Free Chapter 7 Means Test Calculator:
U.S. Bankruptcy Qualification Tool
Determine if you qualify to discharge your debts under Chapter 7 bankruptcy. This free estimation tool uses official U.S. Trustee Program (USTP) state median income limits and models the 3-step BAPCPA process: the business debt exception, the 6-month median income test, and the IRS allowed disposable income calculation.
If your income is higher than the state median, you must calculate “disposable income.” Enter your monthly expenses below. (Only necessary if you don’t pass the first two steps).
The Chapter 7 Means Test is a federally mandated financial formula introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. Before its introduction, any person could file for Chapter 7 bankruptcy regardless of their income level. Congress changed this rule to prevent high-income earners from wiping out debts they could afford to repay.
Today, the test acts as a gatekeeper: it measures whether your income is genuinely too low to repay creditors, or whether you should be redirected to Chapter 13 — a structured 3-to-5 year repayment plan instead. Passing the Means Test is the single most important eligibility requirement for a Chapter 7 discharge.
How the Chapter 7 Means Test Works: BAPCPA Rules & Form 122A Explained
The calculator is divided into three input steps. You can fill all three at once, or start with Steps 1 and 2 — you only need Step 3 if your income is above your state median. Here is exactly what to enter in each field.
The Business & Non-Consumer Debt Exemption
The State Median Income Test (Calculating Your CMI)
IRS National & Local Standard Deductions (Disposable Income Test)
The calculator runs these three tests in strict order. The moment you pass any one test, the sequence stops and you qualify — the remaining tests are marked as skipped. Here is the exact math for each test.
Pass condition: If the result is greater than 50%, you are exempt from the entire Means Test under 11 U.S.C. § 707(b)(1). The statute states that the abuse presumption only applies to cases where “the debts are primarily consumer debts.”
Worked example: You have $30,000 in credit card debt (consumer) and $40,000 in a personal business loan guarantee (non-consumer). Total debt = $70,000. Business debt ratio = $40,000 ÷ $70,000 = 57.1%. Since 57.1% > 50%, you are automatically exempt and qualify for Chapter 7 without any further testing.
Business/non-consumer debt > 50% of total debt. No Means Test required. Automatic Chapter 7 eligibility.
Consumer debt ≥ 50% of total debt. Proceed to Test 2 — you must pass the Median Income Test.
Then compare: Annualized Income vs. State Median for Household Size
State median values are published by the U.S. Trustee Program (a division of the DOJ) and updated every six months, typically in May and November. They are broken down by household size — a family of 4 in California has a much higher threshold than a single person in Mississippi.
Worked example: A family of 3 in Texas earns $5,500/month gross. Annualized income = $5,500 × 12 = $66,000. Texas median for a 3-person household (approx.) = $73,500. Since $66,000 < $73,500, they pass and qualify for Chapter 7 without calculating expenses.
Your annualized income is less than your state’s median for your household size. Automatic Chapter 7 pass.
Your income exceeds the state median. You must proceed to Test 3 and calculate your disposable income.
60-Month Projection = MDI × 60
The 60-month figure represents how much money you would theoretically have available to repay creditors over a 5-year Chapter 13 plan. The law uses this number as the benchmark for deciding whether it would be an “abuse” of the bankruptcy system for you to file Chapter 7 instead.
The three legal thresholds for the 60-month amount (approx. 2025/2026 DOJ figures):
60-month disposable income below $10,000. Presumption of abuse does NOT arise. You pass and qualify for Chapter 7.
The law compares the 60-month amount to 25% of your total non-priority unsecured debt. If below 25%, you pass; if above, you fail.
60-month disposable income exceeds $16,650 (approx.). Presumption of abuse arises. You likely cannot file Chapter 7 — Chapter 13 is required.
Worked example: A debtor over the Texas median earns $6,800/month. Their allowed IRS expenses total $5,900/month. MDI = $6,800 − $5,900 = $900/month. 60-month total = $900 × 60 = $54,000. Since $54,000 > $16,650, a presumption of abuse arises and they likely cannot file Chapter 7.
