Eligibility

Who Qualifies for
Chapter 7 Bankruptcy?

Means test income limits, household size, special rules for veterans, and how to check your eligibility.

The Means Test

Chapter 7 eligibility centers on the means test. If your household income over the past 6 months (annualized) is below your state's median for your household size, you qualify automatically. Above median, a detailed expense calculation determines eligibility.

Check your specific numbers at bankruptcymeanstest.org.

Special Exemptions

Social Security recipients: Social Security income is excluded from the means test entirely. Retirees on Social Security typically qualify regardless of amount.

Disabled veterans: Veterans with 30%+ disability who incurred debts during active duty are completely exempt from the means test.

Business debtors: If your debts are primarily business debts (not consumer), the means test does not apply.

Prior Filing Restrictions

You cannot receive a Chapter 7 discharge if you received a Chapter 7 discharge within the past 8 years, or a Chapter 13 discharge within the past 6 years (with limited exceptions). The period runs from filing date to filing date.

Check your eligibility dates for free at 1328f.com.

Household Size Disputes

The means test uses "household size" but the Code doesn't define it clearly. Courts use different tests: Census Bureau definition, "heads on beds," economic unit, or IRS dependency rules. If you have a non-standard household, this can affect your qualification.

Frequently Asked Questions

What is the income limit for Chapter 7?
There is no fixed dollar limit. Your income must be below your state's median for your household size. Medians range from about $40,000 (single, low-cost state) to $120,000+ (family of 4, high-cost state).
Can I file Chapter 7 if I have a job?
Yes. Having a job doesn't disqualify you. The means test compares your income to the median. Many employed people qualify for Chapter 7.
What if my income recently dropped?
The means test uses a 6-month lookback. If your income dropped recently, waiting a few months may help the high-income months fall off the calculation.
Can married couples file Chapter 7?
Yes, jointly or individually. If filing individually, your spouse's income is included in the means test but their expenses are deductible. Joint filing shares costs and eliminates all joint debts.

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Last updated: April 2026. Not legal advice.

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