Chapter 7 Bankruptcy Means Test Calculator & Guide

Filing for bankruptcy doesn’t automatically guarantee a discharge of your debts. Under federal bankruptcy laws, you must meet specific requirements to stay in a Chapter 7 case and receive a discharge. One critical requirement is that you complete the Chapter 7 means test. If you don’t meet the means test requirements, it can lead to dismissal of the case or, with your consent, conversion to Chapter 13.

The means test separates people who need debt relief from those who have enough income to repay creditors through a Chapter 13 repayment plan. It provides the trustee with a standard framework for reviewing your financial situation.

This page includes a calculator to help you estimate your eligibility. It also explains how the means test works and what your results mean.

If you are thinking about filing for bankruptcy, consider seeking legal advice from a bankruptcy attorney. They can walk you through your options and guide you through each step of the bankruptcy process.

Chapter 7 Means Test Calculator

Use this calculator to quickly estimate whether you pass Step 1 of the Chapter 7 means test based on your state’s median income limit.

Note: These thresholds apply to cases filed on or after July 15, 2026. The U.S. Trustee Program‘s median income amounts cover households of one to four people, then add a set amount for each additional household member.

Chapter 7 Means Test Calculator

Estimate your eligibility for Chapter 7 bankruptcy

How To Use This Means Test Calculator

To get an accurate estimate, complete the following steps:

1. Select your state: Median income varies significantly by location
2. Enter your household size: Include everyone living in your home that you financially support
3. Calculate your average monthly income: Add up your gross income (before taxes) from the past 6 months and divide by 6
4. Include all income sources: Wages,  self-employment income, rental income, etc. (see full list below)

What Income To Include

For the Chapter 7 means test, your monthly income includes the following sources:

• Wages, salary, tips, bonuses, overtime, and commissions
• Gross income from a business, profession, or a farm
• Interest, dividends, and royalties
• Rental and real property income
• Regular child support or spousal support
• Unemployment compensation
• Pension and retirement income
• Workers’ compensation
• Annuity payments
• State disability insurance

Income excluded from the calculation includes:

• Tax refunds
• Social Security retirement benefits
• Social Security Disability Insurance (SSDI)
• Supplemental Security Income (SSI)
• Temporary Assistance for Needy Families (TANF)

What Your Results Mean

✓ Pass: Your income is at or below your state median. You’ve cleared Step 1 and likely qualify for Chapter 7.

⚠️ Fail: Your income exceeds your state median. You’ll need to complete Step 2, which examines your expenses and disposable income.

How Often Do These Income Figures Change?

The U.S. Trustee Program generally updates the state median family income figures twice a year. Each release also incorporates a cost-of-living adjustment from the Census Bureau that the Trustee Program applies early in the calendar year before the new figures take effect.

You can find the current numbers at the U.S. Trustee Program‘s means-testing page, or use the calculator above, which reflects the figures in effect for cases filed on or after July 15, 2026. The next update is expected in mid-October.

What Happens If I Don’t Qualify Under the Means Test?

You may still be able to file for Chapter 7, even if your income level doesn’t meet the means test. The trustee or a creditor will likely file a motion to dismiss your case or convert it to a Chapter 13 bankruptcy. Even with a higher income, you can defend the motion by establishing the presence of special circumstances, such as:

• A serious medical condition
• A call to active military duty

To demonstrate the special circumstances, you must:

• Provide documentation for the expense or adjustment to your income
• Explain the necessity of the adjustment or expense

If the bankruptcy court finds you proved special circumstances, it may allow the Chapter 7 case to proceed.

Understanding the Chapter 7 Means Test

The means test measures your ability to repay your debts. It examines your debts, income, and household expenses. The goal is to see whether you can repay your consumer debts over time rather than have the court discharge them entirely.

The means test can also tell the U.S. trustee whether you qualify for a Chapter 13 option instead. In Chapter 13, you typically repay a portion of your debts over a specific period. Creditors tend to prefer this type of bankruptcy because it allows them to recover some of their money.

If the court finds your income sufficient for a repayment plan, it can dismiss the case, or, with your consent, convert it to Chapter 13.

How Does the Chapter 7 Means Test Work?

The Chapter 7 means test compares your income to your debts and living expenses to determine whether you can afford a repayment plan. The trustee reviews a statement of your current monthly income and compares it to your monthly expenses.

