The Bankruptcy Means Test Calculator determines Chapter 7 eligibility by comparing monthly income to the state median and calculating disposable income after BAPCPA expense deductions. The federal filter separating Chapter 7 liquidation candidates from those directed to Chapter 13 repayment plans.
$54,000.00
-$1,000.00
81.8
%
$3,400.00
$1,100.00
$66,000.00
$54,000.00
-$1,000.00
81.8
%
$3,400.00
$1,100.00
$66,000.00
Congress designed the bankruptcy means test in 2005 (BAPCPA) to prevent high-income filers from using Chapter 7 liquidation to discharge debts they could theoretically repay. The test is a two-stage filter: if your income falls below your state's median, you pass automatically; if not, a standardized expense deduction calculation determines whether your residual disposable income justifies Chapter 7 access or mandates Chapter 13 repayment instead. The calculator for bankruptcy means test applies both stages to your financial data.
The first step compares your average monthly income (CMI — Current Monthly Income) over the six calendar months before filing against the applicable state median income for your household size. CMI includes virtually all income sources — wages, rental income, business net income, pension, interest, regular contributions from others — with specific exclusions: Social Security benefits, payments to crime victims, and certain other categories listed in 11 U.S.C. § 101(10A).
If your CMI × 12 is at or below the state median for your household size, you pass the means test automatically and can file Chapter 7 without completing the disposable income calculation. State median income figures are published quarterly by the U.S. Trustee Program and vary substantially by state and household size — a 4-person household median ranges from approximately USD 72,000 in Mississippi to USD 120,000+ in Massachusetts. Use this online calculator with current UST median income data. The attorney fee calculator provides complementary legal cost planning tools.
If your income exceeds the state median, Stage 2 calculates whether "disposable monthly income" (DMI) exceeds USD 182.50/month (as of current thresholds) — the trigger for presumption of abuse. DMI = CMI minus allowable expenses, which include:
The specificity of the IRS allowances means the means test often bears little resemblance to actual household spending — it is a standardized formula, not a personal budget analysis.
Passing the means test establishes that you can file Chapter 7 — it does not establish that Chapter 7 is the strategically optimal choice. Key considerations beyond the means test: the non-dischargeability of certain debts (student loans, recent taxes, domestic support obligations, fraud-related debts) means Chapter 7 may provide only partial relief; Chapter 13 allows reorganization of secured debts and broader scope for retaining assets through a payment plan; the automatic stay and discharge timing differ between chapters; and state exemption laws determine what property you keep in Chapter 7 — which may make it more or less favorable than Chapter 13 depending on your asset profile. Always consult a bankruptcy attorney before filing. The pre-judgment interest calculator and legal calculators provide related financial legal planning tools.
The two primary personal bankruptcy options serve fundamentally different purposes:
Enter your average monthly income for the past six months. Find your state's applicable median monthly income from the U.S. Trustee Program's published tables (search 'UST means test data') for your household size. Enter monthly secured debt payments, priority debt payments, and IRS allowed living expenses. The calculator annualizes your income for comparison, shows the income gap versus state median, and computes monthly and five-year disposable income for Chapter 13 planning purposes.
If Income vs. State Median is negative (your income is below state median), you likely pass the first-stage means test for Chapter 7 eligibility. If positive, proceed to analyze Monthly Disposable Income. If monthly disposable is very low (under $182/month) or the 5-Year Disposable is under $10,950, you may still qualify for Chapter 7 under the second stage. A high 5-year disposable income signals that Chapter 13 will require substantial repayment to unsecured creditors.
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Income of $3,800 is $1,200 below the state median of $5,000. This debtor automatically passes Stage 1 of the means test and is presumptively eligible for Chapter 7.
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With income $1,500 above state median and $1,900/month disposable, this debtor exceeds the Chapter 7 abuse threshold. A Chapter 13 plan would require approximately $114,000 in total payments to unsecured creditors over five years.
Current monthly income (CMI) is not your income this month — it is the average monthly income from all sources received over the six calendar months before your bankruptcy filing date. It includes wages, self-employment income, rental income, interest, pension payments, and most other income. Social Security benefits are specifically excluded from the CMI calculation under the Bankruptcy Code.
The U.S. Trustee Program publishes updated means test data tables at its official website, including state median family income by household size. These figures are updated periodically based on Census Bureau data. Always use the table in effect on your bankruptcy filing date, as the figures change over time.
The IRS publishes standardized expense allowances used in the means test for housing, utilities, transportation, food, clothing, and healthcare. Debtors are allowed these standardized amounts regardless of their actual spending, except for certain secured debt and out-of-pocket healthcare costs where actual expenses may be used. IRS standards are updated annually and vary by geographic location and family size.
Failing the means test creates a rebuttable presumption of abuse, but it does not automatically disqualify you. You may rebut the presumption by demonstrating special circumstances — such as a medical catastrophe or a call to active duty — that justify additional expenses or reduced income. You may also choose to file Chapter 13 instead, which has no income ceiling requirement.
Chapter 13 plans run three years for debtors with income below the state median and five years for those above it. During the plan period, the debtor makes monthly plan payments to a trustee, who distributes funds to creditors according to the plan's priority structure. Secured creditors and priority creditors (taxes, domestic support) are paid first; general unsecured creditors receive any remaining disposable income.
Certain debts are non-dischargeable in bankruptcy regardless of which chapter is filed: student loans (unless undue hardship is proven), domestic support obligations (alimony and child support), most tax debts less than three years old, debts from fraud or false pretenses, criminal fines and penalties, and DUI-related personal injury debts. Understanding non-dischargeable debts is critical to assessing whether bankruptcy will actually provide meaningful relief.
Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date; Chapter 13 remains for 7 years. Both will significantly lower your credit score initially. However, many filers find their credit recovers meaningfully within 2–4 years of discharge, particularly if they take steps to rebuild credit responsibly. The discharge itself removes the burden of unpayable debt, which can accelerate financial recovery.
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