Use this calculator to estimate whether your income and expenses suggest you would qualify for Chapter 7 bankruptcy under the U.S. Bankruptcy Code's means test. This tool provides a simplified estimate and is not legal advice.
Number of people in your household.
Your total income before deductions, averaged over the last 6 full calendar months.
Find this specific value for your state and household size from official U.S. Trustee Program data.
Allowed Monthly Expenses (for above-median income filers):
These are generally based on IRS National and Local Standards, and other specific allowed deductions. Consult official IRS and U.S. Trustee Program guidelines for accurate figures.
Average monthly payments on secured debts over the next 60 months.
Average monthly payments on priority debts over the next 60 months.
Based on IRS National and Local Standards for your area and household size.
Up to 15% of your gross monthly income.
Understanding the Chapter 7 Means Test
The Chapter 7 Means Test is a crucial component of U.S. bankruptcy law, designed to determine whether an individual or couple primarily qualifies for Chapter 7 bankruptcy. Enacted as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), its primary purpose is to prevent higher-income debtors from filing for Chapter 7 (which typically results in the discharge of most unsecured debts without repayment) when they have the financial capacity to repay some of their debts through a Chapter 13 repayment plan.
How the Means Test Works
The means test is a two-part calculation that evaluates a debtor's income and expenses. It generally applies to individuals whose debts are primarily consumer debts (as opposed to business debts).
Part 1: The Median Income Test
The first step compares your "current monthly income" (CMI) to the median income for a household of your size in your state of residence. Your CMI is typically the average of your gross monthly income over the six full calendar months preceding your bankruptcy filing. This includes most sources of income, such as wages, salary, commissions, bonuses, tips, rental income, interest, dividends, and unemployment benefits.
If your annualized CMI is below the state median income: You generally "pass" the means test and are presumptively eligible to file for Chapter 7 bankruptcy. No further calculations are typically required under the means test.
If your annualized CMI is above the state median income: You must proceed to the second part of the means test, the "disposable income test," to determine if there's a "presumption of abuse."
Part 2: The Disposable Income Test
If your income is above the state median, the means test then calculates your "disposable income." This involves subtracting a specific set of allowed monthly expenses from your CMI. These allowed expenses are not necessarily your actual expenses but are often based on standardized figures set by the IRS (National and Local Standards) for housing, food, transportation, and other necessities, along with certain actual expenses like:
Monthly taxes (federal, state, local, Social Security, Medicare)
Mandatory payroll deductions
Health insurance premiums and out-of-pocket healthcare costs
Child care and education costs for dependent children
Payments on secured debts (e.g., mortgage, car loans)
Payments on priority debts (e.g., child support, alimony)
Certain charitable contributions
After subtracting these allowed expenses from your CMI, the remaining amount is your "monthly disposable income." This figure is then multiplied by 60 (representing five years) to determine your projected disposable income over a Chapter 13 plan period.
If your 60-month disposable income is below certain thresholds: You may still qualify for Chapter 7. The primary threshold is typically $13,650 (this figure is subject to change and adjusted periodically). If your 60-month disposable income is less than this amount, there is no presumption of abuse.
If your 60-month disposable income exceeds these thresholds: There is a "presumption of abuse," meaning the court presumes you have enough income to repay a significant portion of your unsecured debts. In such cases, you may be required to file Chapter 13 bankruptcy instead of Chapter 7, or you might need to demonstrate "special circumstances" to rebut the presumption of abuse.
Important Considerations
Exemptions: The means test does not apply to certain debtors, such as those whose debts are primarily non-consumer (e.g., business debts).
Accuracy is Key: The figures used in the means test, especially the state median incomes and IRS expense standards, are updated periodically. It's crucial to use the most current data available.
Legal Advice: This calculator provides a simplified estimate. Bankruptcy law is complex, and the means test has many nuances and exceptions. Consulting with an experienced bankruptcy attorney is essential to accurately assess your eligibility and understand all your options.
