Bankruptcy Eligibility

The Means Test Explained at a High Level

The means test compares your household income to your state's median income for a household of your size. If your income is below the median, you generally qualify for Chapter 7. If it's above, a more detailed calculation of allowed expenses and disposable income determines whether you still qualify for Chapter 7 or would need to file Chapter 13 instead. Because state median income figures change and vary by household size, we don't state specific dollar figures here — check current figures through the U.S. Trustee Program's official means testing information.

Chapter 7 vs. Chapter 13 Eligibility Differences

• Chapter 7 generally requires passing the means test based on income relative to your state's median
• Chapter 13 requires regular income sufficient to support a proposed repayment plan, with debt limits set by federal law
• Both require completing a pre-filing credit counseling course from an approved provider

Other Filing Requirements

• Completion of a credit counseling course within 180 days before filing
• Limits on how recently you may have filed a prior bankruptcy case and received a discharge
• Accurate disclosure of all income, assets, debts, and expenses on required schedules