Free Bankruptcy Means Test Calculator

Determine if you qualify for Chapter 7 bankruptcy in 5 minutes

Do I Qualify for Chapter 7 Bankruptcy?

The means test determines whether your income is low enough to file Chapter 7 bankruptcy. This free calculator uses official IRS standards and state median income data to estimate your eligibility. Complete the form below to get instant results.

How It Works: If your household income is below your state's median, you automatically qualify. If your income is above the median, we calculate your disposable income after allowable expenses. This takes about 5 minutes to complete.

Step 1: Basic Information

Your State *

Household Size * Include yourself, spouse, and dependents

Gross Monthly Income * Your total household income before taxes and deductions

Step 2: Monthly Deductions

Enter your actual monthly amounts for the following expenses. Leave blank if not applicable.

Taxes (Federal, State, Local, Payroll) Actual taxes withheld from paycheck

Mandatory Retirement Contributions Required (not voluntary) retirement deductions

Mandatory Payroll Deductions Union dues, uniform costs, etc.

Childcare Expenses Daycare, babysitting costs for work

Health Insurance Health insurance premiums

Disability Insurance

Health Savings Account

Court-Ordered Payments Child support, alimony you pay

Required Education Expenses Required for employment or disabled child

Child Support Paid for Other Children

Step 3: Housing & Utilities

Mortgage or Rent

Utilities (Electric, Gas, Water, etc.)

Step 4: Transportation

Vehicle Payment/Lease

Vehicle Operating Costs Gas, insurance, maintenance, registration

Public Transportation

Understanding the Means Test

What is the Bankruptcy Means Test?

The means test is a calculation required by bankruptcy law to determine whether you qualify to file Chapter 7 bankruptcy. It was created by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 to prevent abuse of the bankruptcy system by people who can afford to repay their debts.

How Does the Means Test Work?

Part 1: Compare to State Median Income

First, your average gross monthly income (over the past 6 months) is compared to the median income for your state and household size. If your income is below the median, you automatically pass the means test and qualify for Chapter 7. No further calculations needed.

Part 2: Disposable Income Calculation (if above median)

If your income exceeds the state median, you must complete Part 2 of the means test. This calculates your monthly disposable income by subtracting allowable expenses from your income. Allowable expenses include:

IRS National Standards for food, clothing, household supplies, and personal care
IRS Local Standards for housing and utilities
IRS Transportation Standards for vehicle ownership and operating costs
Actual expenses for taxes, insurance, childcare, healthcare, and court-ordered payments
Secured debt payments (mortgage, car loans)
Priority debt payments (recent taxes, child support arrears)

The Thresholds:

If your monthly disposable income × 60 is less than $8,175, you pass the means test
If it exceeds $13,650, you fail the means test and should file Chapter 13 instead
If it's between $8,175 and $13,650, additional calculations determine if you can pay 25% of unsecured debt

What Income is Included?

The means test includes all income received in the 6 months before filing (doubled to get annual income), including:

Wages, salary, tips, bonuses, commissions
Self-employment income (gross receipts minus ordinary business expenses)
Rental income
Interest, dividends, royalties
Pension and retirement income
Unemployment benefits
Workers' compensation
Disability payments (non-Social Security)
Regular contributions from others (family support)
Spouse's income (if filing jointly or combined household)

Not Included: Social Security benefits and payments received under the Social Security Act are excluded from the means test calculation.

What If I Don't Pass the Means Test?

If you don't pass the means test, you have several options:

File Chapter 13 Instead: Chapter 13 has no income limits (only debt limits). You'll repay debts through a 3-5 year plan based on your disposable income.
Wait and Retest: If your income recently dropped (job loss, reduced hours, retirement), wait a few months so the lower income is reflected in the 6-month average.
Argue Special Circumstances: You may be able to rebut the presumption of abuse by showing special circumstances (serious medical condition, military service, etc.).

Common Mistakes to Avoid

Using Current Income: The means test uses the 6-month average before filing, not current income
Forgetting Spouse's Income: Even if only one spouse files, both incomes may be included
Missing Allowable Deductions: Many people forget to claim all allowed expenses
Claiming Too Much: Only IRS-allowed amounts or actual costs (whichever is applicable) can be used
Incorrect Household Size: Include all dependents you support, not just those living with you

Important: This calculator provides an estimate only. The official means test (Form 122A-1 and 122A-2) is more detailed. Always consult with a bankruptcy attorney to ensure accurate calculations and proper filing.