The Means Test is a sequential waterfall — not all three tests are always run. The calculator stops the moment you pass any test and skips the rest. Here is the exact decision path:
NO → Continue to Test 2. You must pass the income check.
NO → You are above the state median. You must continue to Test 3.
NO (over threshold) → A presumption of abuse arises. You likely cannot file Chapter 7 — Chapter 13 is typically required.
The #1 Means Test Trap: Understanding the “6-Month Lookback”
The most common mistake people make when taking the Chapter 7 Means Test is using their current salary. The bankruptcy court does not look at what you are making today.
Instead, the law requires a 6-Month Lookback Period (officially called “Current Monthly Income” or CMI). The court calculates your average gross income over the six full calendar months immediately preceding the month you file.
If you file for bankruptcy on October 15th, the court ignores October. They look exclusively at your total gross income from April 1st through September 30th, divide that total by six, and multiply by 12 to get your annual median income figure.
Why this matters: If you recently lost your job, your previous high salary might still disqualify you because the lookback period drags your average up. Conversely, if you just got a significant raise, you might still qualify to file right now because the six months of lower income keep your average below the state median.
This calculator automatically assumes you are entering your average monthly income over the last six months. To get an accurate result, add up all your gross paystubs from the last six full months and divide by six before entering the number.
Understanding Your Verdict: Chapter 7 Discharge vs. Chapter 13 Repayment
U.S. Bankruptcy Court Terminology: A Plain-English Glossary
2025–2026 USTP State Median Income Limits by Household Size
Washington State
Mississippi
All 50 states + DC
beyond household of 4
| State / Territory | 1 Person | 2 People | 3 People | 4 People | Monthly (4-Person) |
|---|
5 Real U.S. Bankruptcy Scenarios: Who Qualifies to Discharge Debt?
5 Pro Tips for U.S. Filers: Passing the Means Test & Protecting Assets
The Chapter 7 Means Test does not use your current paycheck. It calculates your “Current Monthly Income” (CMI) as the average of your gross income over the 6 full calendar months before the month you file. This distinction is critical and most people miss it.
This means your filing month is a strategic lever. If you:
- Recently lost your job or took a pay cut — wait until that lower income is included in the 6-month window
- Received a large bonus, overtime, or commission — wait until that high-income month has “aged out” of the 6-month lookback
- Just stopped self-employment — let those high revenue months fall outside the window before filing
A one-month delay can sometimes reduce your annualized CMI by thousands of dollars — enough to push you below your state median and qualify at Step 2 without even needing to calculate expenses.
If you fail Step 2 (income above median), Step 3 becomes your lifeline — and the IRS National and Local Standard expense allowances are far more generous than most people realize. The bankruptcy form (Official Form 122A-2) allows specific expense categories that are frequently overlooked:
- Health insurance premiums — 100% deductible for you AND your dependents, including dental and vision
- Term life insurance premiums — for the debtor’s life only (not spouse or kids)
- Childcare and dependent care — daycare, after-school care, summer programs that enable you to work
- Court-ordered payments — alimony, child support, restitution (all fully deductible)
- Secured debt payments — mortgage, car loan payments you intend to keep are allowed in full
- Priority debt payments — taxes owed, student loan minimums in some districts
- Home energy costs above IRS standard — if your actual utility bills exceed the IRS standard, you can sometimes deduct the actual amount
- Telecommunications — cell phone (1 line for you), internet if needed for work
The goal is to reduce your Monthly Disposable Income (MDI) as close to zero as possible. Each $100/month in additional allowed expenses reduces your 60-month disposable income figure by $6,000.
Under 11 U.S.C. § 707(b)(1), the Means Test only applies to debtors whose debts are “primarily consumer debts.” If more than 50% of your total debt is non-consumer (business) debt, you are completely exempt from the Means Test — your income is irrelevant.
