Bankruptcy Means Test Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 27, 2026Bankruptcy Means Test Calculator
The bankruptcy means test is the first step in determining Chapter 7 eligibility under U.S. bankruptcy law - this calculator performs the initial income comparison threshold check.
Compare Annualized Household Income to Annualized State Median Income
Example
$4,000 monthly household income, $5,000 state median monthly income for the same household size:
Annualized Income = $48,000 vs. Annualized Median = $60,000 → Below median - likely passes automatically
What Happens at Each Outcome
- At or below state median: the filer generally passes the means test automatically, without needing further detailed calculation.
- Above state median: a more detailed disposable income calculation is required - subtracting IRS-allowed expense categories from income to determine whether enough disposable income exists to fund a Chapter 13 repayment plan instead, which would disqualify Chapter 7 eligibility.
This Is Only the First Step
This calculator checks only the initial threshold comparison - the full means test involves many additional detailed calculations covering specific allowed expense categories, secured debt payments, and other deductions defined by bankruptcy law. Always consult a qualified bankruptcy attorney for an actual eligibility determination specific to your full financial situation.