Overwhelmed by personal debt in Illinois or Missouri? You may qualify for Chapter 7 bankruptcy – the fastest way to wipe out unsecured debt. But first, you’ll need to pass the Chapter 7 Means Test.
At A Bankruptcy Law Firm, LLC, we’ve helped thousands of individuals and families navigate the Means Test process and secure a fresh financial start.
In this guide, we’ll break down how the Chapter 7 Means Test works, the latest 2025 income limits, and what to expect if you’re considering bankruptcy.
And to get help with the Means Test or your bankruptcy case, don’t hesitate to contact our friendly and helpful team.
What is the Chapter 7 Means Test?
The Chapter 7 Means Test is a critical step in determining your eligibility to eliminate debts through Chapter 7 bankruptcy. Introduced as part of the 2005 bankruptcy law overhaul, the Means Test ensures that only individuals who cannot afford to repay their debts can file under Chapter 7, rather than Chapter 13, which involves a structured repayment plan.
In simple terms, the Means Test compares your income and allowable expenses to federal standards. If your income falls below the median for your household size in your state, you likely qualify for Chapter 7 bankruptcy and can discharge qualifying debts in as little as 3 to 6 months.
If your income exceeds the median, additional calculations are required through the Means Test, but individuals may still qualify after factoring in allowable expenses.
Why the Chapter 7 Means Test Matters
The Chapter 7 Means Test isn’t just a technical step; it plays a critical role in determining your eligibility for the fastest, most complete form of debt relief available.
For many individuals, Chapter 7 bankruptcy provides a fresh financial start by wiping out the most unsecured debts, such as credit card balances, medical bills, and personal loans. But without passing the Means Test, this option may not be available.
The Means Test ensures that only those who truly cannot afford to repay their debts qualify for Chapter 7. It prevents abuse of the system while still providing relief for individuals and families facing financial hardship.
Passing the Means Test could mean eliminating thousands of dollars in debt within months and protecting your home, vehicle, and other essential property through available exemptions.
If you don’t pass the Means Test, Chapter 13 may still offer a manageable repayment plan, but it takes longer and requires ongoing payments.
Understanding the Means Test and preparing for it properly can make the difference between a fresh start and years of continued financial stress. That’s why working with an experienced bankruptcy attorney is essential.
Personal Bankruptcy Statistics
Before we dive into the details of the Means Test, it’s helpful to understand why so many people choose Chapter 7 bankruptcy in the first place.
According to the latest data from the Administrative Office of the U.S. Courts, for the 12-month period ending March 31, 2025, there were approximately 505,771 non-business bankruptcy filings nationwide. That’s a 13.1% increase from 2024. Of those, the majority were Chapter 7 bankruptcy cases, with the remaining filings primarily consisting of Chapter 13 reorganizations.
In 2024, California had the highest number of bankruptcy filings, with approximately 119 filings per 100,000 residents. Following California, the states with the highest bankruptcy filings include Florida, Texas, Georgia, and Illinois.
What are the two most common reasons for an individual to file for bankruptcy? A decline in income and the cost of medical bills. The Kaiser Family Foundation found that 41% of residents in the US have some kind of medical debt, and 24% were considering filing for bankruptcy to solve this debt.
2025 Chapter 7 Income Limits
One of the most important factors of the Means Test is your household income. The federal government sets median income levels for each state, updated regularly.
If you earn less than the median income in your state, considering the number of people in your family, you are free to seek Chapter 7 bankruptcy protection.
Illinois Chapter 7 Income Limits
According to the Department of Justice, as of April 2025, the current median income figures for Illinois are as follows:
- 1-person household: $69,611
- 2-person household: $88,824
- 3-person household: $108,492
- 4-person household: $132,536
For each additional individual in excess of a 4-person household, add $11,100.
Missouri Chapter 7 Income Limits
The current median income figures for Missouri are as follows:
- 1-person household: $63,185
- 2-person household: $79,586
- 3-person household: $98,582
- 4-person household: $108,983
For each additional individual in excess of a 4-person household, add $11,100.
