New York Bankruptcy Means Test Calculator: Full Guide
Curious how the means test generally works? Take the 10-second check below.
What is the New York bankruptcy means test?
The means test is the federal screening tool used to gauge whether a household may be eligible to file Chapter 7 bankruptcy, the type that can wipe out qualifying unsecured debts. Administered under the U.S. Trustee Program, it generally works in two parts. First, it compares household income to New York's median income for the household size. Income below the median generally points toward eligibility. Above it, a second calculation looks at allowable expenses to gauge whether disposable income is low enough to still qualify.
In other words, being over the median doesn't automatically rule someone out. The test is meant to reflect a real financial picture, not just gross income. Whether a given person actually qualifies is a legal determination that a licensed bankruptcy attorney should confirm. If Chapter 7 turns out not to fit, there are other routes, including Chapter 13 and a debt settlement program, which we'll cover below.
What income counts toward the means test
The test uses your current monthly income (CMI), calculated by averaging what you received from nearly all sources over the six full calendar months before you file, then annualizing it. Because it's a lookback average, you can't cherry-pick your lowest-earning months.
Income that generally counts includes wages, salary, tips, bonuses, and overtime; a non-filing spouse's income (unless legally separated); self-employment or business income; rental and investment income; pension and retirement distributions; unemployment compensation; and regular contributions others make toward your household expenses.
Some income is typically excluded, most notably benefits paid under the Social Security Act, such as Social Security retirement and SSDI, plus certain other categories. Exactly what counts can hinge on your specifics, so verify the current treatment for your situation.
New York median income and 2025 figures
New York's median income limits are set by household size and updated roughly every six months from U.S. Census data. Recent figures put the one-person limit in the high $60,000s, rising for each additional household member, with a set dollar amount added for each person beyond four. Because these thresholds change on a regular schedule, any specific number you see can be out of date within months.
Rather than relying on a figure from an article, check the current New York median income for your household size on the official U.S. Trustee Program page for the period in which you'd file. The prompt above uses your inputs to give a general, educational sense of the picture, but it is not a legal determination; the official current tables and a licensed bankruptcy attorney are the authoritative sources. If income sits above the median, that isn't the end of the analysis; the expense review in stage two still matters.
What if you're above the median (or "fail")?
Being above the median generally moves the analysis to a second stage, where allowable expenses are subtracted from income to calculate disposable income. Allowable deductions typically include actual costs like taxes, mandatory payroll deductions, health insurance, court-ordered support, and secured debt payments, plus IRS standardized allowances for things like food, housing, utilities, transportation, and healthcare. New York often receives higher allowances than most states, reflecting its cost of living. If disposable income comes out low enough, a filer may still qualify for Chapter 7, though only the official calculation and a licensed bankruptcy attorney can confirm that for a specific case.
If it turns out Chapter 7 isn't available, that's not a dead end. Many people in that position turn to Chapter 13 or to non-bankruptcy relief. Our overview of debt relief options compares these paths side by side so you can see how they differ before choosing.
Alternatives if Chapter 7 isn't the answer
Failing the means test simply means your income is too high for Chapter 7 right now. Several alternatives may still provide meaningful relief:
- Chapter 13 bankruptcy. The "wage earner's plan" reorganizes debts into a three-to-five-year repayment plan. There are no income limits to qualify (only debt limits), and it can let you keep assets that exceed exemption limits.
- Debt settlement. Instead of court, specialists negotiate settlements on your unsecured debts, such as credit cards and medical bills, so you resolve accounts without filing bankruptcy. It can suit people with significant unsecured debt whose income exceeds Chapter 7 thresholds.
- Debt management plans. Credit counseling agencies negotiate lower interest rates while you repay the full principal, usually over three to five years, which works best for steady incomes and mostly credit card debt.
Each path has trade-offs around credit impact, timing, taxes, and which debts it covers. If you're weighing bankruptcy against settlement, our explainer on what debt settlement is and whether it's worth it is a useful next read before you decide.
Frequently Asked Questions
What is the New York bankruptcy means test?
It's the federal screening tool used to gauge eligibility to file Chapter 7 bankruptcy in New York. It first compares household income to the state median for the household size. Below-median income generally points toward eligibility. Above it, an expense analysis looks at whether disposable income is still low enough to qualify. This is general information, not legal advice; whether you actually qualify is a legal determination a licensed bankruptcy attorney should confirm.
What income counts toward the means test?
The test uses your current monthly income, averaged over the six full months before filing. It generally includes wages, bonuses, overtime, self-employment and rental income, a non-filing spouse's income, unemployment, and regular household contributions from others. Certain benefits, most notably payments under the Social Security Act, are typically excluded.
What is New York's median income for the means test?
New York's median income limits are set by household size and updated about every six months using Census data, so any specific figure can quickly go stale. Recent limits start in the high $60,000s for one person and rise with each additional member. Always check the current figure for your household size on the U.S. Trustee page.
Does my spouse's income count if we're both not filing?
Generally, yes. A non-filing spouse's income is usually included in the means test calculation unless you are legally separated, because the test looks at total household income. There can be a marital adjustment for a spouse's expenses that don't benefit the household, so the specifics vary and are worth checking.
What happens if I'm above the New York median income?
Being above the median doesn't automatically rule you out. The analysis moves to a second stage that subtracts allowable expenses, actual costs plus IRS standardized allowances for housing, food, transportation, and more, from income. If the resulting disposable income is low enough, a filer may still qualify for Chapter 7. New York often has higher allowances than most states. Only the official calculation and a licensed bankruptcy attorney can confirm eligibility for your case.
What if I fail the means test entirely?
Failing simply means your income is too high for Chapter 7 right now. Common alternatives include Chapter 13, which reorganizes debt into a three-to-five-year repayment plan with no income cap, and debt settlement, where specialists negotiate settlements on your unsecured debts. Which fits depends on your income, assets, and the types of debt you carry.
Is debt settlement an alternative to bankruptcy in New York?
It can be. Rather than filing in court, a debt settlement program negotiates settlements on unsecured debts like credit cards and medical bills. It may suit people with significant unsecured debt whose income exceeds Chapter 7 thresholds. Like any option, it affects your credit and has trade-offs, so compare it against bankruptcy before deciding.
How is household size counted for the means test?
Your household typically includes you, your spouse unless legally separated, and dependents you financially support. Household size matters because the median you're measured against rises with each member. In multi-generational homes, counting adult children or elderly parents you support can get nuanced and may depend on how the court interprets your situation.
Do I really need an online means test calculator?
An online calculator or prompt is a helpful, educational starting point to orient yourself, but it is not a legal determination and isn't a substitute for the official current tables or a licensed bankruptcy attorney. The figures update regularly, and the expense analysis is detailed. Use a tool to get oriented, then confirm current numbers and consult a bankruptcy attorney about whether you qualify.
If Chapter 7 isn't right for me, what's the next step?
Look at the full picture: your income, assets, exemptions, and which debts you carry. Chapter 13, debt settlement, a debt management plan, or consolidation may each fit different situations. A free, no-obligation review can line these paths up side by side so you can see which one makes sense for your circumstances.
Related Resources
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- How the CuraDebt debt settlement program works
- Debt settlement: what it is and if it's worth it
- Debt negotiation explained
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