Chapter 7 Means Test 2026: Income Limits, How It Works, and How to Pass

The Chapter 7 means test is the income test that decides whether you qualify for Chapter 7 bankruptcy in 2026. Your average income over the previous six months is compared to your state's median income for your household size. Below the median, you pass; above it, your allowed expenses are subtracted, and your 60-month disposable income decides.

Key facts

• Step one compares your six-month average monthly income to the U.S. Trustee Program's median income table for your state and household size.
• Below $10,275 of 60-month disposable income, no presumption of abuse arises under 11 U.S.C. §707(b)(2) (figures adjusted effective April 1, 2025).
• At $17,150 or more of 60-month disposable income, abuse is automatically presumed.
• Between $10,275 and $17,150, abuse is presumed only if the amount would repay at least 25% of your nonpriority unsecured debts.
• The Chapter 7 filing fee is $338, waivable below 150% of the federal poverty guidelines.

What Is the Chapter 7 Means Test?

Chapter 7 is the U.S. bankruptcy that lets qualifying individuals erase most unsecured debts — credit card balances and medical bills, for example — usually within a few months. The means test is the two-step income formula in 11 U.S.C. §707(b), added by Congress in 2005, that decides whether Chapter 7 relief would be an abuse. It applies only to individual debtors whose debts are primarily consumer debts — personal, family, or household obligations. Three groups skip it: filers with primarily business debts, certain disabled veterans, and service members on qualifying active duty, under 11 U.S.C. §707(b)(2)(D).

Step 1: Compare Your Income to the State Median

Your "current monthly income" is your average gross monthly income from nearly all sources over the six full calendar months before you file — wages, business and rental income, unemployment benefits, and similar payments; Social Security benefits are excluded by statute.

That average is annualized and compared to your state's median income for your household size. The U.S. Trustee Program publishes these tables, based on Census Bureau data, and updates them several times a year; the table in effect on your filing date controls. At or below the median, you pass — complete Official Form 122A-1 and move on.

Step 2: Calculate Your Disposable Income

Above the median, you complete Official Form 122A-2, subtracting allowed expenses from your current monthly income: some follow IRS National and Local Standards for housing, transportation, and basic living costs; others use actual spending — income taxes, health and disability insurance, childcare, and court-ordered support. The result is your monthly disposable income; multiplied by 60, it projects your five-year ability to pay and decides whether abuse is presumed.

The $10,275 and $17,150 Thresholds Explained

These figures are adjusted for inflation every three years under 11 U.S.C. §104. The current figures took effect April 1, 2025 and apply to cases filed through March 31, 2028. Below $10,275 in 60-month disposable income, no presumption of abuse arises. At $17,150 or more, abuse is automatically presumed. Between the two, abuse is presumed only if the 60-month total would repay at least 25% of your nonpriority unsecured debts — debts with no collateral and no legal priority, mainly credit cards, medical bills, and personal loans.

For example: $250 a month × 60 = $15,000, inside the middle band. With $40,000 in nonpriority unsecured debts, $15,000 is 37.5% — above 25%, so the presumption arises. At $170 a month, the total is $10,200, below $10,275, so no presumption arises.

Legitimate Ways to Pass the Means Test

Time your filing. If your income recently dropped — a job loss, fewer hours, an ended contract — wait until the lower earnings dominate the six-month window.

Claim every allowed deduction. Mortgage or rent, car costs, income taxes, mandatory payroll deductions, health insurance premiums, childcare, and court-ordered support all reduce your disposable income.

Get the household size right. Count everyone you financially support in your home, not just your tax-return dependents — a larger household raises the median you are compared against. Stay honest throughout: the trustee reviews pay stubs, tax returns, and bank statements.

Document special circumstances. Serious medical costs or recent military service can rebut the presumption, but only with itemized records and a sworn statement.

What Happens If You Fail the Means Test

The U.S. trustee must file a statement on abuse within 10 days after your first meeting of creditors. If the presumption stands, the case may be dismissed or converted to Chapter 13 — the repayment-plan chapter — with your consent; our step-by-step 2026 filing guide covers both paths.

Passing is no guarantee: courts can still dismiss under the "totality of the circumstances" when your actual budget shows debts could be repaid.

What It Costs to File After You Pass

The Chapter 7 filing fee is $338, payable in up to four installments over 120 days or waived below 150% of the federal poverty guidelines. The two required courses cost $50 to $100, and routine Chapter 7 attorney fees average $1,200 to $2,000. See our guide on choosing a bankruptcy lawyer, and what happens to your credit score after bankruptcy.

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This article is general information, not legal or financial advice; bankruptcy rules are applied differently from district to district, so speak with a licensed bankruptcy attorney before you file.

Frequently Asked Questions

What income disqualifies you from Chapter 7 in 2026?

No single figure disqualifies everyone — your income is compared to your state's median for your household size. Above the median, abuse is presumed only if your 60-month disposable income reaches $17,150, unless you show documented special circumstances.

Can I still pass the means test if my income is above the median?

Yes. Above-median filers complete the second part on Form 122A-2 — below $10,275 of 60-month disposable income, no presumption arises.

What counts as household size on the means test?

Everyone you financially support in your home — not just your tax-return dependents. A larger household raises the median income you are compared against, which makes the first step easier.

Do I need the means test if my debts are mostly business debts?

No. The means test applies to individual debtors whose debts are primarily consumer debts. Primarily business debts fall outside the presumption-of-abuse rules.

If I fail the means test, can I ever file Chapter 7 later?

Possibly — a later income drop can change the six-month lookback. Note the waiting period: generally eight years must pass between two Chapter 7 discharges.