The Chapter 7 means test, explained: what it measures and who it applies to

The means test is a calculation in the Bankruptcy Code. It decides whether a Chapter 7 filing by an individual whose debts are mostly consumer debts is presumed to be an abuse of Chapter 7.^[1]^[2] If your and your spouse’s combined current monthly income, multiplied by 12, is at or below your state’s median for your household size, the statute bars a motion to dismiss based on that presumption.^[2] Above the median, a longer calculation applies. This page explains the steps as the statute and the U.S. Trustee Program describe them. It does not tell you whether you qualify.

The short version

Who it applies to: an individual debtor in Chapter 7 whose debts are primarily consumer debts.^[2]
Step 1, the median test: compare your and your spouse’s combined “current monthly income” as of the date of the order for relief, multiplied by 12, with the median family income for your state and household size.^[2]
Step 2, if you are above the median: subtract allowed expenses, secured debt payments and priority debt payments from your monthly income, multiply by 60, and compare the result with dollar thresholds.^[2]
If abuse is presumed: the court may dismiss the case or, with your consent, convert it to Chapter 11 or 13. The presumption can be rebutted only by showing “special circumstances.”^[2]
Instead of Chapter 7: the U.S. Trustee Program says a consumer debtor can reorganize debts under Chapter 13 through a court-approved repayment plan, usually lasting 3 or 5 years.^[3]

Who the means test applies to

Section 707(b)(1) lets the court, after notice and a hearing, dismiss a Chapter 7 case filed by an individual whose debts are primarily consumer debts, or convert it to Chapter 11 or 13 with the debtor’s consent, if it finds that granting relief would be an abuse of the chapter.^[2] The U.S. Courts say the means test applies to individual debtors whose debts are primarily consumer rather than business debts.^[1]

The statute carves out some people. The means-test provisions do not apply to a disabled veteran whose debt was incurred primarily during active duty or a homeland defense activity. They also do not apply to a member of a reserve component or the National Guard who, after September 11, 2001, was called to active duty or performed a homeland defense activity, while on that duty for at least 90 days and for 540 days after it ends.^[2]

Step 1: current monthly income and the state median

“Current monthly income” is a defined term. It is the average monthly income from all sources you receive, whether or not taxable, over the 6-month period ending on the last day of the calendar month before you file. It includes amounts someone else regularly pays for the household expenses of you or your dependents. It excludes benefits received under the Social Security Act and certain other payments listed in the definition.^[4] In a joint case it includes both spouses.^[4]

Under section 707(b)(7), no judge, U.S. trustee, trustee or other party in interest may file a motion under the means-test paragraph if the current monthly income of the debtor and the debtor’s spouse combined, as of the date of the order for relief, multiplied by 12, is equal to or less than the figure below. In a case that is not a joint case, the spouse’s income is not counted in some situations, such as when the spouses are separated under applicable nonbankruptcy law.^[2]

for a household of 1, the median family income of your state for one earner;^[2]
for a household of 2, 3 or 4, the highest median family income of your state for a family of the same number or fewer;^[2]
for a household of more than 4, the highest median for a family of 4 or fewer, plus a set amount per month for each person above 4. The statute states $525, and the dollar amounts are adjusted every three years; the adjustment effective 1 April 2025 changed that figure to $925.^[2]^[5]

The U.S. Trustee Program says it posts the Census Bureau and IRS data needed to complete the official forms on its Means Testing page.^[3]

Step 2: the presumption calculation

If your income is above the median, the court presumes abuse when your current monthly income, reduced by the amounts below and multiplied by 60, is not less than the lesser of two figures.^[2]

Piece of the calculation	What the statute says
Start with	Current monthly income.^[2]
Subtract: monthly expenses	The IRS National Standards and Local Standards amounts for your area, plus your actual expenses for the IRS “Other Necessary Expenses” categories, for you, your dependents and a non-dependent spouse in a joint case. Expenses may not include payments for debts. The statute adds limited extra allowances, for example for caring for an elderly, chronically ill or disabled family member and for documented home energy costs above the standard.^[2]
Subtract: secured debt payments	The amounts contractually due to secured creditors in each of the 60 months after filing, plus any extra payments needed in a Chapter 13 plan to keep your primary residence, motor vehicle or other property necessary for support, all divided by 60.^[2]
Subtract: priority claims	The total of debts entitled to priority, including priority child support and alimony claims, divided by 60.^[2]
Multiply by 60, then compare	Abuse is presumed if the result is not less than the lesser of (1) 25 percent of your nonpriority unsecured claims or $10,275, whichever is greater, or (2) $17,150. The statute’s original figures were $6,000 and $10,000; the amounts shown are the ones adjusted effective 1 April 2025.^[2]^[1]

The statute says the Bankruptcy Code dollar amounts are adjusted at each three-year interval ending on April 1 to reflect changes in the Consumer Price Index, and that an adjustment does not apply to cases commenced before the date of the adjustment.^[5] The figures above apply to cases filed on or after 1 April 2025, the most recent adjustment recorded on the statute page. A case filed earlier uses the earlier amounts.^[2]

Rebutting the presumption

The statute says the presumption may be rebutted only by showing “special circumstances,” such as a serious medical condition or a call or order to active duty in the Armed Forces, that justify additional expenses or adjustments to income for which there is no reasonable alternative. You must itemize each additional expense or adjustment, give documentation and a detailed explanation, and attest to the accuracy under oath. The presumption is rebutted only if the adjusted figures bring the result below the thresholds above.^[2]

When the presumption does not apply, or is rebutted

Even then, section 707(b)(3) says the court shall consider whether the petition was filed in bad faith, or whether the totality of the circumstances of your financial situation demonstrates abuse.^[2]

The forms

The U.S. Trustee Program says most individual debtors must complete a version of Official Bankruptcy Form 122. For Chapter 7 these are Official Form 122A-1 (Statement of Your Current Monthly Income), Form 122A-1Supp (Statement of Exemption from Presumption of Abuse) and Form 122A-2 (Chapter 7 Means Test Calculation).^[3]

What this page does not cover

It does not calculate anyone’s means test, give the median income for any state, or say whether you qualify for Chapter 7 or must file under another chapter. It does not cover the other requirements to file, such as credit counseling, or the cost of filing. Bankruptcy has serious consequences and strict rules. This is general information, not legal advice; a bankruptcy attorney can apply the test to your numbers.

Your next step

For how Chapter 7 and Chapter 13 differ, see Chapter 7 vs. Chapter 13 bankruptcy. For the counseling course required before you file, see bankruptcy credit counseling and debtor education. For help finding a lawyer, see free legal help for debt problems. To check a company that offers bankruptcy or debt help, use the Register and our guide to checking a company yourself.

When we will update this page

We revisit it when the Bankruptcy Code dollar amounts are next adjusted, or when the cited sections change. Sources last read 6 October 2026.

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