The Chapter 7 Means Test, Explained
The means test is the gatekeeping rule for Chapter 7: it asks whether your income is low enough to file, or whether the law presumes you can repay something in Chapter 13. It runs on formulas and published tables, not judgment calls — which means the current official figures matter enormously.
Step one: the median income comparison
Your gross household income for the six full calendar months before filing is annualized and compared to your state's median income for your household size, published by the U.S. Trustee Program. Below the median, you pass — no further math.
Step two: the expense deductions
Above-median filers complete the long form, deducting living expenses using IRS National and Local Standards plus actual costs for items like secured debt payments, taxes, and health insurance. What remains is monthly disposable income, and thresholds in § 707(b) decide whether a presumption of abuse arises.
Why the tables' effective dates matter
Median income figures and IRS standards are updated on their own schedules through the year, and the version in force on your filing date controls. Our monthly rule reports track the current figures with links to the official U.S. Trustee tables.
Exemption amounts and rule thresholds change on statutory schedules. See our monthly rule reports for the current figures with citations to the official sources.
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Majors Law Group, P.C. — an independent bankruptcy firm running its practice on Bankruptcy.AI — handles Chapter 7 and Chapter 13 cases in Arizona and Washington.
Bankruptcy.AI is a technology platform, not a law firm, and does not provide legal advice. Majors Law Group, P.C. is a separate, independent law firm. This page is general information and is not legal advice; outcomes depend on your specific facts.