Bankruptcy Means Test Calculator (2026) — Free

How the Means Test Works

The means test was created by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Congress designed it to ensure Chapter 7 bankruptcy is available to people who genuinely cannot repay their debts. The test is codified at 11 U.S.C. § 707(b)(2).

The test has two parts. Part 1 compares your household income to the median income for your state and household size. If you're below the median, you pass automatically and qualify for Chapter 7. About 90% of people who file Chapter 7 pass based on income alone.

Part 2 applies only if your income exceeds the median. It subtracts standardized and actual expenses from your income to calculate your monthly disposable income. If the result is below the threshold, you still qualify. Many people above the median pass Part 2 after deducting housing costs, transportation, healthcare, childcare, and taxes.

This calculator checks Part 1 only. For a complete assessment including expense deductions, check your full eligibility with Frankie or read the detailed means test explainer.

What Counts as Income

Wages, salary, tips, bonuses, and overtime
Self-employment and business income
Rental and investment income
Pension and retirement distributions
Regular contributions from anyone in the household
Unemployment compensation

What Does NOT Count

Social Security income (SSI, SSDI, retirement benefits) — excluded under 11 U.S.C. § 101(10A)
Payments to victims of war crimes or terrorism

If Social Security makes up a significant portion of your income, your actual means test income may be substantially lower than your total income. This exclusion alone qualifies many retirees and people with disabilities for Chapter 7.

Frequently Asked Questions

What is the bankruptcy means test?

The means test is a calculation required by federal law (11 U.S.C. § 707(b)(2)) that determines whether you qualify for Chapter 7 bankruptcy. It compares your average monthly income over the past six months (annualized) to the median income for your state and household size. If you're below the median, you qualify. If you're above, you may still qualify through expense deductions in Part 2 of the test.

What income counts for the means test?

The means test counts wages, salary, tips, bonuses, overtime, self-employment income, rental income, pension income, and regular contributions from household members. Critically, Social Security income — including SSDI and SSI — is excluded from the calculation under 11 U.S.C. § 101(10A). This exclusion makes a significant difference for retirees and people receiving disability benefits.

What if my income is above the median?

Being above the median does not disqualify you from Chapter 7. You move to Part 2 of the means test, which subtracts allowable expenses from your income: housing costs, transportation, healthcare, childcare, taxes, and mandatory payroll deductions. Many people above the median still qualify for Chapter 7 after these deductions. A family earning $120,000 in Texas (above the $114,938 median for four people) could still qualify after deducting mortgage, car payments, insurance, and childcare.

How often do means test thresholds change?

The U.S. Trustee Program updates median income thresholds approximately every six months, typically in April and November. This calculator uses thresholds effective November 1, 2025. The next update is expected April 2026. Always verify current thresholds at justice.gov/ust before making filing decisions.