Bankruptcy Means Test Calculator
Determine if you might qualify for Chapter 7 bankruptcy based on your income and expenses
Additional Information and Definitions
Annual Household Income
Enter your total annual household income (pre-tax).
Household Size
Number of people in your household.
Monthly Expenses
Enter your total monthly expenses.
Universal Means Test Approximation
Compare your annual income and disposable income to a naive median formula
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Understanding the Simplified Means Test
A naive approach to universal means tests, ignoring specific local laws. Actual results may vary.
Median Income:
A baseline estimate that changes with household size to determine if your annual income is under certain thresholds.
Disposable Income:
Your monthly leftover after paying essential expenses, used to see if you can repay debts.
60-Month Calculation:
The test multiplies monthly disposable income by 60 to see how much could be paid over five years.
Chapter 7 Qualification:
If you fall below the median or have limited disposable income, you may qualify for Chapter 7 relief.
5 Facts About Means Testing You Need to Know
Means testing helps determine eligibility for debt relief, but there's more than meets the eye.
1.Local Laws Differ
Every region or country has different thresholds and methods of calculation. This tool uses a generic approach.
2.Household Size Impacts Median
A larger household typically has a higher median income threshold, meaning your limit goes up with each extra family member.
3.Expenses Matter
Even if your income is high, substantial monthly expenses can reduce disposable income enough to qualify for relief.
4.Changes Over Time
Median incomes and expense guidelines can be updated regularly, so check current data for accurate results.
5.Professional Help Recommended
This calculator is a starting point. For exact qualification, consult a licensed attorney or financial advisor.