Most people underestimate how much of their debt qualifies as “business debt.” The following all count as non-consumer debt:
- SBA loans, business bank loans, or lines of credit — even if personally guaranteed
- Business credit card balances (even on a card in your name, if used for business)
- Equipment leases, vehicle leases used for business
- Personal guarantees on commercial leases or vendor contracts
- Federal, state, and payroll tax debts
- Student loans used to generate income (debated, but often classified as non-consumer)
- Investment property mortgage debt (investment — not primary residence)
Courts look at the purpose of the debt, not who signed for it. A personal credit card used exclusively for your LLC’s operating expenses is business debt.
When a married person files for bankruptcy individually (not jointly), the Means Test still requires you to include your non-filing spouse’s income — but with one powerful exception: you can deduct the portion of your spouse’s income that is not regularly contributed to household expenses. This is called the marital adjustment deduction.
The marital adjustment allows you to subtract the non-filing spouse’s income that they spend on:
- Their own separate debts not shared with the filing spouse
- Their own personal expenses (car payment, student loan, personal subscriptions)
- Expenses for children from a prior relationship
This can be especially powerful when one spouse earns significantly more and has their own large debts. Proper documentation of what portion of the non-filing spouse’s income goes toward their own obligations — not the shared household — can materially reduce the CMI used in the Means Test.
Additionally, in some cases, filing individually instead of jointly is strategically superior even when both spouses are in debt, because the combined joint income would exceed the married-couple median by a larger amount.
When you reach Step 3 of the Means Test (the Disposable Income Test), most people think there’s only one outcome — either your disposable income is low enough or it isn’t. In reality, the law provides three separate thresholds at Step 3, and you only need to clear ONE of them to pass:
- ✔ Safe Harbor — Under $10,000: If your 60-month MDI total is under $10,000 (adjusted periodically for inflation), you automatically pass Step 3 with no further analysis needed. This is the cleanest pass.
- ✔ Automatic Pass — Under $16,650 (2026 threshold): If your 60-month MDI total is under $16,650, you also automatically pass — unless this amount is also more than 25% of your total nonpriority unsecured debt. The court checks both conditions.
- ✔ 25% of Unsecured Debt Rule: Even if your 60-month total is over $10,000 and over $16,650, you can still pass if that amount is less than 25% of your total nonpriority unsecured debt. The logic: if you couldn’t even pay off 25% of what you owe over 5 years, there’s no point in a Chapter 13 plan.
Understanding all three thresholds matters most in borderline cases. If your 60-month total is $12,000 and your total debt is $60,000 — you fail threshold #1 ($10K) but pass threshold #2 automatically ($12K < $16,650), so you qualify. If your total is $18,000 and debt is $90,000 — you fail thresholds #1 and #2 but the 25% rule saves you ($18K < 25% of $90K = $22,500).
Chapter 7 Bankruptcy & Means Test FAQ: Answers for Consumers
The Chapter 7 Means Test is a financial qualification screening created by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Its purpose is to ensure that only individuals who genuinely cannot repay their debts are allowed to file for Chapter 7 bankruptcy — which provides a complete discharge of most unsecured debts.
The test works in three sequential steps:
- Step 1 (Business Debt Check): If more than 50% of your debt is non-consumer/business debt, you are fully exempt from the test.
- Step 2 (Median Income Test): If your annualized Current Monthly Income is at or below your state’s median for your household size, you automatically qualify.
- Step 3 (Disposable Income Test): If your income exceeds the median, the court calculates how much disposable income remains after allowed expenses. If it’s too high, there is a “presumption of abuse” and the court may dismiss your case or convert it to Chapter 13.
The Means Test applies to individual consumer debtors filing for Chapter 7 bankruptcy. However, several groups are automatically exempt:
- Primarily business debtors: If more than 50% of your total debt is non-consumer (business) debt, the Means Test does not apply to you under 11 U.S.C. § 707(b)(1).
