Alabama Chapter 7 Means Test Calculator (2026)
The Alabama Chapter 7 Means Test (Part 1)
Compare your household income to the Alabama median for your household size, using U.S. Trustee figures effective July 15, 2026. Nothing you enter is stored.
Alabama Chapter 7 Six-Month Income Worksheet
Enter each of the six complete calendar months used for the current monthly income calculation. The worksheet totals the period, calculates the monthly average, and annualizes it. Nothing entered here is stored.
| Household Size | Annual Median | Monthly Equivalent | Six-Month Equivalent |
|---|---|---|---|
| 1 | $64,321 | $5,360 | $32,161 |
| 2 | $77,451 | $6,454 | $38,726 |
| 3 | $92,698 | $7,725 | $46,349 |
| 4 | $106,740 | $8,895 | $53,370 |
For households larger than four, add $11,100 per additional person to the annual figure. Use the official table in effect on the expected filing date.
An Alabama Six-Month Example
Assume a two-person Alabama household received $5,809 in each of the six complete calendar months before filing. The six-month total would be $34,854, the current monthly average would be $5,809, and the annualized income would be $69,708. That is $7,743 below the two-person Alabama median shown on this page. This illustrates the first income comparison only. It does not decide the full means test or Chapter 7 eligibility.
How Alabama Changes The Means-Test Estimate
The first comparison is not a national income limit. It uses the Alabama median for the household size and the government table in effect on the filing date. On this page, the annual figures run from $64,321 for one person to $106,740 for four people, a difference of $42,419. A five-person Alabama household would use $117,840 before moving to the expense portion of the test.
An Alabama Close-To-The-Line Example
If a two-person household averaged $6,325 monthly during the six-month lookback period, its annualized income would be $75,900. That is only $1,551 below the current two-person Alabama median used here. A bonus, job change, unpaid leave, or a different filing month could change that comparison, which is why the six actual calendar months matter.
Where Location Inside Alabama Can Matter
Alabama is served by the Northern, Middle, and Southern Districts of Alabama. The correct filing district depends on venue facts such as where a person has lived or kept a principal residence, assets, or business. Part 2 can also use location-sensitive housing and utility standards. Those allowances may differ by county inside Alabama, so a statewide median-income result should not be treated as a complete eligibility decision.
| Item | Why It Matters In Alabama |
|---|---|
| Filing Date | Controls which U.S. Trustee median table applies. |
| Household Size | Changes the Alabama income threshold, including the added amount above four people. |
| Six-Month Income | Uses income received in the six complete calendar months before filing, not simply current salary. |
| County | Can affect location-based housing and utility allowances used in Part 2. |
| Filing District | Determines the federal bankruptcy court that handles the case. |
Records To Gather For An Alabama Review
- Pay statements and other income records for each of the six complete lookback months.
- Documents supporting household size and regular contributions from other household members.
- Housing, utility, vehicle, tax, insurance, child care, support, and secured-debt amounts that may matter in Part 2.
- The expected filing date and county, especially when the result is close to the median.
Official Resources: U.S. Trustee Means-Testing Data · IRS Local Housing And Utility Standards · U.S. Courts Court Locator
The Two Parts Of The Alabama Means Test
Part 1 in Alabama is the income screen above: your annualized income against the Alabama median for your household size. Clear it and you generally qualify. If your Alabama income is higher, Part 2 deducts housing, transportation, taxes, and support on Form 122A-2, and a large share of Alabama filers pass there. Social Security generally does not count. Our national means test guide covers Part 2 in detail.
If You Are Above The Alabama Median
Being above the Alabama median does not end it. Part 2 subtracts allowed expenses, and many above-median Alabama filers still pass. If Chapter 7 does not fit, Chapter 13, debt settlement, or a debt management plan might. Bankruptcy is a lasting decision, so compare the options first.
If Chapter 7 Is Not The Right Fit In Alabama
Not everyone in Alabama who can file Chapter 7 should, and not everyone qualifies. If bankruptcy is not the path, an Alabama debt settlement program may reduce what you owe without a court filing; compare the cost, credit impact, and timeline first. CuraDebt is a free service that reviews the information you submit and, where appropriate and permitted by law, matches you with independent, licensed providers for debt relief or tax resolution. CuraDebt is not a law firm and does not provide legal or tax advice. Results vary and are not guaranteed.
Frequently Asked Questions
What is the income limit for Chapter 7 in Alabama?
It is the Alabama median family income for your household size. Effective July 15, 2026, it is $64,321 for 1 person, $77,451 for 2, $92,698 for 3, and $106,740 for 4, adding $11,100 per additional person. At or below that Alabama figure, you generally pass Part 1.
What if my income is above the Alabama median?
Being above the Alabama median does not automatically disqualify you. Part 2 of the means test subtracts allowed living expenses, and many above-median Alabama filers still qualify for Chapter 7 after those deductions.
Does this calculator run the full Alabama means test?
It covers Part 1 only, the income comparison against the Alabama median. Part 2 deductions on Form 122A-2 are not calculated here, so use this as a first read and confirm with an Alabama bankruptcy attorney.
Is Social Security counted in the Alabama means test?
Social Security benefits are generally excluded from current monthly income for the means test, though most other income is included. A bankruptcy attorney can confirm what counts in your specific situation.
Does CuraDebt give legal advice or file bankruptcy in Alabama, and is it a law firm?
CuraDebt is a free service that reviews the information you submit and, where appropriate and permitted by law, matches you with independent, licensed providers for debt relief or tax resolution. CuraDebt is not a law firm and does not provide legal or tax advice. Results vary and are not guaranteed.
Related Resources
- National Chapter 7 means test calculator
- Bankruptcy exemptions calculator
- Debt settlement vs. bankruptcy
- All debt and tax calculators