Bankruptcy Means Test 2026: Do You Qualify for Chapter 7?
The means test is the calculation that decides whether you qualify for Chapter 7 bankruptcy or are pushed toward Chapter 13 instead. It’s formulaic, based on official government figures, and you can generally work through it yourself before deciding whether to file. Here’s exactly how it works.
Who has to take it
The means test only applies if your debts are “primarily consumer debts” — credit cards, medical bills, personal loans, and similar. If most of your debt is business-related, you’re exempt from the means test entirely and can file Chapter 7 regardless of income. Certain disabled veterans whose debt was incurred primarily during active duty are also exempt under a specific statutory carve-out.
Step one: compare your income to the state median
First, calculate your “current monthly income” — average gross income from all sources over the six full calendar months before you file, then annualized. This includes wages, self-employment income, and most other regular income, though Social Security benefits are specifically excluded by statute. Compare that annualized figure to the median income for a household of your size in your state. The U.S. Trustee Program publishes these median income figures and updates them periodically, so always check the current published table for your state and household size directly on the U.S. Trustee Program’s website rather than relying on a number that may be out of date — these figures change and using a stale one can lead you to the wrong conclusion. If your income is at or below the median for your household size, you pass the means test and qualify for Chapter 7 without further calculation.
Step two: if you’re over the median
If your income is above the median, you move to a second, more detailed calculation using official Form 122A-2. This subtracts allowed expenses from your current monthly income to arrive at your “disposable income.” Allowed expenses include IRS-published national and local standards for categories like food, clothing, housing, and transportation (not necessarily your actual spending, but standardized allowances), plus certain actual expenses like secured debt payments, taxes, and mandatory payroll deductions. What’s left after all deductions is multiplied by 60 to project your disposable income over a five-year period.
What the result means
If the projected disposable income is below a lower threshold, you pass the means test and can still file Chapter 7 despite being above the median income. If it’s above an upper threshold, you’re presumed to be abusing Chapter 7 and are generally expected to file Chapter 13 instead, where that disposable income would go toward repaying creditors through your plan. If your result falls between the two thresholds, the outcome depends on a further comparison against your general unsecured debt, and the specific dollar thresholds for each tier are set and periodically adjusted by statute, so again, verify the current figures rather than assuming last year’s numbers still apply.
Special circumstances
The means test allows for a “special circumstances” adjustment if your standard calculation doesn’t reflect your real ability to pay — for example, a serious medical condition, a call to active military duty, or another documented and significant change in circumstances. This requires additional documentation and isn’t automatic, but it exists specifically because the formula doesn’t account for every real situation.
Failing the means test isn’t the end of the road
If you don’t pass the means test for Chapter 7, you’re not barred from bankruptcy altogether — you simply file Chapter 13 instead, which has no income ceiling and is designed precisely for filers whose income is too high for Chapter 7 but who still need debt relief. Many filers who fail the means test end up keeping more property under Chapter 13 than they would have under Chapter 7 in the first place, since Chapter 13 is built around keeping your home and car while paying down what you owe.
Running the numbers yourself
Because the means test relies on official, regularly updated figures for median income and IRS expense standards, the most reliable way to run your own numbers is directly against the current published tables from the U.S. Trustee Program and the IRS, or through a bankruptcy intake tool that pulls those figures automatically. If your income is close to the median or your calculation is landing near a threshold, it’s worth having a bankruptcy attorney double-check the math before you file, since a miscalculated means test can result in a case getting dismissed or converted after the fact.
