Federal Bankruptcy Means Test Calculator
Estimate whether your income appears below your state median and, if not, whether your projected disposable income may trigger a presumption of abuse under the federal Chapter 7 means test. This tool is educational and should be cross-checked against the current Official Forms and U.S. Trustee median income data before filing.
Your estimate will appear here
Choose your state, confirm the annual median benchmark, enter your current monthly income, allowed expenses, and unsecured debt, then click calculate.
How a federal bankruptcy means test calculator works
The federal bankruptcy means test is one of the most important screening tools in consumer bankruptcy law. It is designed to identify whether a debtor who wants to file Chapter 7 appears to have enough income, after permitted deductions, to repay a meaningful portion of unsecured debt through a Chapter 13 plan. A good federal bankruptcy means test calculator gives you an early estimate of where you stand before you spend time assembling a full petition package.
At a high level, the analysis works in two major stages. First, your household income is annualized and compared against your state median income for a household of the same size. If your annualized income is below that benchmark, you generally clear the initial screen. If your income is above the benchmark, the analysis does not automatically end. Instead, the second stage asks whether, after deducting the expenses the law allows, your remaining monthly disposable income is high enough to create a presumption of abuse.
This calculator focuses on those core concepts. It asks for your current monthly income, allowed monthly expenses, household size, and nonpriority unsecured debt. It also autofills an annual median benchmark based on sample state data so you can get started quickly. Because the official figures are updated regularly, and because expense deductions can be highly technical, you should always verify the numbers you use with the current U.S. Trustee Program data and the official forms.
Why the means test matters
For many filers, Chapter 7 is attractive because it can eliminate dischargeable unsecured debt relatively quickly. But Congress added the means test to limit Chapter 7 access for people with enough disposable income to repay creditors. The practical result is that a means test calculator is not just a budgeting tool. It is a preliminary eligibility screen.
- If your income is below the state median for your household size, you may be in a stronger position to qualify for Chapter 7.
- If your income is above the median, allowable deductions become extremely important.
- If your sixty-month projected disposable income crosses statutory thresholds, the court or U.S. Trustee may argue that a Chapter 7 filing is abusive.
- Even where the calculator indicates risk, facts such as recent income changes, family obligations, or special circumstances may still matter.
The two-part means test in plain English
- Median income comparison: Multiply current monthly income by 12 and compare that annualized number to the applicable state median income for your household size.
- Disposable income review: If you are above median, subtract allowed monthly expenses from current monthly income. Then multiply that monthly disposable income by 60 to estimate what could be available to creditors over five years.
- Threshold review: The law uses statutory threshold amounts, along with a comparison to 25% of nonpriority unsecured debt, to determine whether a presumption of abuse may arise.
That structure is why you should not panic if your income is above median. Being over median does not automatically disqualify you from Chapter 7. It only means that the second half of the analysis becomes more important.
Key data points used in this calculator
| Data point | Why it matters | How this calculator uses it |
|---|---|---|
| Current monthly income | Forms the basis for annualized income and disposable income review. | Multiplied by 12 for the first screen, then compared to allowed expenses. |
| State median income benchmark | Used to determine whether you are below or above median. | Compared directly against annualized income. |
| Allowed monthly expenses | Reduces income for purposes of the second-stage analysis. | Subtracted from current monthly income to estimate disposable income. |
| Nonpriority unsecured debt | Important because the middle threshold compares disposable income to 25% of this debt. | Used to calculate whether the statutory middle-band comparison may create risk. |
| Statutory threshold amounts | Federal law uses threshold figures to assess whether a presumption of abuse arises. | Uses the widely cited lower threshold of $10,950 and upper threshold of $18,250 over 60 months for educational screening. |
Sample state median benchmark examples
The exact state median income numbers change over time, so your attorney or petition preparer should always confirm the latest official schedule. Still, it helps to see how much these benchmarks can vary by geography and household size. The table below shows example annual benchmark figures commonly used for educational planning and comparison. These numbers are close to the kinds of figures you will see in official U.S. Trustee schedules, but you should verify the current version before filing.
| State | 1-person household | 2-person household | 3-person household | 4-person household |
|---|---|---|---|---|
| California | $75,235 | $98,421 | $110,315 | $128,987 |
| Texas | $60,412 | $79,128 | $88,237 | $102,114 |
| Florida | $58,904 | $72,118 | $81,107 | $96,203 |
| New York | $67,391 | $88,454 | $104,771 | $127,033 |
| Illinois | $65,689 | $83,205 | $99,110 | $117,400 |
What counts as current monthly income
One of the most misunderstood parts of the means test is current monthly income, often abbreviated as CMI. It does not necessarily mean what you are earning today. Instead, it generally refers to the average monthly income received during the six full calendar months before filing. That can include wages, bonuses, commissions, rental income, business income, pension distributions, and regular household contributions, subject to legal definitions and exclusions.
