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.
About this calculator
The bankruptcy means test was introduced by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act to prevent high-income filers from abusing Chapter 7 liquidation. The core calculation is: Income Percentage = (monthlyIncome × 12) / stateMedian × 100. If your result is 100% or below, your annualized income is at or under your state's median, and you automatically qualify for Chapter 7. If the percentage exceeds 100%, you must complete a further expense deduction analysis to determine whether your disposable income is low enough to still qualify. State median income figures are published by the U.S. Trustee Program and updated periodically. Household size is crucial because the median threshold rises with each additional household member. This calculator provides the first-pass eligibility check only — not the full deductions test.
How to use
Example: Monthly gross income = $4,500; household size = 3; state median income for a 3-person household = $65,000/year. Step 1: Annualize income — $4,500 × 12 = $54,000. Step 2: Calculate percentage — ($54,000 / $65,000) × 100 = 83.08%. Since 83.08% is below 100%, this household's income falls under the state median, meaning they automatically pass the means test and may file for Chapter 7 bankruptcy without further income analysis.
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 disposable income after deductions is below a threshold set by federal guidelines, you still qualify. 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.