- Disabled veterans: Veterans whose debt was incurred primarily during active duty or performing a homeland defense activity are exempt if they are disabled (as defined under 38 U.S.C. § 3741(1)).
- Active duty military members: Members of the National Guard or reserves who are on active duty or performing homeland defense activities may be exempt.
- Non-consumer filers: Businesses filing Chapter 7 (corporations, LLCs) are not subject to the Means Test — it only applies to individuals.
Failing the Means Test does not mean you cannot file for bankruptcy — it means Chapter 7 is presumptively unavailable. You have three main options:
- File Chapter 13 instead: Chapter 13 allows you to repay debts over a 3–5 year court-supervised plan based on your actual disposable income. At the end of the plan, remaining eligible debts are discharged. This is the most common alternative for those who fail the Means Test.
- Challenge the “presumption of abuse”: Even if your numbers technically show a presumption of abuse, you can rebut it by demonstrating “special circumstances” — unusual medical expenses, job loss after the lookback period, or other extraordinary expenses not captured by the IRS standards.
- Wait and refile: If your income is temporarily elevated (bonus, severance, freelance project), waiting until that income ages out of the 6-month lookback window can reduce your CMI below the median, allowing you to qualify on a later filing.
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Type | Liquidation | Reorganization / Repayment Plan |
| Duration | ~3–6 months | 3–5 years |
| Eligibility | Must pass Means Test | Regular income required |
| Debt Discharge | Most unsecured debt eliminated | Remaining debt discharged after plan |
| Assets | Non-exempt assets may be sold | Keep all assets, repay some debts |
| Credit Impact | Stays on report 10 years | Stays on report 7 years |
| Best For | Low income, few assets, need fresh start fast | Regular income, want to keep home/car, above median earners |
Chapter 7 can discharge (permanently eliminate) many types of unsecured debt, but not all. Here is a breakdown:
- ✔ Dischargeable: Credit card balances, medical bills, personal loans, utility arrears, lease deficiencies, civil judgments (non-fraud), older income tax debts (specific conditions apply)
- ✘ Non-Dischargeable: Student loans (except in rare hardship cases), child support and alimony, recent tax debts (last 3 years), court-ordered restitution, debts from fraud or intentional harm, most fines and penalties owed to government agencies
Current Monthly Income (CMI) is the average of your gross income for the 6 full calendar months immediately before the calendar month in which you file your petition. It is not your current month’s income.
For example, if you file in October, your CMI uses income from April through September — divided by 6.
CMI includes nearly all income sources:
- Wages, salary, tips, commissions, overtime
- Net business or self-employment income
- Rental income (gross rents, not net)
- Interest, dividends, pension/retirement distributions
- Unemployment compensation
- Alimony and spousal support received
- Regular contributions from others to household expenses
CMI excludes Social Security benefits (including SSDI and SSA retirement), certain military pay, and payments to victims of war crimes.
Yes — but with an important deduction. When a married person files individually, the Means Test still requires you to report your non-filing spouse’s income as part of your CMI. This often surprises people.
However, you are allowed to subtract the “marital adjustment” — the portion of your spouse’s income that is not regularly paid toward household expenses of the debtor or the debtor’s dependents. This includes:
- Your spouse’s own personal debt payments (car loan, student loan)
- Expenses for children from a prior relationship
- Your spouse’s own personal subscriptions or discretionary spending
The marital adjustment is reported on Line 17 of Official Form 122A-1 (or Line 13 of 122A-2). It must be documented and provable — the trustee will ask for details.
Self-employed filers use their net business income (gross revenues minus ordinary and necessary business expenses) for CMI purposes. You will need 6 months of business bank statements and a profit/loss summary to document this accurately.
