Bankruptcy Means Test
Check if you qualify for Chapter 7 bankruptcy based on your income and state median.
Income Information
Monthly Expenses
You Likely Qualify for Chapter 7
Your income is below the state median. You pass the means test automatically.
$54,000
$88,500
$-34,500
Chapter 7 vs Chapter 13
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Eligibility | Likely eligible | Available to most filers |
| Duration | 3–6 months | 3–5 years |
| Assets | Must surrender non-exempt assets | Keep all assets (including home) |
| Debt Discharge | Most unsecured debts discharged | Remaining unsecured debt discharged after plan |
State Exemptions (CA)
Important Notes
- • You likely qualify for Chapter 7. Most unsecured debts (credit cards, medical bills) would be discharged in 3-6 months.
- • The means test uses your average income over the last 6 months, not your current income.
- • Certain debts cannot be discharged: student loans, recent taxes, child support, and alimony.
What Is the Bankruptcy Means Test?
The means test compares your household income to the median income in your state. If you're below the median, you automatically qualify for Chapter 7. If above, you must show that your disposable income (after allowed expenses) is low enough to pass. This test was created by the 2005 Bankruptcy Abuse Prevention Act to prevent high-income filers from using Chapter 7 to erase debts.
State Median Income Examples (2026, Family of 4)
| State | Median Income | State | Median Income |
|---|---|---|---|
| California | $98,000 | Texas | $78,000 |
| New York | $92,000 | Florida | $76,000 |
| New Jersey | $108,000 | Ohio | $74,000 |
| Maryland | $106,000 | Mississippi | $60,000 |
| Massachusetts | $110,000 | West Virginia | $62,000 |
Chapter 7 vs Chapter 13 — Key Differences
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Time to complete | 3–6 months | 3–5 years |
| Income requirement | Below median or pass means test | Regular income required |
| Assets | Non-exempt assets liquidated | Keep all assets |
| Mortgage arrears | Cannot catch up on missed payments | Can cure mortgage arrears in plan |
| Credit impact | Stays on credit report 10 years | Stays on credit report 7 years |
| Filing fee | $338 | $313 |
| Attorney cost | $1,000–$3,500 | $2,500–$6,000 |
Debts That Cannot Be Discharged
| Non-Dischargeable Debt | Exceptions |
|---|---|
| Federal student loans | Undue hardship (very difficult to prove) |
| Recent income taxes (last 3 years) | Older tax debts may qualify |
| Child support and alimony | None — always non-dischargeable |
| Fraud-based debts | Must be challenged in court |
| DUI judgments | None |
Frequently Asked Questions
How is the 6-month income average calculated?
The means test uses your total gross income from all sources for the 6 calendar months before your filing month. If you lost your job recently and had high income earlier, your average may still be above the median — in that case, waiting a few months to file may improve your result.
Can I file bankruptcy on my own without a lawyer?
You legally can (called "pro se" filing), but it's risky. Bankruptcy involves complex forms, deadlines, and exemption elections. A mistake can result in losing assets you could have protected or having your case dismissed. Chapter 7 attorneys typically charge $1,000–$3,500, which is often payable in installments.
Related tools: Debt Payoff Calculator and Budget Planner.