How To Pass the Chapter 7 Means Test
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To qualify for Chapter 7 bankruptcy, you need to pass a means test. In the test, you compare your income with the median income of a similar size household in your state. If your income is lower, you pass the test. If it’s higher, you have to move on to the next step in the means test, which takes your expenses and disposable income into account.
Written by Attorney Jenni Klock Morel. Legally reviewed by Jonathan Petts
Updated September 3, 2025
How Do You Pass the Chapter 7 Means Test?
If you're thinking about filing Chapter 7 bankruptcy, one of the first steps is making sure you qualify, and that means passing the means test.
The good news? Many people do pass, especially if their income is lower than the median income for their state.
If your income is higher, you may still qualify after subtracting certain living expenses.
In this guide, we’ll break down each part of the means test and walk you through how it works and what forms you’ll need.
What Is the Chapter 7 Means Test?
The means test determines whether you qualify for Chapter 7 bankruptcy. In the test, you compare your income with your state’s income limits. If your income is less than the median income in your state for your household size, you pass the test.
If it’s more, you’ll have to take further steps in the means test to see if you’re eligible for Chapter 7.
✨ If you're eligible to use Upsolve's free filing tool, it will do the income part of the means test calculation for you.
If your income is above the limit, you may still qualify for Chapter 7 by factoring in certain expenses. A bankruptcy lawyer can help you understand your options. Upsolve can connect you with a local attorney for a free consultation.
What Are the Chapter 7 Means Test Forms?
Before you can file for Chapter 7 bankruptcy, the court needs to check if you qualify. That’s where the means test comes in.
To complete the test, you may need to fill out up to three official bankruptcy forms:
Statement of Your Current Monthly Income
Means Test Calculation
Statement of Exemption from Presumption of Abuse
✅ Most people only need to fill out the first form. If your income is below the limit for your state and household size, you pass the means test and can move forward with Chapter 7.
If your income is above the limit, you’ll need to fill out the second form to show your expenses. Many people still qualify at this stage, especially if they don’t have money left over after paying for basic living costs. This is called having little or no disposable income, and it can still make you eligible for Chapter 7.
If you don't pass the means test, you can consider filing Chapter 13 instead.
How Do I Fill Out the Statement of Current Monthly Income?
The first form, Chapter 7 Statement of Your Current Monthly Income, is used to calculate your current monthly income and to determine how it compares to the median income limit in your state for your household size.
There are a lot of questions, but they can be broken down into three steps.
✨ If you use Upsolve's free filing tool, it will ask you questions about your income and household size and fill in the forms for you.
Step 1: Calculate Your Monthly Income
Question 1 asks about your marital status. To complete questions 2–11 on this form, you’ll need to calculate your six-month average gross income.
💡 Gross income is your income before taxes, Social Security, or other expenses are taken out.
To calculate your six-month average gross income, you first need to add up your wages, salaries, and tips for the past six months.
Then, divide that number by six to get your average monthly income. If you receive any income from sources other than employment, you’ll need to factor that in as well.
💰 Other income may include child support, rental income, unemployment benefits, or money from side gigs.
Step 2: Calculate Your Annual Income
Next, you need to calculate your annual income to answer question 12.
Take your current monthly income amount (from question 11) and multiply it by 12. This number is your annual income.
Step 3: Compare Your Income to Families of Your Household Size in Your State
Question 13 requires you to find the annual income of a family of your household size in your state. Finally, question 14 has you compare your annual income from question 12 to the amount in question 13 to see if your income is more or less than the median income for a similarly sized household in your state.
If your income is less, you’ve met the means test requirements, and you can file for Chapter 7 bankruptcy. You do not need to fill out any additional means testing forms.
If your income is more than the limit listed for a family of your size in your state, you’ll need to complete the Means Test Calculation form. Read on to learn how.
How Do I Fill Out the Means Test Calculation Form?
The Means Test Calculation form helps figure out if you have any disposable income left after covering your basic living expenses. Disposable income is money you have left over at the end of the month that could be used to pay back debt.