Key rules for self-employment income on the Means Test:
- Use net profit, not gross revenue — business expenses (supplies, contract labor, software) are deducted before inclusion in CMI
- If your business income varies wildly month to month, the 6-month average still applies — there is no smoothing mechanism beyond the built-in averaging
- If your business has genuinely ceased operations in the lookback period, those months of zero income are included in the average, reducing your CMI
- Income from a side gig, freelance work, or Uber/DoorDash counts — document it with bank deposits and 1099 records
No — Social Security benefits are fully excluded from CMI under 11 U.S.C. § 101(10A). This is one of the most important and beneficial rules for retirees and disabled filers. The exclusion covers:
- Social Security retirement benefits (SSA)
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Survivor benefits paid through Social Security
This means a retiree who relies on Social Security as their primary income source may have a CMI of $0 for Means Test purposes — automatically qualifying for Chapter 7 regardless of their actual monthly deposit from SSA.
Courts determine the nature of a debt by its purpose at the time it was incurred — not by who signed for it or whose name is on the account. A “consumer debt” is one incurred primarily for personal, family, or household purposes. A “non-consumer debt” is one incurred for business or investment purposes.
Non-consumer (business) debts include:
- SBA loans, business bank loans, commercial lines of credit
- Business credit card balances — even cards in your personal name, if the charges were for business operations
- Personal guarantees on business leases, vendor contracts, or equipment leases
- Investment property mortgages (property held for profit, not your primary residence)
- Federal and state income tax debts, payroll tax liabilities
- Business-related tort liability (e.g., a lawsuit from a business transaction)
Consumer debts include:
- Primary home mortgage and home equity loans
- Personal credit cards used for personal spending
- Medical bills and personal loans
- Auto loans for personal vehicles
Yes — personal guarantees on business debts are generally classified as business (non-consumer) debt, regardless of who signed the document. Courts look at the underlying purpose of the loan, not the form of the guarantee.
If you personally guaranteed a loan that the business used for commercial purposes — payroll, inventory, equipment, rent — that debt retains its business character when you’re personally liable for it.
This is confirmed by multiple circuit court decisions and is the majority rule in U.S. bankruptcy courts. The leading standard comes from In re Stewart and similar cases that focus on the debtor’s primary purpose at the time the obligation was created.
The calculation is straightforward: divide your total business/non-consumer debt by your total debt (business + consumer combined). If the result is greater than 50%, you are exempt from the Means Test.
Formula: Business Debt ÷ Total Debt > 50%
Example:
Consumer debt: $55,000 (mortgage, personal cards, medical)
Business debt: $60,000 (SBA loan, personal guarantee on office lease)
Total: $115,000
Business %: $60,000 ÷ $115,000 = 52.2% → EXEMPT ✔
Use the scheduled amount of debt at the time of filing, not the original loan amount. Make sure to classify every single debt before running this calculation — even small business-related balances can push you over the 50% line.
The IRS publishes standardized expense allowances used in both tax collection and bankruptcy cases. The Means Test uses these allowances to determine what you are permitted to deduct at Step 3 — regardless of what you actually spend.
National Standards (same nationwide) cover:
- Food, clothing, and household supplies
- Personal care products and services
- Out-of-pocket health care expenses
Local Standards (vary by county/metro area) cover:
- Housing and utilities (based on your county and household size)
- Transportation ownership costs (based on your region)
- Transportation operating costs (fuel, insurance, maintenance)
If your actual expenses are lower than the IRS standard, you still get to deduct the full standard amount. If your actual expenses are higher, you can only deduct the standard in most cases — though some categories allow actual expenses if you document them.
