Bankruptcy Means Test Calculator
Calculate Chapter 7 bankruptcy means test eligibility using current monthly income compared to state median, then disposable income if above. The two-step process every Chapter 7 debtor must pass to file.
The Two-Step Means Test
Step 1 (Median Income Test): compare your 6-month average current monthly income (× 12 = annualized) to your state's median for your household size. Below median = automatically pass, Chapter 7 available. Above median = proceed to Step 2. Step 2 (Disposable Income Test): apply IRS local allowances for housing, transportation, food. If disposable income over 60 months × 12 falls below threshold ($9,075 in 2026), you pass.
Current Monthly Income (CMI) — 6-Month Average
Average gross income from ALL sources over the 6 months immediately before filing. Includes: wages, self-employment, rental income, retirement distributions, child support received, spouse income (even if not filing jointly). Excludes: Social Security retirement benefits, certain VA benefits, payments from War Crimes / Terrorism victim compensation. × 12 for annualized comparison to median.
State Median Income (2026 Updated)
Median income data updates ~April each year. 2026 examples (Census Bureau via UST): California 1-person $76,290, 2-person $96,997, 3-person $108,894, 4-person $124,395. Texas 1-person $58,925, 2-person $76,853, 3-person $85,562, 4-person $98,894. Add $9,900 per family member beyond 4. Always use the current US Trustee Census table for filing.
What If You Fail the Means Test?
Failing Chapter 7 means test pushes you to Chapter 13 (3-5 year repayment plan). Chapter 13 lets you keep property, pay creditors a portion, discharge remainder. Alternative: wait 6 months — if income drops, retest. Special circumstances exception possible (medical bills, military deployment) but requires court approval. Consult bankruptcy attorney immediately.
Sources: 11 USC §707(b), US Trustee Program median income tables (April 2026 update). Last updated: May 2026. Not legal advice.