What Is the Means Test?
The means test determines whether you qualify for Chapter 7 bankruptcy or must file Chapter 13 instead. It was created by BAPCPA in 2005 to prevent higher-income filers from using Chapter 7 to avoid paying debts they could afford to repay.
The test is mandatory for all individual Chapter 7 filers. If you don't pass, you can still file Chapter 13 -- you just can't file Chapter 7.
Step 1: Compare Income to Median
Calculate your "current monthly income" (CMI) by averaging your gross household income over the past 6 full calendar months. Multiply by 12 for an annual figure. Compare this to the median income for your state and household size.
If your annualized CMI is at or below the median, you pass the means test automatically. Stop here -- you qualify for Chapter 7. If above, proceed to Step 2.
Check your state's median income at bankruptcymeanstest.org.
Step 2: Calculate Disposable Income
If above median, subtract allowed expenses from your CMI. Allowed expenses include IRS Local and National Standards (housing, food, clothing, transportation), actual secured debt payments, priority debt payments, and certain other deductions.
If your monthly disposable income after deductions is less than a threshold amount (roughly $8,175/month multiplied by 60), you pass. The exact calculation is on Official Form 122A-2.
Common Means Test Mistakes
Including Social Security income (it's excluded). Using current month's income instead of 6-month average. Forgetting to include spouse's income (even if not filing jointly). Using actual expenses instead of IRS Standards. Missing deductions for health insurance, disability insurance, or mandatory payroll deductions.
Tip: The means test is based on the 6 months BEFORE filing. If you recently lost a job or had a pay cut, waiting a few months to file may improve your means test result as the high-income months drop off.
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Last updated: April 2026. Not legal advice.
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