What Is the Income Limit for Filing Chapter 7?

There is no flat dollar income limit for filing Chapter 7 bankruptcy. Eligibility turns on how your household income compares to the median income for a family your size in your state, with a second calculation — the means test — for people who come in above that median. For a single earner, state medians currently run from roughly $58,000 to $84,000, and they rise with each additional household member.¹

The State Median Is the First Cutoff

Bankruptcy law looks at your “current monthly income,” which is the average of all gross income you received from every source during the six full calendar months before you file. That includes wages, business profits, rental income, investment returns, and regular financial contributions from other people in your household.² Multiply the monthly average by 12 and you have the annualized figure that gets compared to the state median.

If your annualized income is at or below the median for your household size, you qualify on income alone. The court cannot move to dismiss your case for abuse based on income, and you do not need to complete the means test.

The U.S. Trustee Program publishes updated median tables twice a year, in spring and fall, using Census Bureau data.³ A few examples from the table effective for cases filed on or after November 1, 2025:

Texas: $65,123 (1 earner), $84,491 (2 people), $96,728 (3 people), $114,938 (4 people)
California: $77,221 (1 earner), $100,161 (2 people), $113,553 (3 people), $135,505 (4 people)
New York: $71,393 (1 earner), $90,520 (2 people), $112,616 (3 people), $135,475 (4 people)

For households larger than four, add $11,100 per year for each additional person.¹ Check the current table for your own state before you file; the numbers above are illustrations, not the full list.

Income That Doesn’t Count

Not every dollar you receive goes into the calculation. Social Security benefits are fully excluded, which keeps retirees and people receiving Social Security disability from being pushed above the median by benefits they rely on.² Certain veterans’ payments are also excluded, including disability compensation, combat-related pay, and survivor benefits paid under federal military statutes. Payments to victims of terrorism and war crimes are left out as well.

Wages, self-employment earnings, unemployment benefits, pension and retirement distributions, rental income, interest, dividends, and regular contributions from a spouse or housemate toward shared expenses all count. One thing to watch: the six-month lookback means a short burst of overtime, a one-time bonus, or seasonal commission can lift your average over the median even if your current paycheck is smaller. Timing your filing matters.

Above the Median: The Means Test

If your annualized income is over the state median, you are not disqualified. You move to the means test, which subtracts a structured set of allowed expenses from your current monthly income and multiplies what remains by 60, representing five years of potential repayment.⁴ Where that 60-month figure lands decides whether you qualify:

Below $9,075: no presumption of abuse, and you qualify for Chapter 7.
Above $15,150: a presumption of abuse applies, and you generally cannot file Chapter 7.
Between $9,075 and $15,150: you qualify only if that amount is less than 25% of your total nonpriority unsecured debt, such as credit cards and medical bills.

These thresholds apply to cases filed between April 1, 2025, and March 31, 2028, and are periodically adjusted.⁴

Deductions That Can Pull You Back Under

The deductions the means test allows are often what let an above-median filer still qualify. Some are automatic allowances based on IRS National Standards (food, clothing, personal care, out-of-pocket healthcare) and IRS Local Standards (housing, utilities, transportation) that vary by county and household size.³ You do not need to prove you spend these amounts.

Other deductions use your actual monthly spending:⁵

Federal, state, and local income taxes, plus Social Security and Medicare taxes, reduced by any expected refund divided by 12.
Required payroll deductions such as mandatory retirement contributions, union dues, and employer-required uniform costs.
Term life insurance for yourself (and your spouse in a joint case), health insurance, disability insurance, and health savings account contributions.
Court-ordered child support and alimony you currently pay.
Average monthly payments on mortgages, car loans, and other secured debts, calculated by totaling what’s due over the next 60 months and dividing by 60.
Education costs required by your job, schooling for a physically or mentally challenged dependent when no public option exists, and private or public school expenses for dependent children under 18 up to $189.58 per child per month.
Ongoing cash contributions to religious or charitable organizations.

