapter 7 bankruptcy by being under the median income level in your state.
Check If Your Household Is Under the Chapter 7 Median Income in Your State
Use this chapter 7 median income tool to estimate whether your household income is under your state's Chapter 7 median threshold. Enter your household size and gross monthly income for both debtor and co-debtor, and the calculator will compare the annualized total to your selected state limit.
This is an educational estimate only and not legal advice. A full means-test analysis can still qualify some filers above median after deductions.
Median income dataset effective April 1, 2026. For household sizes above 4, this calculator adds $11,100 per additional person.
The median income numbers we use in the calculator are straight from the U.S. Trustee median income tables.
If you want to find out more information about bankruptcy in your state, you can check out your state's bankruptcy guide where we try to provide information about what is different about bankruptcy in each state.
If Your Income is Below Your State’s Median
If you do the math and find out that your gross income is below your state’s median for a household of your size, you will usually pass the means test. If it is above the median, it usually means you must move on to the next part of the means test, which looks more closely at allowed expenses and disposable income.
If Your Income Is Above Chapter 7 Median Income Limits
If your income is above your state’s median, you do not automatically fail the means test. Instead, you move to the next step, which is more involved. An oversimplified example of the next steps would be:
- Step 1: Start with your current monthly income.
- Step 2: Subtract the expenses the law allows you to claim.
- Step 3: Determine whether the remaining disposable income is high enough to create a presumption of abuse.
The means test does not let you deduct all of your expenses. For many categories, bankruptcy law uses standard amounts that depend on where you live, including limits for housing, utilities, transportation, and other necessary living costs. The official means test forms and instructions are a great place to start to find out what expenses you can claim and which ones you cannot.
My Real-World Experience: Navigating the 6-Month Lookback Period
"In my practice, I frequently consult with clients who panic because they just landed a new job or received a heavy overtime check last month, pushing their current income above the state median. One of the most important tactical decisions we make is evaluating the 6-month lookback window. Because the means test averages the full six calendar months prior to filing, timing can be everything. Sometimes, waiting a few weeks for a high-earning month to drop out of the lookback average can mean the difference between failing or passing the means test.
*Note: Purposely delaying a filing requires careful planning regarding creditor collection actions and active lawsuits.*"
Example: When Income Is Above the Median
Imagine a household whose income is higher than the state median for its size. That household does not automatically fail the means test. Instead, the next step is to apply the allowed expense deductions. If the remaining disposable income is low enough under the formula, the filer may still be able to proceed under chapter 7.
How Disposable Income Is Actually Calculated
If your income is above the median, the Means Test on Form 122A-2 forces you to calculate your "monthly disposable income" using standardized IRS national and local expense standards rather than your actual living expenses. This creates two distinct rules for your debts:
The 60-Month Rule: What Happens to Your Disposable Income?
Even if the Means Test formula leaves you with a positive "monthly disposable income" number after subtracting your allowed expenses, that does not automatically mean you fail to qualify for Chapter 7.
Form 122A-2 takes your calculated monthly disposable income and multiplies it across 60 months (5 years) to find your total projected disposable income. Under federal bankruptcy rules, if that 5-year total falls below strict statutory minimum thresholds, the presumption of abuse does not trigger. In many cases, even with some leftover monthly income, filers can still qualify for Chapter 7 if the total amount they could theoretically pay creditors is too low to justify forcing them into a Chapter 13 plan.
Means Test Calculator
If it looks like your income could be above the median, you can use the calculator below to get a general estimate of whether you may still be able to qualify for chapter 7 under the means test. There's no obligation to use this tool. We don't ask for any contact information at the end. It's just a calculator that's free to the public with no strings attached.
The results you get here are a good starting point for your means test analysis. However because this is a very complex form, feel free to print or create a pdf of your results for your records, and if you have questions about how the means test applies to your specific situation, consider speaking with a qualified bankruptcy attorney before filing.
Chapter 7 Means Test Calculator
Estimate whether your household income is above or below your state’s median income for educational planning.
Educational estimate only. This Chapter 7 means test calculator is not legal advice, does not create an attorney-client relationship, and cannot account for every legal nuance. Attorney review may still be necessary.
Step 1: Initial Screening
If filing alone, household starts at 1. If filing jointly, household starts at 2. Add only additional dependents here.
Consumer debts are usually personal, family, or household debts.
Median-income dataset effective April 1, 2026. IRS/local standards preset date: Configurable - update with current IRS + USTP data. Presumption thresholds: $10,025 and $16,700 (60-month).
We do our best to explain what expenses you can input into the calculator line by line, but again, if you have questions about one of your specific expenses, the official means test forms and instructions are a great source to look to for specific expense clarifications.
