Debt Management
Determine if you might qualify for Chapter 7 bankruptcy based on your income and expenses
Compare your annual income and disposable income to a naive median formula
The bankruptcy means test determines whether you qualify for Chapter 7 bankruptcy (immediate debt discharge) or must file Chapter 13 (repayment plan). It compares your income to state median income and analyzes expenses to determine disposable income available for debt repayment.
The calculator takes your household size and gross monthly income, then compares it to state median income levels. If below median, you likely qualify for Chapter 7. If above, it deducts allowed expenses to determine monthly disposable income. High disposable income may require Chapter 13.
Annual Income = Monthly Income × 12. Median Comparison = Annual Income vs. State Median for Household Size. If above median: Disposable Income = Monthly Income − Allowed Expenses. Chapter 7 qualification typically requires disposable income below certain thresholds.
Chapter 7 discharges most unsecured debt immediately but may require asset liquidation. Chapter 13 requires a 3-5 year repayment plan but lets you keep assets. Your means test result determines which you qualify for.
Include all regular income: wages, self-employment, rental income, pension, investment returns, and support payments. Use the 6-month average before filing.
Yes, in some cases. If your income is above median but special circumstances exist (job loss, medical expenses), you may still qualify. A bankruptcy attorney can evaluate your options.