To qualify for Chapter 7 at this stage, your disposable income needs to be zero or close to it. If you show a higher amount of disposable income, you might not be eligible for Chapter 7. Some people in this situation explore Chapter 13 instead, which lets you repay part of your debt over time.
This form has four main parts:
A calculation of your adjusted income
A breakdown of your monthly expenses (some are based on IRS guidelines; others are your actual costs)
A review to see if your case raises concerns about abuse of the bankruptcy process
A place to explain any special circumstances that may affect your ability to pay
Each section helps the court get a clearer picture of your financial situation and whether Chapter 7 is the right fit.
This portion of the means test can get legally complex. Many filers choose to get help from an experienced bankruptcy attorney. Many offer free consultations.
Step 1: Determine Your Adjusted Income
On the Means Test Calculation form, you start by using your income information from the Statement of Your Current Monthly Income form.
Follow the directions on the form to make the adjustments needed to get your adjusted income amount.
Step 2: Outline Your Expenses
Outline your expenses for the six months before filing for bankruptcy to get an average. Expenses, also referred to as deductions, include both your taxes and Social Security deductions, as well as your living expenses.
The IRS’s allowable living expenses goes into detail about what limits are placed on certain living expenses to ensure a reasonable standard of living.
Additional living expenses may also be included so long as they can be justified to the trustee. Some examples of additional living expenses could be a larger mortgage or car payment, dependent care, healthcare, court-ordered payments, and involuntary employment deductions.
Step 3: Subtract the Average of Taxes, Social Security, and Living Expenses
Once you’ve outlined all your expenses, add up the exact amounts that you spent for the last six months and divide this number by six to find your average monthly living expenses. Next, take your current monthly average income and subtract your average living expenses. Your income minus your expenses equals your disposable monthly income.
Step 4: Calculate Disposable Income Limits
If you have a negative disposable income, you can stop here, as you have met the means test and can file for Chapter 7.
Remember, negative disposable income means that you don’t have money left over at the end of the month to pay down your debt. That means there’s no presumption of abuse, and you’ve “passed” the means test.
Note that if your disposable income is positive, this doesn’t necessarily prohibit you from filing Chapter 7 and getting bankruptcy relief.
But having disposable income could lead to a presumption of abuse. In this case, you’d need to prove there are special circumstances that allow you to file Chapter 7 anyway, or you’d need to convert your case to Chapter 13. This is when getting legal help can be especially beneficial.
Is Anyone Exempt From the Means Test?
In some rare cases, you might be able to skip the means test even if your income is above the state limit. This is called a means test exemption.
If you qualify, you'll need to fill out a form called the Statement of Exemption from Presumption of Abuse. This form goes along with the Statement of Your Current Monthly Income. If you're exempt, you don’t have to complete the full Means Test Calculation form.
There are two main reasons someone might qualify for a means test exemption:
Your debts are mostly business debts. If the majority of your debts are related to a business or self-employment, and not for personal or household use, you're likely exempt from the means test.
You qualify under a military service provision. You may be exempt if:
You're a disabled veteran and took on the debt while on active duty or during a homeland defense activity, or
You’re a member of the National Guard or a reservist who was called to active duty or homeland defense.
If either of these applies to you, check the right boxes on the exemption form, sign it, and file it with your other bankruptcy paperwork. Many people in these situations still benefit from speaking with a bankruptcy lawyer to be sure they qualify for the exemption.
Let’s Summarize…
The Chapter 7 means test helps decide if you qualify for Chapter 7 bankruptcy. First, you compare your income to the median income for your state and household size. If it’s lower, you pass the test.
If your income is higher, the next step looks at your expenses to see if you have any disposable income left over. If you do, you may need to file Chapter 13 instead, which involves a repayment plan.
The forms can feel overwhelming, but don’t let that stop you from getting a fresh start. Upsolve is here to help if you're filing for Chapter 7.
