The Means Test: Chapter 7's Income Gateway
The means test is the primary gatekeeper for Chapter 7 eligibility. It compares your household income over the past 6 months (annualized) to the median income for a household of your size in your state. If you're below the median, you qualify for Chapter 7 automatically.
If you're above the median, a second calculation subtracts allowed expenses from your income. If your remaining "disposable income" is low enough, you can still qualify. The means test is complex -- use the means test calculator to check your numbers.
Chapter 13: No Income Ceiling, But Income Required
Chapter 13 has no income ceiling -- anyone with regular income can file. However, Chapter 13 requires enough income to fund a repayment plan that pays priority debts in full, cures any mortgage arrears, and pays unsecured creditors at least as much as they would receive in Chapter 7.
If your income is too low to fund a viable plan, the court will not confirm it. And if your income drops during the 3-5 year plan period, you may be unable to make payments, leading to dismissal.
What Counts as Income?
The means test includes almost all income: wages, salary, overtime, commissions, bonuses, self-employment income, rental income, pension/retirement income, unemployment compensation, workers' comp, annuity payments, child support received, and regular contributions from others (such as a partner paying household bills).
Social Security income is specifically excluded from the means test. This is important for retired filers -- Social Security alone cannot disqualify you from Chapter 7, regardless of the amount.
Income Changes After Filing
Chapter 7: Once filed, income changes generally don't affect your case. The means test is based on the 6 months before filing. Even if you get a raise the day after filing, it doesn't change your eligibility.
Chapter 13: Income changes can significantly affect your plan. A job loss may make payments impossible. A raise may require increasing payments to creditors. The trustee monitors your income and can request plan modifications.
State Median Income Comparison (2026)
Median income varies significantly by state. For a single filer, the annual median ranges from approximately $40,000 (Mississippi, West Virginia) to $75,000+ (Connecticut, New Jersey, Maryland). A family of four ranges from about $65,000 to $120,000+. Your specific state's figures determine your means test threshold.
Tip: Census Bureau median income figures are updated twice a year. Always use the most current figures when calculating your means test. Courts use the figures in effect on your filing date.
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Last updated: April 2026. Not legal advice.
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