Bankruptcy Means Test Calculator
Instantly check your eligibility for Chapter 7 (Debt Discharge) vs. Chapter 13 (Repayment).
Compliance Disclaimer
This tool uses estimated 2025 Census Bureau median income data. It is for informational purposes only and does NOT constitute legal advice. Actual eligibility depends on many factors including specific deductions and local court rules. Only a licensed bankruptcy attorney can confirm your options.
Likely Eligible for Chapter 7
Your annual income of is BELOW the median income of for a household of .
This suggests you may pass the "Means Test," potentially allowing you to discharge unsecured debts (like credit cards and medical bills) through Chapter 7 bankruptcy.
Next Steps
Consult with a local bankruptcy attorney to verify your eligibility and discuss specific exemptions for your property.
Likely Chapter 13 (Repayment Plan)
Your annual income of is ABOVE the median income of for a household of .
Because you earn more than the state median, a "presumption of abuse" may arise if you file for Chapter 7. You would likely be required to file Chapter 13, which involves a 3-5 year court-monitored repayment plan.
Avoid Bankruptcy?
Since you have income available to repay debt, you might be able to pay it off yourself using the Debt Snowball or Avalanche methods, avoiding the legal restrictions of bankruptcy.
Calculate Self-Payoff Plan →You May Also Need
How the Chapter 7 Means Test Works
The "Means Test" is a formula used by the U.S. Bankruptcy Courts to determine if you have the resources to pay back some of your debt. The first step involves comparing your household's average annual income (based on the last 6 months) against the Census Bureau Median Income for a family of your size in your state.
If your income is below the median, a "presumption of abuse" typically does not arise, meaning you likely qualify to file for Chapter 7 bankruptcy. Chapter 7 allows for the discharge of most unsecured debts, such as credit cards and medical bills, giving you a "fresh start" relatively quickly (usually within 3-6 months).
If your income is above the median, passing the means test becomes more complex. You must calculate your disposable income by subtracting allowed expenses (based on IRS standards) from your gross income. If you still have sufficient disposable income, you may be required to file under Chapter 13, which involves a 3-to-5-year repayment plan overseen by a trustee. If you prefer to avoid bankruptcy, consider using the Debt Snowball Calculator to engage a self-directed payoff plan.
Frequently Asked Questions
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 is a "liquidation" bankruptcy that discharges (eliminates) most unsecured debts but may require selling non-exempt assets. It is typically faster. Chapter 13 is a "wage earner's plan" that reorganizes your debt into a monthly payment plan lasting 3 to 5 years, allowing you to catch up on missed mortgage or car payments and keep your assets.
Can I file bankruptcy if I make more than the median income?
Yes, but it is more difficult to qualify for Chapter 7. High-income earners usually file under Chapter 13 unless they can prove significant allowable expenses (like high secured debt payments) that leave them with little disposable income. If you don't qualify for Chapter 7, check our Consolidation Calculator to see if a loan might help.
Does the Means Test look at gross or net income?
The Means Test looks at your Gross Income (before taxes and deductions) averaged over the 6 months prior to filing. It effectively annualizes this 6-month average to compare against the annual state median figures.
How often do these income figures change?
The U.S. Census Bureau median income data used by the Department of Justice for bankruptcy purposes is updated roughly every 6 months (typically around April 1st and November 1st). Our calculator uses the most relevant 2025 estimates available.
Bankruptcy Glossary
Discharge
A court order that releases the debtor from personal liability for certain specific types of debts, meaning you are no longer legally required to pay them.
Automatic Stay
An injunction that immediately stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.
Trustee
An individual appointed by the court to oversee the bankruptcy case, review the debtor's finances, and (in Chapter 7) liquidate non-exempt assets to pay creditors.
Secured vs. Unsecured Debt
Secured debt is backed by collateral (like a house or car). Unsecured debt (like credit cards or medical bills) has no collateral backing and is most often discharged in Chapter 7.