Note: These figures update at least twice a year. To confirm the most recent income limits, visit the United States Census Bureau or contact our office.
How the Means Test Calculates Your Eligibility
Your income is the most critical factor in the Chapter 7 Means Test, but calculating it isn’t always straightforward. The test doesn’t just look at your current paycheck. It also examines several factors that will determine your eligibility.
Time Frame and Income Calculations
The Means Test uses your average gross income over the past six months, not your current income. This means even if you recently lost your job or your income changed significantly, the test still considers the full six-month period.
For example, if you earned a high salary for five of the past six months but recently became unemployed, your average income may still reflect those higher earnings.
There has been some criticism of the Means Test over the years, thanks to its complexity and uniqueness in calculating a filer’s income eligibility. That’s why working with a bankruptcy attorney is essential to assess your eligibility and avoid mistakes properly.
Household Size and Its Impact
The size of your household significantly and directly affects your income limit for the Means Test. The more people in your household, the higher the income limit.
Your household size typically includes:
- Yourself
- Your spouse (if applicable)
- Dependents living in the home
For example, in Missouri, the 2025 Chapter 7 income limit for a single-person household is $63,185. But if your household includes four people, the limit is $108,983. Keep in mind that if your income is below these income limits, you are automatically eligible to file Chapter 7 bankruptcy, meaning you have passed the Means Test.
In some situations, dependents not living with you may still count, but these cases can be complex. If your household situation isn’t straightforward, consult a bankruptcy attorney to determine how household size applies to your Means Test.
What Counts as Income on the Means Test?
The Means Test requires you to report all income sources, not just your salary.
This includes:
- Wages or salary
- Part-time or freelance income
- Business or rental income
- Retirement income (excluding most Social Security benefits)
- Alimony or child support received
- Unemployment benefits
- Bonuses, commissions, or overtime
Accurately reporting these figures ensures your Means Test is calculated properly.
Allowed Expenses Under the Means Test
The Means Test also considers your expenses, but not all of them are based on what you actually spend. Instead, many are based on national and local IRS standards, including:
- Food, clothing, and household supplies (standardized amounts)
- Housing and utilities (local standards)
- Transportation costs (standardized)
- Healthcare expenses (standardized with some actual costs allowed)
Certain expenses, such as your actual mortgage or car loan payments, can be included if they meet specific criteria.
Determining Your Eligibility for Chapter 7 Bankruptcy
Your eligibility for Chapter 7 bankruptcy depends on how much disposable income remains after allowable expenses are deducted from your average income.
Here’s how eligibility is typically determined:
- If your projected disposable income over five years (your monthly disposable income multiplied by 60) is less than $9,075, you likely qualify for Chapter 7.
- If it exceeds $15,150, the court presumes you can afford to repay creditors and may require you to file for Chapter 13.
- If your disposable income falls between $9,075 and $15,150, a further calculation compares your disposable income to your unsecured debt.
If your disposable income over five years equals 25% or more of our unsecured debt, you may be required to file Chapter 13. If it’s less than 25%, you likely qualify for Chapter 7.
These thresholds are updated periodically; therefore, it is always recommended to consult a bankruptcy attorney for the most accurate assessment.
What Happens if You Pass the Means Test?
If you pass the Means Test, you can proceed with a Chapter 7 bankruptcy. This means you may be able to discharge most unsecured debts, such as credit card balances, medical bills, and personal loans, in as little as three to six months.
While the Means Test is a significant hurdle, it’s only the first step. The bankruptcy process itself involves additional paperwork, court hearings, and creditor notifications—all of which your attorney will help manage.
What Happens if You Fail the Means Test?
If you don’t pass the Means Test, it’s not the end of the world. You may still qualify for Chapter 13 bankruptcy, which allows you to repay a portion of your debts through a structured repayment plan.
You can also recalculate the Means Test if your income or financial situation changes, especially considering the six-month calculation period.