The Means Test (Official Form 122A-2) allows deductions in the following categories. These reduce your Monthly Disposable Income (MDI):
- IRS Living Expenses: Food, clothing, personal care, and out-of-pocket health care (National Standards)
- Housing & Utilities: Rent or mortgage-related expenses plus utilities (Local Standards by county)
- Transportation: Vehicle ownership cost (loan/lease) + operating expenses (gas, insurance, maintenance) — Local Standards
- Health Insurance Premiums: Actual amount paid for you, your spouse, and dependents — fully deductible
- Term Life Insurance: Premiums for the debtor’s life only (not whole life, not spouse/children)
- Childcare & Dependent Care: Actual expenses that enable you to work or attend school
- Court-Ordered Payments: Child support, alimony, restitution — deduct the actual monthly amount
- Education Expenses: For a disabled child or for employment while in bankruptcy (limited)
- Secured Debt Payments: Mortgage, car loan, or other secured debts you intend to reaffirm and keep paying
- Priority Debt Payments: Tax debts, certain student loan minimums (varies by jurisdiction)
- Administrative Expenses: Attorney fees and trustee fees associated with a Chapter 13 plan (if applicable)
The $10,000 Safe Harbor (sometimes called the “absolute safe harbor”) means: if your 60-month Monthly Disposable Income (MDI) total is less than $10,000, there is no presumption of abuse — you automatically pass Step 3 without any further analysis.
In practice: if your MDI (income minus all allowed expenses) is less than $166.67 per month, your 60-month total will be under $10,000, and you qualify.
The three Step 3 thresholds in order:
- Under $10,000: Automatic pass. No presumption of abuse. No further analysis.
- $10,000–$16,650: Pass UNLESS this amount represents 25% or more of your nonpriority unsecured debt. If it’s less than 25% of that debt, you still pass.
- Over $16,650: Presumption of abuse arises unless rebutted by special circumstances.
State median income figures used in the Means Test come from the U.S. Census Bureau’s American Community Survey, updated and published periodically by the U.S. Department of Justice. The figures are presented as annual income amounts for household sizes 1 through 4, with a fixed dollar increment added for each additional person beyond 4.
Household size counting rules:
- Count everyone who lives with you and relies on your household income — including your spouse, children, parents, and other dependents
- You count even if they have their own income
- Roommates who share expenses but are not family members are generally not counted
- Foster children and live-in dependents you financially support may be counted
The formula for states (2026): Base amount for 1–4 persons is published by state. For each additional person beyond 4, add $10,500 per person.
This depends on timing. If you just lost your job in the current calendar month, you face a counterintuitive situation: your CMI still reflects the last 6 months of income — which includes all those months you were earning a salary. Filing immediately could make you appear to have high income even though you currently have none.
The strategic question is: how many months of high income are still inside your 6-month lookback window?
- If you lost your job in October and want to file in November, your CMI includes May–October — 5 months of full salary
- If you wait until April to file, your CMI includes October–March — 5 months of $0 (assuming unemployment income is lower)
Waiting 3–4 months after job loss often dramatically reduces CMI, potentially dropping you far below your state’s median and qualifying you easily at Step 2.
Even if the Means Test calculation results in a presumption of abuse, you can rebut it by demonstrating “special circumstances” under 11 U.S.C. § 707(b)(2)(B). These are extraordinary financial conditions not captured by the standardized IRS expense figures.
Qualifying special circumstances include:
- Serious medical condition: Ongoing medical treatment, medication costs, or a disability that creates significant expenses beyond what the IRS standard allows
- Active military duty call-up: A sudden income increase due to reserve call-up that will end, or increased expenses from military service
- Significant income reduction: Loss of employment, pay cut, or business closure that occurred after the 6-month lookback period (so it doesn’t appear in CMI yet)
- Unusual one-time income: A non-recurring event — sale of an asset, insurance settlement, or one-time bonus — that inflated the 6-month average but is not ongoing
To rebut the presumption, you must file a written statement with the court providing itemized amounts and explaining the circumstances. The documentation standard is high — declarations must be signed under penalty of perjury.
Yes. Passing the Means Test is necessary but not always sufficient. The U.S. Trustee (or a creditor) can still file a motion to dismiss your Chapter 7 case under the “totality of the circumstances” standard — even when the mathematical test shows no presumption of abuse.
