Bankruptcy Means Test Calculator
Determine whether your income qualifies you for Chapter 7 bankruptcy under the federal means test. Compare your annualized income against your state's median to assess eligibility.
Last updated: September 2026
Formula below · 1 source (Wikipedia) · Updated Sep 2026
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About this calculator
The bankruptcy means test (11 U.S.C. § 707(b), added by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act) screens Chapter 7 filers in two stages. Stage 1: if your current monthly income (the average of the six months before filing) is at or below the median income for a household of your size in your state, you pass and no presumption of abuse arises; the calculator says so instead of giving a number. Stage 2: above the median, monthly disposable income = income − allowed expenses − secured and priority debt payments. Allowed expenses come from the IRS National and Local Standards and other deductions on Official Form 122A-2, not your actual spending. The result is compared with dollar thresholds that apply to cases filed on or after April 1, 2025: if disposable income × 60 is below $10,275 ($171.25 a month), no presumption arises; at $17,150 or more ($285.83 a month) abuse is presumed and Chapter 13 is usually the route; in between, abuse is presumed only if 60 months of disposable income would pay at least 25% of your nonpriority unsecured debt. State median figures are published by the U.S. Trustee Program and change periodically.
How to use
Example 1: income $4,000/month with a state median of $5,200 for your household. Since $4,000 ≤ $5,200, you pass at stage 1. Example 2: income $6,000, median $5,200, allowed expenses $3,200, secured debt payments $600. Disposable income = $6,000 − $3,200 − $600 = $2,200/month; × 60 = $132,000, far above $17,150, so abuse is presumed. Example 3: income $5,600, median $5,200, expenses $4,800, debt payments $650: disposable income = $150/month; × 60 = $9,000, below $10,275, so no presumption arises.
Frequently asked questions
What is the bankruptcy means test and how does it determine Chapter 7 eligibility?
The means test compares your household's annualized gross income to the median income for a household of the same size in your state. If you fall below that median, you automatically qualify for Chapter 7. If you exceed it, a second calculation deducts allowable living expenses, secured debt payments, and priority obligations from your monthly income. If 60 months of disposable income after deductions is below $10,275 (or below 25% of your nonpriority unsecured debt, up to $17,150), you still qualify (thresholds for cases filed from April 1, 2025). The test exists to ensure Chapter 7 — which discharges most unsecured debt without repayment — is reserved for those genuinely unable to pay.
Where can I find the current state median income figures for the bankruptcy means test?
The U.S. Trustee Program publishes updated state median income tables on the U.S. Department of Justice website, typically updated every six months. These figures are broken down by household size from one to four or more persons. Your bankruptcy attorney or a legal aid clinic can also provide the applicable figures for your filing date, because courts use the median income in effect at the time of filing rather than the current date. Using outdated figures can invalidate your means test calculation, so always verify the source.
What happens if I fail the bankruptcy means test for Chapter 7?
If your income exceeds the state median and your disposable income after deductions remains too high, you cannot file Chapter 7 and the court may dismiss your petition or convert it to Chapter 13. Chapter 13 requires a structured repayment plan lasting three to five years but allows you to keep non-exempt assets and catch up on mortgage arrears. Some filers with special circumstances — such as primarily business debts or a recent income decrease — may still qualify for Chapter 7 through exemptions. A bankruptcy attorney can analyze whether alternative filings or expense deductions improve your eligibility.