Chapter 7 Means Test 2026: How It Works And Whether You'd Pass
Chapter 7 Means Test First-Screen Calculator
Compare annualized household income with the current median figure you enter for your state and household size.
Curious where you'd likely land on the means test? Take the 10-second check below.
How the Chapter 7 means test actually works
The "means test" sounds intimidating, but it is really a two-part filter that decides whether your income is low enough to file Chapter 7 bankruptcy. It exists to steer higher earners toward a Chapter 13 repayment plan instead. Here is how the test works, step by step, so you understand what the calculator above is really checking. This page is educational only, it is not legal advice, and passing or failing here is not a substitute for a licensed attorney's opinion.
Step 1: Add up your "current monthly income"
The test starts with your average gross monthly income over the six calendar months before filing, from nearly every source, wages, self-employment, and more, then multiplies it by 12 to get an annualized figure. Note the quirk: it is a backward-looking six-month average, so a recent raise or a recent job loss can move you.
Step 2: Compare it to your state's median income
Your annualized income is compared to the median income for a household of your size in your state, updated periodically by the U.S. Trustee Program. If you are at or below the median, you pass the means test right there, no further math. This is the fast lane, and most filers who qualify pass here.
Step 3: If you're over the median, run the second part
Being above the median does not automatically disqualify you. You move to the second part, which subtracts allowed living expenses, many based on IRS national and local standards for things like food, housing, and transportation, from your income to calculate your "disposable income." If what is left over a five-year window is small enough, you can still pass.
Step 4: Understand what passing (or failing) means
Passing means Chapter 7 is on the table, not that you must file it. Failing generally points you toward Chapter 13, where you repay part of your debt over three to five years. Either way, the means test is a legal screening tool, and the official calculation runs on precise, current figures and forms that change over time.
This is an estimate, not a verdict
It is also worth stepping back and asking whether bankruptcy is even the path you want. For unsecured debt like credit cards and medical bills, many people resolve the situation without filing at all. It helps to see the full range of debt relief options before assuming the courtroom is the only door.
If you'd rather not file at all
Whether you pass or fail the means test, bankruptcy is a serious step with a lasting, public record. The most common alternative for unsecured debt is settlement, where a company negotiates settlements on unsecured debts so you resolve them for a negotiated amount, no court filing, no means test. It only works on unsecured debt, and under federal rules a reputable provider cannot charge a fee until a debt is actually settled.
Your next step
You do not have to figure this out alone. A quick review can line up the non-court options, settlement, a debt management plan, consolidation, against your actual numbers, so you see whether you can avoid filing before you commit to it. It takes about a minute and there is no obligation. For the means test and any bankruptcy filing itself, consult a licensed attorney in your state.
Frequently Asked Questions
What is the Chapter 7 means test?
The Chapter 7 means test is a two-part filter that determines whether your income is low enough to file Chapter 7 bankruptcy. It compares your annualized six-month income to your state's median for your household size, and if you are above the median, a second calculation subtracts allowed living expenses to check your disposable income.
How do I pass the Chapter 7 means test?
You pass automatically if your annualized current monthly income is at or below your state's median income for your household size. If you are above the median, you can still pass the second part if your disposable income, after subtracting allowed IRS-standard and actual expenses, is low enough over a five-year window.
What income counts for the means test?
The test uses your average gross monthly income over the six full calendar months before filing, from nearly all sources, annualized by multiplying by twelve. Because it is a backward-looking six-month average, a recent raise or job loss can change your result significantly.
What are the 2026 median income figures for the means test?
Median-income thresholds vary by state and household size and are updated periodically by the U.S. Trustee Program. As a rough 2026 sense of scale, single-earner medians often sit in the low-to-mid $60,000s and larger households well higher, but only the current official figure for your specific state and family size governs your test.
Does being over the median mean I can't file Chapter 7?
No. Being above the median simply moves you to the second part of the test, which subtracts allowed living expenses to calculate disposable income. Many over-median filers still qualify because real expenses like a mortgage, childcare, and health costs reduce disposable income below the threshold.
Is this Chapter 7 means test calculator legal advice?
No. The check on this page is a simplified, educational illustration, not the official means test and not legal advice. The real test uses current median figures, IRS expense standards, and official bankruptcy forms. Only a licensed bankruptcy attorney can tell you whether you truly qualify.
What happens if I fail the means test?
Failing the Chapter 7 means test generally points you toward Chapter 13 bankruptcy, where you repay part of your debt through a court-approved plan over three to five years. It does not mean you have no options, and for unsecured debt, non-court alternatives may still apply.
Do I have to file bankruptcy if I pass the means test?
No. Passing the means test only means Chapter 7 is available to you, not that you should file. Bankruptcy is a serious step with a lasting public record. For unsecured debt like credit cards and medical bills, many people resolve their situation without filing at all.
What is the main alternative to Chapter 7 bankruptcy?
For unsecured debt, the most common alternative is debt settlement, where a company negotiates settlements on your unsecured debts so you resolve them for a negotiated amount, with no court filing and no means test. A debt management plan is another route. Both work only on unsecured debt; secured debt may require the court.
How do I find out whether I can avoid filing bankruptcy?
The simplest first step is to submit the quick form with your approximate debt amount. It takes about a minute and there is no obligation. CuraDebt is a free matching service that connects you with licensed, independent providers so you can compare settlement and other non-court options against your situation before deciding. For the means test and any filing, consult a licensed attorney.
Related Resources
- Compare all your debt relief options
- How the CuraDebt debt settlement program works
- How a debt management program works
- How debt negotiation works
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