Additionally, you can explore other debt relief options, such as debt settlement.
A bankruptcy lawyer can help you understand your alternatives and whether a future reattempt at the Means Test is possible.
Chapter 7 Means Test Forms You’ll Need
Completing the Means Test involves filing specific forms with the bankruptcy court. These include:
- Form 122A-1: Chapter 7 Statement of Your Current Monthly Income. Determines if your income is below the median for your household. If your income is below the median, you have passed the Means Test, so the other two forms in this list will not apply to you.
- Form 122A-2: Chapter 7 Means Test Calculation. Required if your income exceeds the median to calculate allowable expenses and disposable income. This will help determine whether you might qualify for Chapter 7 or Chapter 13.
- Form 122A-1Supp: Statement of Exemption from Presumption of Abuse Under § 707(b)(2). Certain individuals, such as qualifying military members, may be exempt from the Means Test.
Completing these forms accurately is crucial during the bankruptcy filing process. Errors can delay your case or result in dismissal.
Get Experienced Help with the Chapter 7 Means Test In Missouri Or Illinois
The Chapter 7 Means Test is complex, but you don’t have to go through it alone. At A Bankruptcy Law Firm, LLC, we’ve helped thousands of Illinois and Missouri residents successfully navigate bankruptcy.
We’re ready to help you, too. Call (800) 7-BENSON or contact us online to schedule your free bankruptcy evaluation. Let’s find out if Chapter 7 can give you the fresh start you deserve.
Chapter 7 Means Test FAQ
As with most aspects of bankruptcy, the Chapter 7 Means Test can bring up a lot of questions for filers. At Benson Law Firm, it’s our goal to help people who are considering bankruptcy for financial relief. So, we’ve put together this Means Test FAQ to address some of the questions you might have.
Do I have to include my spouse’s income if I file alone?
Yes, if you share a household, you must include your spouse’s income. However, portions of your spouse’s income not used for household expenses may be excluded. Your attorney can explain how this applies to your situation.
Is Social Security income included in the Means Test?
Generally, Social Security retirement and disability income are excluded from the Means Test. But exceptions exist—speak with your lawyer for details.
What if I recently lost my job?
The Means Test looks at your average income over the past six months. A recent job loss could improve your chances of qualifying.
Are online Means Test calculators accurate?
Online tools offer rough estimates but often miss critical details. The most reliable way to know if you qualify is to work with an experienced bankruptcy attorney.
Can I retake the Means Test if I fail?
Yes. If your financial circumstances change, such as a drop in income or an increase in expenses, you can retake the Means Test.
What is the income cutoff for Chapter 7 in Missouri?
The income cutoff for Chapter 7 in Missouri changes every six months, based on federal data. However, in 2025, if you make less than the following figures, you likely qualify for Chapter 7 bankruptcy:
- 1-person household: $63,185
- 2-person household: $79,586
- 3-person household: $98,582
- 4-person household: $108,983
For each additional individual in excess of a 4-person household, add $11,100.
What is the income cutoff for Chapter 7 in Illinois?
The income limits for Chapter 7 bankruptcy in Illinois in 2025 are as follows:
- 1-person household: $69,611
- 2-person household: $88,824
- 3-person household: $108,492
- 4-person household: $132,536
For each additional individual in excess of a 4-person household, add $11,100.
Can I include income tax expenses in Means Test calculations?
Your income taxes are considered an expense that you can include in your calculations for the Means Test. It’s important to include them correctly on the forms.
For example, you must consider both the taxes taken out of your paycheck and the tax refund, or lack thereof, that you receive. This will adjust the actual amount you are paying in income taxes.
Important Disclaimer: The information discussed above and throughout this website should not be relied upon to make any decisions without first speaking to a bankruptcy attorney. There are many intricate rules of law governing bankruptcy, with many exceptions to the general rules that could change the advice given by an attorney based on the differing facts in each person’s special set of circumstances. THEREFORE, it is important to discuss any information contained in this website with one of our attorneys before taking any action or refraining from taking any action.
