Chapter 7 Means Test Calculator
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If you're thinking about filing Chapter 7 bankruptcy, one of the first steps is taking the "means test." This test helps figure out whether you qualify based on your income and expenses. The idea behind it is simple: If you can afford to pay back some of your debts, the law may not allow you to wipe them out through Chapter 7. But if your income is low enough — or your necessary expenses are high — you may still qualify. The test has two main parts. First, you'll compare your income to the average income in your state. If your income is below the limit, you're done — you qualify. If it's above, you'll move on to a second part that looks more closely at your expenses to see how much money you really have left over.
Written by Attorney Andrea Wimmer. Legally reviewed by Jonathan Petts
Updated August 22, 2025
What Is the Chapter 7 Means Test?
The Chapter 7 means test is a way to figure out if you qualify to file for Chapter 7 bankruptcy. It looks at your income and certain living expenses to see if you can afford to pay back some of your debts.
If the test shows you don’t have enough income left over after covering necessary expenses, you may be able to erase your debts through Chapter 7. That’s why it’s called a “means test” — it checks whether you have the means (or ability) to pay.
How Does the Chapter 7 Means Test Work?
Here's a quick overview of the means test process.
Gather your income info. Add up all income you (and your spouse, if filing together) received in the past six full months before filing.
Find your state’s median income. Look up the current median income for your household size in your state using the U.S. Trustee’s website.
Compare your income to the median. If your income is below the median → you pass the means test. If your income is above the median → move to Step 4.
List allowed monthly expenses. Use IRS guidelines and actual costs (for things like housing, food, and car payments) to calculate necessary expenses.
Calculate your disposable income. Subtract your allowed expenses from your income to see how much is left over.
Check if you qualify. If your leftover income isn’t enough to repay a meaningful portion of your debts, you may still qualify for Chapter 7.
📌 TIP: If you're eligible to use Upsolve's free filing tool, it will do Steps 1-3 above for you.
How To Compare Your Income to the Median for the Bankruptcy Means Test
The first part of the means test checks if your income is low enough to automatically qualify for Chapter 7.
💰 To figure this out, you need to calculate your gross income — the total amount you earn before taxes or deductions.
🗓️ But the test doesn’t look at your most recent paycheck. It uses your income from the past six full months, not counting the month you file. For example, if you file in June, you’ll use income from December 1 through May 31.
This timing matters — especially if your income varies or you get a bonus. A big one-time payment could make it harder to qualify if it falls within your six-month window. Some people wait a few months to file so that kind of income won’t count.
What Income Sources Count on the Means Test?
Here are some common sources of income that need to be included in the means test:
Wages or salary before taxes or deductions
Alimony
Child support (whether it’s court-ordered or not)
Regular financial help from others, like a partner, parent, or roommate
Business or self-employment income, including income from rental properties
Retirement income or pension payments
Social Security retirement income
However, there are some types of income you don’t have to include:
SSI (Supplemental Security Income)
SSDI (Social Security Disability Insurance)
Certain military-related benefits — thanks to the HAVEN Act, veterans and active-duty service members don’t have to count income tied to their service.
How To Find Your State’s Median Income
Now that you’ve totaled your income, you’ll need to compare it to the median income for your state and household size.
These numbers are based on data from the U.S. Census Bureau and are updated a few times each year. You can find the most current numbers on the Office of the U.S. Trustee (UST) website.
⚠️ Don’t rely on a Google search. The median income changes regularly, and only the UST website has the official, up-to-date info.
Look for the section titled “Median Family Income Based on State/Territory and Family Size.”
Part 2: Account for Expenses (if Necessary)
If your income is above the median, the second part of the means test looks at your expenses to figure out whether you still qualify for Chapter 7.
At a basic level, this step calculates your disposable income. Disposable income is the money you have left over after covering allowed monthly expenses.
If you don’t have enough disposable income to pay back at least 25% of certain debts over the next five years, you may still qualify for Chapter 7.
📌 Note: Upsolve’s free filing tool is only available to people whose income is below the median, since the second part of the means test involves more complex legal analysis.
What Types of Expenses Can Be Deduced in Part 2 of the Means Test?
Generally speaking, the types of allowed expenses you can deduct in part two of the means test analysis fall into four categories:
Expenses based on national standards established by the IRS
Payments to secured and priority creditors
Actual reasonable and necessary expenses
Administrative expenses
Expenses Based on National Standards Established by the IRS
You don’t deduct your actual expenses for a specific category but rather the IRS standard amount set for that category. These expenses include the following subcategories:
Food, clothing, and other items
Out-of-pocket health care expenses
Housing and utilities
Transportation
Payments to Secured and Priority Creditors
If you’re keeping the property securing a certain debt, the payment on it can be deducted as an expense.
The most common examples of secured debt payments eligible for deduction are your home mortgage and car loan payments. E
Expenses related to priority debts, such as tax debts, that won’t be discharged as part of the Chapter 7 case can also be deducted.
Actual Expenses
You can increase some expense deductions if you can prove your actual, reasonable, necessary expenses for a particular category are greater than the number allowed under the IRS local standards.
Additionally, certain actual expenses, including court-ordered domestic support obligations, are considered part of this analysis. But it doesn’t include payments subject to a court order, such as a writ of garnishment, that have to stop once the bankruptcy case has been filed.
Administrative Expenses
Since the purpose of the test is to determine how much your creditors would receive if you filed Chapter 13 instead of Chapter 7 bankruptcy, the means test accounts for the administrative expenses that would be part of the Chapter 13 case.
These expenses reduce the amount of money that would go to unsecured creditors in a Chapter 13 case. Since that’s what matters for determining your eligibility for Chapter 7, it’s important to remember to account for these.
If there is not enough money left over to pay at least 25% of your unsecured debts over a hypothetical five-year Chapter 13 plan, you’re eligible for relief under Chapter 7 of the Bankruptcy Code.
What Happens if You Don’t Pass the Means Test?
If you don’t pass the means test, you won’t be eligible to file Chapter 7, but that’s not your only bankruptcy option. You can look into filing Chapter 13 bankruptcy instead.
In Chapter 13, you're required to repay a portion of your unsecured debts — like credit card bills and medical bills — over a 3–5 year repayment plan. You'll need to prove to the bankruptcy court that you have enough income to make the required monthly payments. This often means sticking to a strict budget for the duration of the repayment plan.
Chapter 13 is more complicated than Chapter 7, so it's a good idea to get legal advice so you can decide if this is the best way for you to address your debt. Most bankruptcy attorneys offer free consultations.
You can also speak with a nonprofit credit counselor to learn about other debt relief options. Upsolve can connect you with an NFCC-accredited nonprofit credit counseling agency for a free consultation.
Why Do We Have the Means Test?
Congress added the means test in 2005 to prevent people from using Chapter 7 if they could afford to pay back some of their debts.
The means test is outlined in the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). It requires the means test for anyone filing Chapter 7 to deal with consumer debts like credit cards, medical bills, and personal loans.
If your income is too high and you don’t qualify based on your expenses, the court might say there’s a “presumption of abuse.” That doesn’t mean you’re doing anything wrong, but it does mean you’ll need to show that Chapter 7 is still the right option for your situation. Otherwise, you may have to file under Chapter 13 instead.
Let's Summarize...
The Chapter 7 means test determines whether allowing someone to discharge their debts would be an abuse of the bankruptcy system. If your gross income based on the six months before filing bankruptcy is below your state's median income, you pass the means test. Otherwise, a detailed legal analysis is required to determine whether Chapter 7 is an option for you.