Under this standard, the court examines your overall financial picture, including:
- Whether you have the ability to repay a meaningful portion of your debts, regardless of the Means Test result
- Whether your bankruptcy petition appears to have been filed in bad faith
- Lifestyle inconsistencies — e.g., high entertainment or luxury expenses visible from bank statements
- Recent large purchases or cash withdrawals before filing
- Whether you took on significant new debt shortly before filing
These are the two official bankruptcy court forms used to complete the Chapter 7 Means Test:
- Official Form 122A-1 (Chapter 7 Statement of Your Current Monthly Income): Used by ALL Chapter 7 filers. It calculates your CMI (6-month average income) and compares it to your state’s median. If you are at or below the median, you complete only this form and you’re done with the Means Test.
- Official Form 122A-2 (Chapter 7 Means Test Calculation): Used ONLY by filers whose CMI is above their state median. This is the longer, more complex form that calculates allowable expenses, determines your Monthly Disposable Income (MDI), and determines whether a presumption of abuse arises.
Both forms are available for free at uscourts.gov under “Forms.” They must be filed with your bankruptcy petition — typically as part of your bankruptcy schedules submitted to the court.
Technically, you have the right to file bankruptcy pro se (on your own, without an attorney) in the United States. However, this is generally inadvisable for most people. Here’s a practical breakdown:
- Simple cases (clearly below median, straightforward finances): Pro se filing is more manageable. Resources include your local bankruptcy court’s self-help center and legal aid organizations.
- Above-median cases (requiring Form 122A-2): The expense deduction rules, local IRS standards, and disposable income calculation are complex. Errors can result in dismissal or a presumption of abuse that could have been avoided.
- Borderline cases: An experienced bankruptcy attorney often finds deductions and strategies that self-represented filers miss — the attorney’s fee frequently pays for itself in better outcomes.
Yes — it is legally mandatory. Under BAPCPA (2005), every individual who files for bankruptcy must complete an approved credit counseling course from a U.S. Trustee-approved agency within the 180 days before filing. There are no exceptions except in very narrow emergency circumstances.
Key requirements:
- Must be from a U.S. Trustee-approved agency — a list is available at justice.gov/ust
- Takes approximately 60–90 minutes and can be done online, by phone, or in person
- Costs typically $15–$50 (fee waivers available for low-income filers)
- You receive a Certificate of Completion that must be filed with your bankruptcy petition
Additionally, after filing, you must complete a Debtor Education course (also called a financial management course) before your debts can be discharged. This is a second, separate requirement.
Legal Disclaimer, Calculator Methodology & Official U.S. Trustee Sources
- County-level Local Standards for housing and transportation from the U.S. Trustee Program (USTP)
- Specific IRS National Standards that vary by household size
- Case-by-case “special circumstances” rebuttal arguments (11 U.S.C. § 707(b)(2)(B))
- Chapter 13 priority debt calculations that interact with the Means Test
- Trustee objections and judicial discretion in your district
- American Bar Association — Find Legal Help
- Legal Services Corporation — Free Legal Aid
- Your state’s bar association lawyer referral service
- Your local U.S. Bankruptcy Court’s self-help resources
| Data Component | Source | Update Frequency | Current Version | Status |
|---|---|---|---|---|
| State Median Income Thresholds | U.S. Trustee Program / Census Bureau ACS | Twice yearly (May & Nov) | Nov 1, 2025 tables | ● Current |
| IRS National Standards (Food, Clothing, Other) | Internal Revenue Service | Annually (April) | April 21, 2025 tables | ● Current |
| IRS Local Standards (Housing & Transportation) | U.S. Trustee Program (USTP version) | Annually (April) | April 2025 USTP tables | ● Current |
| Means Test Abuse Thresholds (§ 707(b)(2)) | 11 U.S.C. § 707(b) — Bankruptcy Code | Statutory (rarely changes) | BAPCPA 2005 as amended | Statutory |
| Household Size Adjustments (+per person) | U.S. Trustee Program | With each USTP release | Nov 1, 2025 tables | ● Current |
| Next Scheduled Data Update | U.S. Trustee Program | — | May 2026 (estimated) | Upcoming |
