Chapter 7 Bankruptcy Eligibility Estimator

How this works

Chapter 7 bankruptcy under 11 U.S.C. § 707(b) requires debtors to pass the means test. The test has two parts:

1. Median income check (this tool): If your annual household income is below your state's median for your household size, you pass automatically and are presumed eligible.
2. Disposable income check (next step): If you exceed the median, you must complete IRS Form 122A-2 to calculate disposable income after allowed expenses (housing, transportation, food, healthcare, etc.).

Median figures used here come from U.S. Census American Community Survey 2023 (Table B19013), the same baseline data the U.S. Trustee Program uses to set means test thresholds. Actual published figures are updated semiannually by the U.S. Trustee Program.

If you fail the median check

You may still qualify for Chapter 7 after the disposable-income calculation. Many filers above the median ultimately pass the full means test once allowed expenses are deducted. A bankruptcy attorney can run the full calculation in a free consultation. Alternatively, Chapter 13 (the wage-earner reorganization plan) is available regardless of income, see our Chapter 7 vs Chapter 13 guide.

Source & methodology

Median household income figures from U.S. Census Bureau ACS 1-Year Estimates 2023, Table B19013. Means test framework from U.S. Trustee Program Means Testing. Always cross-check current published thresholds before filing, they update semiannually.