A Chapter 7 "Means Test" Calculation Adjustment

 Posted on July 21, 2026 in Chapter 7

The numbers used in the Chapter 7 bankruptcy means test change from time to time. Even a fairly small adjustment can affect whether someone qualifies for Chapter 7.

Because the correct figures depend on exactly when your case is filed, you should not rely on an old online calculator or assume that numbers from a previous bankruptcy case still apply for a 2026 bankruptcy filing.

A Boerne bankruptcy attorney can complete the calculation using your income, household size, debts, expenses, and anticipated filing date.

What Is the Chapter 7 Means Test?

Chapter 7 bankruptcy allows people who qualify to discharge many unsecured debts. However, Congress created the means test to screen out higher-income debtors who may have enough money available to repay part of what they owe.

The means test is governed primarily by 11 U.S.C. §707(b). It does not simply ask whether you feel able to pay your debts. Instead, it uses a detailed formula involving:

• Your average income during a six-month period
• Your state and household size
• National and local expense standards
• Certain expenses you actually pay
• Secured and priority debt payments
• The amount of unsecured debt you owe

Passing the means test does not automatically guarantee that your Chapter 7 case will be approved, but it removes one important possible obstacle.

Does Everyone Have to Pass the Full Means Test to File for Chapter 7?

The means test is for those whose debts are mostly consumer debts, like credit card debt and medical debt. Someone whose debts are primarily from a business may therefore be exempt from the consumer means test. Certain disabled veterans, reservists, and members of the National Guard may also be exempt.

Whether debt should be classified as business or consumer debt is not always obvious. Someone with large credit card balances, personal loans, rental-property debt, or mixed personal and business debts should have an attorney review their case carefully.

Comparing Your Income With the Texas Median Income in the Chapter 7 Means Test 

The easiest way to pass the means test is to have household income at or below the Texas median. The Texas median-income figures for cases filed after April 1, 2026 for the following year are:

• One-person household: $66,837
• Two-person household: $86,714
• Three-person household: $99,273
• Four-person household: $117,962
• More than four people: Add $11,100 for each additional person

These figures are annual amounts, but the bankruptcy calculation begins with "current monthly income." Current monthly income is generally based on income earned during the six full calendar months before the bankruptcy filing. That average is then adjusted for the year and compared with the state figure.

For example, a case filed in August would generally examine income received from February through July. A bonus, period of overtime, job loss, or recent change in household income can significantly affect the result of the means test.

What Happens if Your Income Is Above the Median for the Chapter 7 Means Test? 

Being above the Texas median does not automatically prevent you from filing Chapter 7. It simply means you generally must complete the longer Chapter 7 Means Test Calculation.

This subtracts allowed expenses and debt payments from your adjusted current monthly income. Some deductions are based on what you actually spend, while others are limited by government standards.

IRS National and Local Standards are used for categories such as:

• Food, clothing, and personal care
• Housing and utilities
• Transportation
• Out-of-pocket health care

Other possible deductions include qualifying amounts for:

• Taxes
• Health and disability insurance
• Childcare
• Court-ordered support
• Term life insurance
• Certain education expenses
• Secured debts, including mortgages and vehicle loans
• Priority debts, such as some tax obligations

These bankruptcy expenses are not necessarily the same as your household budget. Your attorney can help you understand which expenses qualify.

Chapter 7 Means Test Disposable-Income Thresholds

After the means test subtracts your allowed expenses from your income, it calculates how much money you supposedly have left each month. The form then multiplies that amount by 60 to estimate how much you could pay toward unsecured debts over five years.

These calculations can become very complicated. The result may change based on your allowed expenses, household size, secured debts, taxes, and the total amount of unsecured debt you owe. The best way to figure this out is to work closely with an attorney who understands the law and is careful to avoid mistakes that could put you at risk.

What Does a "Presumption of Abuse" Mean in a Chapter 7 Bankruptcy Case?

A presumption of abuse does not necessarily mean that you are forbidden from filing Chapter 7. It means the calculation suggests that you have enough disposable income to repay creditors and that the case may be challenged or dismissed unless the presumption is overcome.

It may be possible to show special circumstances that justify additional expenses or an adjustment to income when there is no reasonable alternative. The debtor must provide a detailed explanation and documentation supporting those adjustments.

Depending on the situation, another option may simply be filing under Chapter 13. Chapter 13 bankruptcy allows debtors to make payments through a court-approved plan while using protections that may help with mortgage arrears, vehicle loans, tax debts, or property they want to keep.

Talk to a Kerrville, TX Chapter 7 Bankruptcy Attorney

Fortunately, the Chapter 7 means test is not a simple comparison between your paycheck and your monthly bills. It uses changing government figures, a special six-month income period, and expense deductions that may be very different from what you actually spend.

The experienced Boerne, TX consumer bankruptcy lawyer at the Law Offices of Chance M. McGhee will calculate the means test for you and explain whether Chapter 7 or another form of bankruptcy makes the most sense for your situation.

Call 210-342-3400 today.