Do You Qualify for Chapter 7 Bankruptcy? Run the Means Test Now.

The bankruptcy means test was introduced by Congress in 2005 to determine who qualifies for Chapter 7 bankruptcy — the form that completely discharges most unsecured debts — versus Chapter 13, which requires a multi-year repayment plan. The test has two parts: first, it compares your current monthly income to your state's median income for your household size. If you're below the median, you automatically qualify for Chapter 7. If you're above it, you must complete the full means test to determine whether your "disposable income" after allowed expenses is low enough to still qualify. The full means test is notoriously complex. It uses IRS-defined "allowable expense" standards — not your actual expenses — for many categories like food, clothing, and transportation, while using your actual expenses for others like mortgage and car payments. The result is that someone with a high nominal income may still qualify for Chapter 7, while someone with moderate income may not, depending on their expense profile and state. This simulator walks you through both parts of the means test using the current IRS standards and state median income data. It calculates your current monthly income (CMI), compares it to your state median, and if necessary runs the full disposable income calculation. The result tells you whether you likely pass, fail, or fall in a gray zone requiring professional review — and shows you exactly which expense categories are driving the outcome. This is a simulation for educational purposes. Actual bankruptcy qualification requires review by a licensed bankruptcy attorney.

Part 1: CMI vs State Median Current Monthly Income (CMI) = Total income averaged over prior 6 months If CMI ≤ State Median → Auto-qualify for Chapter 7 Part 2: Disposable Income Test (if CMI > State Median) Allowed Monthly Expenses = IRS Standards + Actual secured debt payments + Priority debt payments Monthly Disposable Income (MDI) = CMI – Allowed Monthly Expenses 60-Month Disposable = MDI × 60 Qualification thresholds: 60-Month Disposable < $9,075 → Qualifies for Chapter 7 60-Month Disposable > $15,150 → Does NOT qualify Between $9,075–$15,150 → Gray zone (additional 5% test applies)