Chapter 7 Means Test Forms 122A-1 and 122A-2: What to Know
Form 122A-1: This is the starting point for most people. Form 122A-1 asks for your current monthly income and compares it to the median income for a household of your size in your state. If your income is below the median, you will usually pass the first part of the means test and may not need to complete the full means test calculation.
Form 122A-2: If your income is above the state median, the next step is usually Form 122A-2. This form applies the second part of the means test by subtracting certain allowed expenses and determining whether enough disposable income remains to create a presumption of abuse.
Form 122A-1Supp: Some people do not have to complete the means test at all. Form 122A-1Supp is used to determine whether you qualify for an exemption from the presumption of abuse rules, including certain qualifying military-related situations.
The Household Size Trap: Who Can You Claim?
One of the most common mistakes filers make is miscalculating their household size. The median income limit scales based on how many people are in your household, which tempts some people to include roommates, non-dependent partners, or adult children who pay their own way.
Under bankruptcy guidelines, household size is strictly scrutinized by trustees. Generally, you can only claim individuals whom you legally claim as dependents on your federal tax returns or who form a true economic unit where you regularly provide financial support. Miscalculating this number can trigger an audit or cause an above-median case to be flagged for abuse.
Why Passing the Means Test Does Not Always Guarantee Chapter 7
Passing the means test does not always end the chapter 7 eligibility analysis. The court, trustee, or U.S. Trustee may also review your income and expenses, including the information in the part of your bankruptcy petition that shows your budget (Schedule I and Schedule J), when considering whether a chapter 7 case should proceed or whether abuse may be an issue. If your budget shows enough disposable income, the court may require you to convert your case to chapter 13.
Are There Situations Where You Do Not Have to Take the Means Test?
Although the means test is an important part of many chapter 7 cases, it does not apply in every situation. Some filers may qualify for an exception, which can change how chapter 7 eligibility is evaluated. Below are some examples of exemptions.
Business Debt Exemption
The means test usually applies only in chapter 7 cases involving primarily consumer debts. If most of your debts are personal, family, or household debts, you will generally need to complete it. If your debts are primarily business debts, the means test may not apply (11 U.S.C. § 707(b)(1)).
Business-debt cases are often easy to identify when the filer is a corporation, LLC, or partnership, but an individual can also have primarily business debts depending on how the debt arose.
Military Service Exemption
Some veterans and military members may be exempt from the means test. To see whether that exception may apply, review the eligibility requirements in Form 122A-1Supp, which is linked in the chapter 7 means test forms section above.
How to Approach the Chapter 7 Means Test
The means test is designed to answer one central question: based on your recent income and certain allowed expenses, does the law presume you have the ability to repay unsecured creditors?
For some people, the answer is relatively clear, especially when income is well below the median for their state. For others, the outcome may depend on timing, documentation, and how expenses are calculated under the official forms.
- Gathering six months of income records before making assumptions about eligibility.
- Reviewing the current median income tables that apply to your filing date.
- Understanding that “above median” does not automatically mean you cannot file chapter 7.
- Considering how chapter 7 compares with Chapter 13 bankruptcy if the means test result is uncertain.
Bankruptcy is a legal process with long-term financial consequences, so it is important to carefully consider your options before filing. Taking the time to review the means test and confirming that your information is complete and accurate can help reduce the risk of delays or complications after filing.
Unsure How Your Income Stacks Up?
Don't guess whether you qualify for Chapter 7. Let an experienced bankruptcy attorney review your 6-month lookback average and protect your financial fresh start.
Frequently Asked Questions About the Chapter 7 Means Test
Does passing the means test guarantee discharge of my case?
No. If the means test shows no presumption of abuse, that generally supports proceeding under chapter 7. However, your case must still meet all other legal requirements, including proper disclosure of assets, completion of required courses, and compliance with court procedures.
What if my income recently dropped?
Because the means test uses the average income from the six full calendar months before filing, a recent job loss or pay reduction may not immediately change your result. In some situations, waiting until lower-income months are included in the six-month average can affect the calculation. Timing should be evaluated carefully before filing.
What if I receive bonuses, overtime, or commission?
Income received during the six-month lookback period is generally included in the average, even if it was irregular. This can temporarily increase your current monthly income and affect whether you are above or below the median.
Do I have to take the means test if I primarily have business debt?
The means test typically applies to cases involving primarily consumer debts. If most of your debts are business-related, different rules may apply under 11 U.S.C. § 707(b)(1). Determining how debts are classified can require careful legal review.
Where do the median income numbers come from?
The median income figures used in the means test are published by the U.S. Trustee Program and updated periodically. They are applied based on your filing date and household size. You can review the current tables here: U.S. Trustee Program Means Testing and Median Income Tables.
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