What Is the Chapter 7 Means Test?

 Posted on September 14, 2026 in Bankruptcy

The Chapter 7 means test looks at your income to help determine whether you qualify for Chapter 7 bankruptcy. It also determines whether the law presumes that using Chapter 7 would be an abuse of the bankruptcy system. If your income is below the Illinois median for your household size, that presumption generally does not apply. If your income is higher, you may need to complete a second calculation using certain allowed expenses.

If you're weighing your options for debt relief in 2026, our DuPage County, IL bankruptcy lawyer, Eron McCormick, can tell you where you land before you file anything.

How Is Income Calculated for the Chapter 7 Means Test?

The starting point for the Chapter 7 means test is what the Bankruptcy Code calls current monthly income, defined in 11 U.S.C. § 101(10A). This is the average of your gross income over the six full calendar months before the month you file. That average is then multiplied by 12 to get an annual figure.

The process counts nearly every source of money, including wages, overtime, bonuses, rental income, unemployment, and regular contributions from a spouse who isn't filing with you. Social Security benefits are one notable exception. Because it looks backward at six specific months, it may not reflect what you're actually earning today. Someone who lost a job three months ago can still look like they’re earning too much money.

What Is the Income Limit for Chapter 7 Bankruptcy in Illinois?

The threshold depends on household size. For cases filed on or after July 15, 2026, the Illinois median family income figures are:

• One person: $73,180
• Two people: $93,934
• Three people: $113,625
• Four people: $137,902
• Add $11,100 for each additional person

If your annualized income falls at or below the number for your household, you've passed the means test. Under 11 U.S.C. § 707(b)(7), the rest of the calculation doesn't apply to you. These figures are updated roughly twice a year, so the number that applies is the one in effect on your filing date.

What Happens if Your Income Is Above the Median for a Chapter 7 Bankruptcy?

You aren't automatically disqualified if your income is above the median. You move to the longer version of the test, which subtracts allowed expenses from your income to find your monthly disposable income.

Many categories use standardized IRS figures rather than what you actually spend, including food, clothing, and out-of-pocket health costs. Housing and transportation use local standards that vary by region, so the applicable local figures are used for DuPage County households. You can also deduct certain payments on secured debts, such as a mortgage or car loan, along with priority debts like certain taxes and child support.

Once you have that monthly number, it’s multiplied by 60. If the result is less than $10,275, there is no presumption of abuse. If it is at least $17,150, the presumption applies. Between those amounts, the result depends on whether the money would pay at least 25 percent of your nonpriority unsecured debts, such as credit cards and medical bills.

Can You Still File Chapter 7 if You Fail the Means Test?

Waiting a month or two can push a large bonus or a stretch of overtime out of the six-month window. Household size is also important, since dependents you support may count even if they aren't on your tax return. And even when the presumption of abuse applies, the law lets you rebut it by showing special circumstances, such as a serious medical condition or a recent job loss that changed your finances.

Failing the test also isn't the end of the road. Chapter 13 bankruptcy lets you keep property while repaying part of what you owe, and for people behind on a mortgage, it's sometimes the better tool anyway.

Schedule a Free Consultation With Our Wheaton, IL Chapter 7 Bankruptcy Attorney

Attorney McCormick takes a guy-next-door approach and explains bankruptcy – including the means test – in terms that actually make sense. You work directly with him from the first conversation through your discharge, not with a rotating cast of staff.

Call The McCormick Law Firm, LLC at 630-517-8570 to schedule your free consultation today with our DuPage County consumer bankruptcy attorney. Discounts are available for military members, veterans, and first responders.