Do I Qualify for Bankruptcy? Run the Full Eligibility Check.

The means test is a two-part income analysis required for Chapter 7 eligibility. Part 1 compares your Current Monthly Income (CMI — the average of the last 6 months of gross income) to your state median income for a household of your size. If your CMI is at or below the median, you automatically qualify for Chapter 7 without completing Part 2. If above the median, Part 2 calculates your disposable income after subtracting IRS National and Local Standard expense allowances, actual secured debt payments (mortgage, car), actual priority debt payments, and other allowed deductions. If the resulting monthly disposable income is below $167 (or below 25% of nonpriority unsecured debt divided by 60), you still qualify. Only if you fail both parts is there a presumption of abuse — which can still be rebutted in rare circumstances.

There is no fixed dollar amount income limit for Chapter 7. The limit is dynamic: your income must be at or below your state's median income for your household size, OR your disposable income after allowed deductions must fall below the abuse threshold. State medians vary significantly — a 2-person household median ranges from about $4,800/month in Mississippi to over $9,000/month in Maryland. Larger households have higher medians. You can pass the means test with a relatively high gross income if your expenses (mortgage, car, health insurance, taxes) are substantial. The calculator applies your state median and computes both parts of the test.

As of 2024, Chapter 13 has debt limits of approximately $465,275 for nonpriority unsecured debt (credit cards, medical bills, personal loans) and $1,395,875 for secured debt (mortgages, car loans). These limits are adjusted every 3 years by the Judicial Conference. If your debt exceeds these limits, Chapter 13 is unavailable and you would need to consider Chapter 11, which has different requirements. Most individuals with consumer debt fall well within these limits. Business owners with both personal and business debt need to be more careful as the combined totals can approach the limits.

The waiting period depends on what chapters were filed and received: Chapter 7 after Chapter 7 — 8 years between filing dates; Chapter 13 after Chapter 7 — 4 years; Chapter 7 after Chapter 13 — 6 years (with exceptions if you paid 100% of unsecured creditors in the prior Chapter 13, or 70% plus good faith); Chapter 13 after Chapter 13 — 2 years. These periods are measured from filing date to filing date, not from discharge date. If you file within the waiting period, you can still file but you will not receive a discharge — the automatic stay still applies temporarily, but the debt relief mechanism is unavailable.

Most Chapter 7 filers must complete Form 122A-1 (the means test form). Exceptions include: active-duty military reservists and National Guard members (during active duty and for 540 days after), and disabled veterans whose debt was primarily incurred while on active duty. If your CMI is below the state median, you still file Form 122A-1 but only Part 1 — you do not need to complete the full deduction analysis. Chapter 13 filers complete a different form (122C-1 and 122C-2) that calculates the minimum plan payment using a similar disposable income analysis, but the result determines plan payment rather than eligibility.