Because CMI is backward-looking, timing can matter. Someone who recently lost overtime, changed jobs, or had a seasonal business slowdown may still show a high six-month average even if today’s cash flow is much lower. That is one reason why a calculator is only the beginning. A full legal review may uncover special circumstances or filing-timing strategies that affect the analysis.
What expenses are allowed
The second half of the means test is not a simple personal budget. You do not always deduct every dollar you actually spend. Instead, many categories are governed by national and local standards, secured debt formulas, health care deductions, taxes, insurance, childcare, domestic support obligations, and other specified items. In some cases, your real spending may exceed standard allowances. In other cases, the form may permit a deduction even if your actual spending is lower.
That is why this calculator asks for a single allowed-expense number instead of trying to recreate every line item from the official form. If you know your means test deductions from a worksheet or from counsel, you can enter them directly. If not, your result should be treated as a rough estimate rather than a filing-ready determination.
How disposable income is evaluated
When a filer is above median, disposable income becomes the core issue. The basic calculation is straightforward:
Current monthly income minus allowed monthly expenses equals monthly disposable income.
That number is then multiplied by 60 because the law looks at the equivalent of a five-year repayment period. The result is compared with statutory thresholds. Educational calculators often use a lower threshold of $10,950 and an upper threshold of $18,250 over 60 months. If the sixty-month amount is below the lower threshold, the presumption usually does not arise. If it is above the upper threshold and large enough relative to unsecured debt, the risk increases materially. The middle range requires comparing the sixty-month figure with 25% of nonpriority unsecured debt.
Federal filing statistics that show why this topic matters
Bankruptcy remains a major part of the consumer finance landscape in the United States. According to federal court reporting, hundreds of thousands of bankruptcy cases are filed each year, and Chapter 7 consistently represents a large share of consumer filings. That means the means test continues to affect a significant number of households deciding whether Chapter 7 is realistic or whether Chapter 13 may be more likely.
| Federal bankruptcy metric | Reported figure | Why it is useful |
|---|---|---|
| Total U.S. bankruptcy filings, calendar year 2023 | 434,064 | Shows bankruptcy is common enough that screening tools like the means test affect many households. |
| Approximate increase from 2022 to 2023 | About 16.8% | Highlights renewed filing growth as household financial pressure increased. |
| Consumer cases as a share of all filings | Vast majority of total filings | Confirms why consumer-oriented eligibility analysis remains important. |
Common mistakes people make with a federal bankruptcy means test calculator
- Using take-home pay instead of gross income. Means test calculations usually start from gross receipts, not net paycheck deposits.
- Ignoring the six-month lookback rule. The means test often looks backward, not simply at the current month.
- Using actual household spending instead of allowed deductions. The law can be more rigid than a normal budget.
- Forgetting unsecured debt in the middle-band analysis. That number may affect whether a presumption arises.
- Relying on stale state median data. U.S. Trustee updates matter, and even modest benchmark changes can alter the outcome.
How to use this calculator more effectively
- Collect six months of pay stubs, business receipts, benefit statements, and household contribution records.
- Confirm your household size under the rules applicable in your jurisdiction.
- Look up the most current official median income figure and replace the autofilled benchmark if needed.
- Estimate your allowed deductions using the official form or with professional help.
- Compare your result with your broader legal options, including Chapter 13 and non-bankruptcy strategies.
Important official sources
If you want to validate your numbers, start with the official federal resources. The U.S. Trustee Program publishes current median income information and links to means test resources. The U.S. Courts website provides forms and filing information. Cornell Law School’s Legal Information Institute is also useful for reading the underlying statute. Helpful references include justice.gov/ust/means-testing, uscourts.gov/forms/bankruptcy-forms, and law.cornell.edu/uscode/text/11/707.
Bottom line
A federal bankruptcy means test calculator can save time and reduce uncertainty, but it is only as reliable as the data entered into it. The most common turning points are the state median benchmark, the definition of current monthly income, and whether your expense deductions are legally allowable rather than merely realistic. If your estimate shows you are below median, that can be encouraging. If it shows you are above median, it does not mean Chapter 7 is impossible. It means the details now matter much more.
For that reason, treat this tool as a smart first-pass analysis. Use it to organize your numbers, understand the structure of the test, and identify whether you need a deeper review. The final answer should always come from the current official forms, up-to-date median income data, and case-specific legal advice.
Legal disclaimer: This page is for educational use only and is not legal advice. Means test rules, median income benchmarks, and threshold figures are updated periodically. Filing outcomes can depend on jurisdiction-specific interpretations, special circumstances, marital adjustment issues, business income treatment, and other facts not captured in a basic calculator.