Use this calculator to estimate whether your income and expenses might allow you to qualify for Chapter 7 bankruptcy in California. This tool provides an estimate based on the Means Test criteria but is not a substitute for legal advice.
Enter the number of people in your household.
Your average gross monthly income from all sources over the last 6 full calendar months before filing.
Monthly Allowed Expenses (if applicable):
These expenses are considered if your income is above the California median. Enter 0 if not applicable.
Include federal, state, local income taxes, FICA, and property taxes if paid monthly.
Payments on debts secured by collateral you intend to keep. Note: The actual Means Test uses specific standards for these.
Total amount of unsecured debt that is not considered a priority (e.g., credit cards, medical bills).
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function calculateMeansTest() {
var householdSize = parseFloat(document.getElementById('householdSize').value);
var avgMonthlyIncome = parseFloat(document.getElementById('avgMonthlyIncome').value);
var healthInsurance = parseFloat(document.getElementById('healthInsurance').value);
var termLifeInsurance = parseFloat(document.getElementById('termLifeInsurance').value);
var courtOrderedPayments = parseFloat(document.getElementById('courtOrderedPayments').value);
var childCare = parseFloat(document.getElementById('childCare').value);
var educationExpenses = parseFloat(document.getElementById('educationExpenses').value);
var charitableContributions = parseFloat(document.getElementById('charitableContributions').value);
var monthlyTaxes = parseFloat(document.getElementById('monthlyTaxes').value);
var securedDebtPayments = parseFloat(document.getElementById('securedDebtPayments').value);
var priorityDebtPayments = parseFloat(document.getElementById('priorityDebtPayments').value);
var nonPriorityUnsecuredDebt = parseFloat(document.getElementById('nonPriorityUnsecuredDebt').value);
var resultDiv = document.getElementById('meansTestResult');
resultDiv.className = 'calc-result'; // Reset class
// Input validation
if (isNaN(householdSize) || householdSize < 1 ||
isNaN(avgMonthlyIncome) || avgMonthlyIncome < 0 ||
isNaN(healthInsurance) || healthInsurance < 0 ||
isNaN(termLifeInsurance) || termLifeInsurance < 0 ||
isNaN(courtOrderedPayments) || courtOrderedPayments < 0 ||
isNaN(childCare) || childCare < 0 ||
isNaN(educationExpenses) || educationExpenses < 0 ||
isNaN(charitableContributions) || charitableContributions < 0 ||
isNaN(monthlyTaxes) || monthlyTaxes < 0 ||
isNaN(securedDebtPayments) || securedDebtPayments < 0 ||
isNaN(priorityDebtPayments) || priorityDebtPayments < 0 ||
isNaN(nonPriorityUnsecuredDebt) || nonPriorityUnsecuredDebt < 0) {
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
resultDiv.classList.add('error');
return;
}
var medianIncomeThreshold;
// Example California Median Incomes (as of late 2023/early 2024 – these figures change periodically)
// Source: U.S. Trustee Program, Department of Justice (means testing data)
if (householdSize === 1) {
medianIncomeThreshold = 6583; // Approx $79,000 annually
} else if (householdSize === 2) {
medianIncomeThreshold = 8750; // Approx $105,000 annually
} else if (householdSize === 3) {
medianIncomeThreshold = 9750; // Approx $117,000 annually
} else if (householdSize === 4) {
medianIncomeThreshold = 10833; // Approx $130,000 annually
} else {
// For each additional person over 4, add approx $825/month ($9,900 annually)
medianIncomeThreshold = 10833 + (householdSize – 4) * 825;
}
var resultText = "";
// Step 1: Compare CMI to California Median Income
if (avgMonthlyIncome Median
var totalAllowedExpenses = healthInsurance + termLifeInsurance + courtOrderedPayments + childCare +
educationExpenses + charitableContributions + monthlyTaxes +
securedDebtPayments + priorityDebtPayments;
var disposableIncome = avgMonthlyIncome – totalAllowedExpenses;
var disposableIncomeOver60Months = disposableIncome * 60;
resultText += "Your average monthly income of $" + avgMonthlyIncome.toFixed(2) + " is above the California median income of $" + medianIncomeThreshold.toFixed(2) + " for a household of " + householdSize + ".";
resultText += "After deducting allowed expenses of $" + totalAllowedExpenses.toFixed(2) + ", your estimated monthly disposable income is $" + disposableIncome.toFixed(2) + ".";
resultText += "This amounts to $" + disposableIncomeOver60Months.toFixed(2) + " over 60 months.";
// Step 3: Apply the Means Test Thresholds
var thresholdLower = 8175; // $136.25/month * 60
var thresholdUpper = 13650; // $227.50/month * 60
if (disposableIncomeOver60Months = thresholdUpper) {
resultText += "Since your 60-month disposable income ($" + disposableIncomeOver60Months.toFixed(2) + ") is above $" + thresholdUpper.toFixed(2) + ", there is a presumption of abuse. You may not qualify for Chapter 7 bankruptcy and might consider Chapter 13.";
resultDiv.classList.add('error');
} else { // Between $8,175 and $13,650
var twentyFivePercentUnsecuredDebt = nonPriorityUnsecuredDebt * 0.25;
resultText += "Your 60-month disposable income ($" + disposableIncomeOver60Months.toFixed(2) + ") is between $" + thresholdLower.toFixed(2) + " and $" + thresholdUpper.toFixed(2) + ".";
