Bankruptcy Means Test Calculator

Take the Chapter 7 bankruptcy means test. Compare your income to your state's median, calculate disposable income with IRS-standard deductions, and determine if you qualify for Chapter 7 or need to file Chapter 13.

Important Disclaimer

This is a simplified means test estimate. The actual means test (Form 122A) has additional line items and requires exact 6-month income history. Consult a bankruptcy attorney before filing.

Step 1: Income vs. State Median

State

Household Size

Avg Monthly Income (CMI) ($)

6-month average. Excludes Social Security.

Your Annual Income$60,000

California Median (3-person)$116,541

Below median — you PASS the means test (eligible for Chapter 7)

Means Test Result

PASS — Chapter 7 Eligible

Your income ($60,000) is below the California median ($116,541). You qualify for Chapter 7.

Chapter 13 Alternative

Plan Length

3 years

Monthly Payment

Ch13 Eligible

Yes

Debt Limits (Ch13)

Secured: $1,580,125
Unsecured: $526,700

Calculation Breakdown

1.Monthly income (CMI): $5,000

2.Annualized: $60,000

3.California median for 3-person household: $116,541

4.Income is BELOW state median → PASS (eligible for Chapter 7)

Data Sources

Median income: DOJ US Trustee Program (effective April 1, 2026)
Living expense standards: IRS National Standards (effective April 21, 2025)
Transportation standards: IRS Local Standards (effective April 21, 2025)
Thresholds: $9,075 / $15,150 (effective April 1, 2025 through March 31, 2028)
Chapter 13 debt limits: effective April 1, 2025 through March 31, 2028

This is a simplified estimate of the Chapter 7 means test. The actual means test (Official Form 122A-1 and 122A-2) includes additional deductions and line items not covered here, including secured debt payments, priority debt payments, and county-specific housing allowances. Housing deductions in this calculator use your actual amounts rather than IRS local standards by county. Always consult a bankruptcy attorney for an accurate assessment.

Frequently Asked Questions

What is the bankruptcy means test?+

The means test determines whether you qualify for Chapter 7 bankruptcy (debt discharge) or must file Chapter 13 (repayment plan). It compares your income to your state's median for your household size. If you're below the median, you pass automatically. If above, a detailed calculation using IRS-standard deductions determines your disposable income.

What income counts for the means test?+

The means test uses your 'Current Monthly Income' (CMI) — the average of ALL income sources over the 6 calendar months before filing. This includes wages, commissions, bonuses, self-employment income, rental income, pensions, unemployment, and alimony received. Social Security benefits are excluded.

What if I fail the means test?+

If you fail, there is a 'presumption of abuse' for Chapter 7. You can still file Chapter 13 (3-5 year repayment plan), or you may be able to rebut the presumption by showing special circumstances (serious medical condition, active military duty, etc.). A bankruptcy attorney can help determine your options.

How often do median income figures change?+

The DOJ US Trustee Program updates state median income figures approximately every 6 months based on Census Bureau data. This calculator uses the most recent figures effective April 1, 2026. The disposable income thresholds ($9,075/$15,150) are adjusted every 3 years — current thresholds are effective April 1, 2025 through March 31, 2028.

What's the difference between Chapter 7 and Chapter 13?+

Chapter 7 discharges most unsecured debts (credit cards, medical bills) within 3-4 months but may require liquidating non-exempt assets. Chapter 13 creates a 3-5 year repayment plan based on your disposable income — you keep your assets but must make monthly payments. Chapter 7 requires passing the means test; Chapter 13 has debt limits ($526,700 unsecured / $1,580,125 secured as of April 2025).

What deductions are allowed?+

The means test allows IRS standard deductions for living expenses (food, clothing, personal care), out-of-pocket health care ($84/month under 65, $149/month 65+), transportation (ownership and operating costs), plus actual expenses for housing, utilities, taxes, health insurance, child care, and court-ordered payments. These deductions reduce your disposable income.

Does Social Security count as income?+

No. Social Security benefits (retirement, disability, SSI) are specifically excluded from the means test income calculation under 11 U.S.C. § 101(10A). This is one of the most important exclusions — if your only income is Social Security, you automatically pass the means test.

Can I file Chapter 7 if I fail the means test?+

Possibly. Failing creates a 'presumption of abuse' that can be rebutted. Special circumstances that may overcome the presumption include: serious medical conditions, active military duty, or other documented events beyond your control that reduce income or increase expenses. The court ultimately decides. Additionally, if your debts are primarily business debts (not consumer debts), the means test does not apply at all.