Answers to the Most Common Questions About Chapter 7 Income Limits

What is the income limit for filing Chapter 7?

The income limit for Chapter 7 bankruptcy depends on your household size and your state's median income. If your income is below your state's median, you typically qualify automatically.

For example, as of 2024, the median income for a single person in California is around $70,000. If your income is above the median, you'll need to pass the "means test" to qualify.

What is the Chapter 7 means test?

The means test checks whether you have enough disposable income to repay your debts. It looks at your income, expenses, and family size over the past six months.

If your disposable income is too high, you may not qualify for Chapter 7 and could be steered toward Chapter 13 instead. The test varies slightly by state, so it's important to use up-to-date, local figures.

Do income limits vary by state?

Yes, income limits for Chapter 7 vary widely by state and household size. Each state has different cost-of-living benchmarks that impact your eligibility.

For example, a family of four in Texas will have a different income threshold than the same-sized family in New York. That’s why checking your specific state's figures is critical.

What if I make too much to file Chapter 7?

If you make too much, you might still qualify by passing the means test based on your expenses. If not, Chapter 13 bankruptcy is a common alternative.

Chapter 13 lets you keep your property while repaying some debts over 3–5 years. It’s often used when Chapter 7 isn't an option due to income, assets, or types of debt.

How do I know which chapter is right for me?

Choosing between Chapter 7, Chapter 13, or even Chapter 11 depends on your income, assets, and financial goals. Each option has trade-offs.

You can read more in our guide: Chapter 7 vs Chapter 13 vs Chapter 11 Bankruptcy: What's the Difference?

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