A filer earning $90,000 with a large mortgage, two car payments, and significant healthcare costs can end up with very little disposable income after these deductions. That’s the point of the test.

Rebutting a Presumption of Abuse

Landing above the $15,150 threshold is not an automatic bar. You can overcome the presumption by showing “special circumstances” that justify additional expenses or a reduction in income the standard formula does not capture. The statute names two examples: a serious medical condition and a call or order to active military duty. Courts have considered others, including large non-dischargeable student loan obligations, with results varying by jurisdiction. Any special circumstance has to be documented with specific evidence and explained in terms of expenses or income changes not already reflected in the standard deductions.

Married and Filing Alone

If you are married, living with your spouse, and filing on your own, you still have to include your spouse’s income in the initial calculation even though your spouse is not a debtor.⁶ That often pushes a household over the median.

The means test allows a “marital adjustment” to pull back portions of your spouse’s income that are not used for household expenses that benefit you or your dependents. Deductible portions typically include your spouse’s own tax withholdings, their student loan payments, support obligations for people who are not your dependents, and payments on debts that only your spouse is legally responsible for and that benefited only them. Credit card payments used for shared household expenses are not deductible. If you are legally separated under state law and living apart for reasons unrelated to the bankruptcy, you do not include your spouse’s income at all.

Filers Who Skip the Means Test

Some people are exempt from the means test entirely, no matter what they earn.

Disabled Veterans

You can skip the means test if you are a disabled veteran and the bulk of your debts were incurred while you were on active duty or performing a homeland defense activity.⁴ “Disabled” here means a disability rating of at least 30% from the Department of Veterans Affairs, or discharge from the military because of a disability sustained in the line of duty. You claim the exemption by filing Official Form 122A-1Supp with your petition.

National Guard and Reservists

National Guard members and military reservists who served on active duty or performed homeland defense activity for at least 90 days after September 11, 2001, are temporarily exempt from the means test. The exemption lasts through the active service and for 540 days after it ends.⁷

Primarily Business or Other Non-Consumer Debt

If more than half of your total debt is non-consumer debt, such as business debts, large tax obligations, or debts from failed commercial ventures, the means test does not apply. The abuse presumption is built for consumer debt, so filers whose financial trouble is primarily business-driven are evaluated differently.

If You Don’t Qualify for Chapter 7

Failing the means test does not leave you stuck. Once the U.S. Trustee or a creditor moves to dismiss your case for abuse, you have options.⁸

Convert to Chapter 13, which lets you keep your property and repay debts through a three-to-five-year plan based on your disposable income. Conversion is generally available as long as the case has not already been converted from another chapter.⁹
Rebut the presumption with evidence of special circumstances, as described above.
Ask the court to dismiss the case voluntarily and explore debt negotiation or out-of-court settlements with creditors.

Reporting Income Honestly

The income figures and expense amounts you put on bankruptcy forms are submitted under penalty of perjury. Intentionally hiding income, concealing assets, or making false statements can bring federal criminal charges carrying a fine and up to five years in prison.¹⁰ The court can also deny your discharge or revoke one already granted if fraud comes to light later. Trustees routinely check filings against tax returns and bank records, so discrepancies tend to surface.

1
U.S. Department of Justice. Median Income Data for Cases Filed on or After November 1, 2025
2
Office of the Law Revision Counsel. 11 U.S. Code 101 – Definitions
3
U.S. Department of Justice. Means Testing
4
Office of the Law Revision Counsel. 11 U.S.C. 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
5
United States Courts. Official Form 122A-2 Chapter 7 Means Test Calculation
6
U.S. Department of Justice. Chapter 7 Line by Line Means Test Analysis
7
United States Courts. Official Form 122A-1Supp – Statement of Exemption from Presumption of Abuse Under 707(b)(2)
8
United States Courts. Chapter 7 – Bankruptcy Basics
9
Legal Information Institute. Chapter 13 Plan
10
Office of the Law Revision Counsel. 18 U.S. Code 152 – Concealment of Assets; False Oaths and Claims; Bribery