Some of the factors the trustee will consider include:

• The average monthly expenses for a household of your size
• Your actual expenses
• Your household income and annual income (from all sources)
• Extraordinary expenses such as childcare and healthcare
• Your family size and household size
• Credit card debt and tax debt
• Prior efforts at debt relief programs

The court also requires a copy of your IRS paperwork and tax returns. This will help the court gauge your earning potential versus your actual income.

Below are the steps the bankruptcy courts will take when conducting the Chapter 7 means test.

Step 1: Comparing Income To State Averages

The first part of the means test compares your average monthly income to your state’s median family income. If your income is at or below the state median, you pass Step 1, and there is no “presumption of abuse” in your case.

In bankruptcy law, “abuse” is a legal term that simply means filing Chapter 7 when you have the means to repay debts through a Chapter 13 plan. It doesn’t imply fraud or dishonesty—it’s just the technical language courts use to describe cases that don’t meet Chapter 7’s requirements.

Even if you pass Step 1, there’s still a chance a bankruptcy trustee will determine you have enough income (after paying allowable expenses) to repay creditors in a Chapter 13 repayment plan. The means test is not a final “yes.”

If the bankruptcy court agrees with the trustee, it may dismiss the Chapter 7 case or, with your consent, convert it to Chapter 13.

How Household Size Affects the Means Test

Your state’s median income threshold rises with household size. A larger household has a higher median to compare against, which makes it easier to pass Step 1. Your household generally includes you, your spouse, and any other individuals you financially support, such as dependents. 

However, the Bankruptcy Code does not define “household size,” and courts do not agree on a single test.

• Some count everyone living in the home
• Others limit it to IRS-qualifying dependents
• Some look at who works as part of a shared financial unit with you

A local bankruptcy attorney can explain which approach your local court follows.

If your income is close to your state’s median, double-check that you’ve counted everyone in your household correctly, since this can shift your result. The U.S. Trustee Program‘s median income tables list figures for households of one to four people, then add a set amount for each additional household member beyond four.

Step 2: Comparing Disposable Income

If you make more than your state’s median income, the trustee must complete the second part of the means test to determine your eligibility.

If there’s enough disposable income left after paying allowed expenses to pay a portion of unsecured debt, you may not qualify for Chapter 7. However, it may still be an option under certain special circumstances. The trustee or another party in interest may file a motion to dismiss the case for abuse or to convert it to Chapter 13. Conversion generally requires your consent.

Who Is Exempt from the Means Test?

The means test doesn’t apply to certain groups of debtors, including:

• Those with mostly non-consumer debts: If you owe mainly business debts – meaning more than half of your total debt is non-consumer debt – the means test does not apply to you. You may file for bankruptcy under Chapter 7 without completing it.
• Disabled veterans: The bankruptcy means test doesn’t apply to certain disabled veterans who took on debt while on active duty.

If you think one of these exemptions might apply to you, it’s important to speak with a bankruptcy attorney before filing for bankruptcy.

What’s Next?

If your income is at or below the median, that’s a good sign for your Chapter 7 case. But you still need to:

• Complete the official Form 122A-1 and 122A-2
• Ensure you meet other Chapter 7 eligibility requirements
• Gather documentation for your bankruptcy petition
• Consider whether Chapter 7 is the best option for your situation

If the calculator shows you’re above the median, don’t give up yet. You may still qualify for Chapter 7 if:

• Your actual expenses are high enough to pass Step 2
• You can document special circumstances (serious medical condition, active military duty)

Or, in some cases,  Chapter 13 bankruptcy may better suit your needs. Chapter 13 places your debt in a three- to five-year repayment plan. The plan must include repayment of mandatory debts, such as priority and secured debts, as well as a portion of what you owe to nonpriority, unsecured creditors.

Required Chapter 7 Bankruptcy Forms

You must complete specific forms for the Chapter 7 means test. Contact a local bankruptcy attorney if you need help filling out these forms.

• Form 122A-1 or Chapter 7 Statement of Your Monthly Income
• Form 122A-2 or Chapter 7 Means Test Calculation
• Form 122A-1Supp or Statement of Exemption from Presumption of Abuse Under § 707(b)(2)

These forms are available online. You can also get a hard copy of these forms from your local U.S. Bankruptcy Court Clerk.

Get Help from a Bankruptcy Attorney

If you have questions about the means test or explaining special circumstances with your bankruptcy case, contact a bankruptcy attorney. They can review the details of your case and explain your next steps.