Means Test

The means test is what decides whether you’re actually eligible for Chapter 7 bankruptcy. It takes your average gross household income over the six months before you filed and compares it to the median for a household your size in your state. Come in at or below the median, and you’re automatically clear to file Chapter 7. Come in above it, and there’s a second, more detailed calculation — using IRS-published expense standards — that figures out how much disposable income you’d actually have left, and whether that’s high enough to push you toward Chapter 13 instead.

Those median income figures aren’t fixed — the U.S. Trustee Program updates them roughly twice a year based on Census data, and they vary by both state and household size. Because the numbers shift, this site’s means-test estimator walks through how the calculation actually works and links you to the current official table, rather than baking in a figure that could be out of date by the time you read it.

Once you know which chapter you qualify for, see Filing for Bankruptcy for what happens after the means test — the paperwork, the 341 meeting, and how long the rest of the process takes.

Frequently asked

What happens if my income is above my state's median?

You're not automatically disqualified from Chapter 7 — a second, more detailed calculation using IRS expense standards figures out how much disposable income you'd have left, and whether that's high enough to push you toward Chapter 13 instead.

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— US Debt Compass Editorial Team

Do the median income figures used in the means test ever change?

Yes — the U.S. Trustee Program updates them roughly twice a year based on Census data, and they vary by both state and household size, so it's worth checking the current official table rather than relying on an old figure.

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— US Debt Compass Editorial Team