resultText += "25% of your total non-priority unsecured debt ($" + nonPriorityUnsecuredDebt.toFixed(2) + ") is $" + twentyFivePercentUnsecuredDebt.toFixed(2) + ".";
if (disposableIncomeOver60Months > twentyFivePercentUnsecuredDebt) {
resultText += "Since your 60-month disposable income is greater than 25% of your non-priority unsecured debt, there is a presumption of abuse. You may not qualify for Chapter 7 bankruptcy and might consider Chapter 13.";
resultDiv.classList.add('error');
} else {
resultText += "Since your 60-month disposable income is not greater than 25% of your non-priority unsecured debt, you likely qualify for Chapter 7 bankruptcy (no presumption of abuse).";
}
}
}
resultDiv.innerHTML = resultText;
}
Understanding the Chapter 7 Means Test in California
The Chapter 7 Means Test is a crucial component of bankruptcy law designed to determine if an individual's income is low enough to qualify for Chapter 7 bankruptcy. This type of bankruptcy allows for the discharge of most unsecured debts, offering a fresh financial start. The test prevents higher-income earners from filing Chapter 7 when they could reasonably afford to repay some of their debts through a Chapter 13 repayment plan.
What is the Means Test?
Introduced with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the Means Test is a two-part calculation. It primarily compares your household's income to the median income for a similar household size in your state. If your income is above the median, a more detailed calculation involving your allowed expenses is performed to determine your "disposable income."
How the California Means Test Works
For California residents, the Means Test uses specific median income figures for the state, which are updated periodically by the U.S. Trustee Program. The process generally involves these steps:
Calculate Current Monthly Income (CMI): This is the average of your gross monthly income from all sources (including wages, business income, rental income, unemployment benefits, etc.) over the six full calendar months immediately preceding your bankruptcy filing. It's important to note that CMI includes income from all household members if their income is combined for household expenses, even if they are not filing for bankruptcy.
Compare CMI to California Median Income: Your CMI is compared to the median income for a household of your size in California.
If your CMI is below or equal to the California median income, you generally "presumptively qualify" for Chapter 7.
If your CMI is above the California median income, you must proceed to the second part of the test.
Calculate Disposable Income (if CMI is above median): In this step, certain allowed expenses are deducted from your CMI. These expenses are a combination of standardized amounts (set by the IRS for living expenses like food, clothing, housing, and transportation) and actual expenses (like health insurance premiums, court-ordered payments, certain taxes, and secured debt payments). The calculator above focuses on the actual expenses you can deduct.
Apply the Disposable Income Thresholds: After deducting allowed expenses, your remaining "disposable income" is multiplied by 60 (representing 60 months or 5 years). This 60-month disposable income is then compared to two key thresholds:
If your 60-month disposable income is less than $8,175, you generally qualify for Chapter 7 (no presumption of abuse).
If your 60-month disposable income is greater than or equal to $13,650, there is a "presumption of abuse," meaning you are presumed to be able to afford a Chapter 13 repayment plan.
If your 60-month disposable income falls between $8,175 and $13,650, a further calculation is made. A presumption of abuse arises if your 60-month disposable income is greater than 25% of your total non-priority unsecured debt.
Important Considerations
Not Legal Advice: This calculator provides an estimate and is not a substitute for professional legal advice. Bankruptcy law is complex, and a qualified attorney can provide guidance specific to your situation.
IRS Standards: The actual Means Test form (Form 122A-2) incorporates IRS National and Local Standards for certain living expenses. This calculator simplifies these by focusing on direct expense inputs. An attorney will use the precise, updated standards.
Median Income Fluctuations: The median income figures for California are updated periodically. The figures used in this calculator are examples and may not reflect the absolute latest data.
Chapter 13 Alternative: If you do not qualify for Chapter 7 due to the Means Test, Chapter 13 bankruptcy may be an alternative. Chapter 13 involves a repayment plan over 3 to 5 years.
Special Circumstances: There are exceptions to the Means Test for certain individuals, such as disabled veterans whose debt is primarily incurred while on active duty or performing homeland defense activities, or individuals with primarily non-consumer debts.
Consulting with an experienced bankruptcy attorney in California is highly recommended to accurately assess your eligibility and explore all available options.