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function calculateMeansTest() {
// Get input values
var householdSize = parseFloat(document.getElementById('householdSize').value);
var grossMonthlyIncome = parseFloat(document.getElementById('grossMonthlyIncome').value);
var stateMedianIncome = parseFloat(document.getElementById('stateMedianIncome').value); // Annual
var monthlyTaxes = parseFloat(document.getElementById('monthlyTaxes').value);
var securedDebtPayments = parseFloat(document.getElementById('securedDebtPayments').value);
var priorityDebtPayments = parseFloat(document.getElementById('priorityDebtPayments').value);
var livingExpensesIRS = parseFloat(document.getElementById('livingExpensesIRS').value);
var healthInsurancePremiums = parseFloat(document.getElementById('healthInsurancePremiums').value);
var outOfPocketHealthcare = parseFloat(document.getElementById('outOfPocketHealthcare').value);
var childCareCosts = parseFloat(document.getElementById('childCareCosts').value);
var educationCosts = parseFloat(document.getElementById('educationCosts').value);
var charitableContributions = parseFloat(document.getElementById('charitableContributions').value);
var resultDiv = document.getElementById('meansTestResult');
resultDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(householdSize) || householdSize < 1 ||
isNaN(grossMonthlyIncome) || grossMonthlyIncome < 0 ||
isNaN(stateMedianIncome) || stateMedianIncome < 0 ||
isNaN(monthlyTaxes) || monthlyTaxes < 0 ||
isNaN(securedDebtPayments) || securedDebtPayments < 0 ||
isNaN(priorityDebtPayments) || priorityDebtPayments < 0 ||
isNaN(livingExpensesIRS) || livingExpensesIRS < 0 ||
isNaN(healthInsurancePremiums) || healthInsurancePremiums < 0 ||
isNaN(outOfPocketHealthcare) || outOfPocketHealthcare < 0 ||
isNaN(childCareCosts) || childCareCosts < 0 ||
isNaN(educationCosts) || educationCosts < 0 ||
isNaN(charitableContributions) || charitableContributions < 0) {
resultDiv.innerHTML = 'Please enter valid positive numbers for all fields.';
return;
}
// Step 1: Median Income Test
var annualizedGrossIncome = grossMonthlyIncome * 12;
var medianIncomeTestResult = '';
var presumptionOfAbuse = false;
if (annualizedGrossIncome < stateMedianIncome) {
medianIncomeTestResult = 'Your annualized gross income of $' + annualizedGrossIncome.toFixed(2) + ' is below the state median income of $' + stateMedianIncome.toFixed(2) + ' for your household size.' +
'You presumptively qualify for Chapter 7 bankruptcy.';
} else {
medianIncomeTestResult = 'Your annualized gross income of $' + annualizedGrossIncome.toFixed(2) + ' is above the state median income of $' + stateMedianIncome.toFixed(2) + ' for your household size.' +
'Proceeding to the Disposable Income Test…';
// Step 2: Disposable Income Test (for above-median filers)
// Cap charitable contributions at 15% of gross monthly income
var maxAllowedCharitable = grossMonthlyIncome * 0.15;
var actualCharitableContributions = Math.min(charitableContributions, maxAllowedCharitable);
var totalAllowedExpenses = monthlyTaxes + securedDebtPayments + priorityDebtPayments +
livingExpensesIRS + healthInsurancePremiums + outOfPocketHealthcare +
childCareCosts + educationCosts + actualCharitableContributions;
var monthlyDisposableIncome = grossMonthlyIncome – totalAllowedExpenses;
// Ensure disposable income is not negative for calculation purposes
if (monthlyDisposableIncome = $13,650
// The second threshold (25% of non-priority unsecured debt AND at least $8,175) is not calculated here
// as it requires total unsecured debt as an input, which is not included for simplicity.
// This calculator focuses on the primary $13,650 threshold.
if (sixtyMonthDisposableIncome >= threshold1) {
presumptionOfAbuse = true;
}
medianIncomeTestResult += 'Calculated Monthly Disposable Income: $' + monthlyDisposableIncome.toFixed(2) + " +
'60-Month Disposable Income: $' + sixtyMonthDisposableIncome.toFixed(2) + ";
if (presumptionOfAbuse) {
medianIncomeTestResult += 'Based on your disposable income, there is a presumption of abuse (60-month disposable income is $' + sixtyMonthDisposableIncome.toFixed(2) + ', which is above the $' + threshold1.toFixed(2) + ' threshold).' +
'This suggests you may not qualify for Chapter 7 and might need to consider Chapter 13 bankruptcy or demonstrate special circumstances.';
} else {
medianIncomeTestResult += 'Based on your disposable income, there is no presumption of abuse (60-month disposable income is $' + sixtyMonthDisposableIncome.toFixed(2) + ', which is below the $' + threshold1.toFixed(2) + ' threshold).' +
'You may still qualify for Chapter 7 bankruptcy.';
}
}
resultDiv.innerHTML = medianIncomeTestResult +
'Disclaimer: This calculator provides a simplified estimate based on common means test criteria and is not legal advice. Bankruptcy law is complex, and actual eligibility depends on many factors, including specific state laws, current IRS standards, and individual circumstances. Always consult with a qualified bankruptcy attorney for accurate guidance.';
}