Bankruptcy Alert: New Chapter 7 Means Test Income Limits Now in Effect (November 1, 2025 Update)

The income figures for Chapter 7 bankruptcy eligibility have changed again. Practitioners and clients must take immediate note: The U.S. Trustee Program has released its update to the median income figures used in the Means Test, and these new numbers are effective for all cases filed on or after November 1, 2025.

Failing to use the correct, current figures can lead to delays, dismissals, or costly mistakes. Here is what you need to know about the latest update and how it impacts Chapter 7 eligibility today.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Step 1 of the Means Test

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) relies on the Means Test to determine eligibility for Chapter 7. The first and most critical step is comparing a debtor’s annualized six-month average income (Current Monthly Income, or CMI) to the median income for a household of the same size in their state.

• If the debtor’s income is below the state’s median, they automatically pass the test and are presumed eligible for Chapter 7. I say “presumed” because other factors need to be considered, such as non-exempt assets and disposable income that could result in filing Chapter 13 bankruptcy.
• If the debtor’s income is above the median, they must proceed to the complex second step, where expenses are calculated to determine disposable income.

Because the median income figures are updated twice a year using data from the U.S. Census Bureau, the simple fact of when a case is filed can be the difference between a quick Chapter 7 discharge and a mandatory Chapter 13 repayment plan.

I provided an example of this using the Means Test and showed how being a furloughed employee due to the government shutdown can help you qualify for Chapter 7. You can see that video via this link on my YouTube channel.

Means Test Median Income (Effective Nov. 1, 2025)

These new numbers show how the economy has changed, with many states raising their median income levels.

Professor’s Note: If a client or debtor was slightly above the old threshold, the new, higher numbers may now allow them to skip the full Means Test calculation.

Action Steps for Debtors and Attorneys

1. Re-Run Calculations: If you started working on the bankruptcy petition before the November 1^st update, re-run the CMI calculation. Even a small increase in the median threshold can result in filing Chapter 7 instead of Chapter 13.
2. Strategic Timing: For debtors whose income has trended downward or whose CMI is close to the old limits, the updated figures create the opportunity to qualify immediately for Chapter 7 bankruptcy.
3. Consult the Source: The complete list of updated median income figures for all U.S. states and territories is published by the U.S. Trustee Program. Always refer to the official document to ensure accuracy. The chart below shows the latest figures.

		FAMILY SIZE
STATE	1 EARNER	2 PEOPLE	3 PEOPLE	4 PEOPLE *
Alabama	$62,672	$75,465	$90,321	$104,003
Alaska	$83,617	$109,662	$109,662	$138,492
Arizona	$72,039	$86,745	$102,274	$118,067
Arkansas	$56,923	$71,742	$80,218	$94,566
California	$77,221	$100,161	$113,553	$135,505
Colorado	$85,685	$106,690	$127,495	$149,566
Connecticut	$82,141	$103,501	$131,022	$155,834
Delaware	$67,733	$92,445	$108,420	$128,854
District of Columbia	$83,202	$157,259	$157,259	$162,327
Florida	$68,085	$84,305	$95,039	$111,819
Georgia	$66,722	$82,787	$98,877	$120,315
Hawaii	$83,068	$103,479	$120,289	$138,536
Idaho	$71,531	$83,951	$95,859	$116,594
Illinois	$71,304	$91,526	$110,712	$134,366
Indiana	$62,808	$79,884	$93,175	$112,691
Iowa	$65,883	$86,523	$101,463	$122,826
Kansas	$67,423	$85,199	$101,189	$122,741
Kentucky	$60,071	$71,998	$83,027	$106,637
Louisiana	$57,923	$70,493	$82,433	$100,971
Maine	$73,946	$88,126	$104,083	$128,204
Maryland	$84,699	$111,673	$132,464	$161,913
Massachusetts	$85,941	$109,818	$135,837	$173,947
Michigan	$65,625	$81,293	$100,797	$119,856
Minnesota	$75,704	$95,807	$123,244	$146,039
Mississippi	$52,594	$68,525	$80,722	$94,965
Missouri	$63,306	$79,971	$97,658	$115,491
Montana	$69,482	$89,107	$100,637	$118,578
Nebraska	$65,206	$88,402	$100,754	$121,867
Nevada	$70,370	$85,660	$99,032	$111,184
New Hampshire	$85,049	$106,521	$137,902	$151,224
New Jersey	$84,938	$104,136	$133,620	$163,817
New Mexico	$64,537	$77,534	$85,784	$96,074
New York	$71,393	$90,520	$112,616	$135,475
North Carolina	$65,396	$82,221	$98,932	$113,744
North Dakota	$71,663	$93,882	$103,951	$134,284
Ohio	$64,541	$81,578	$99,876	$120,531
Oklahoma	$59,611	$75,229	$84,618	$99,188
Oregon	$77,061	$91,268	$113,736	$136,434
Pennsylvania	$70,378	$85,290	$107,327	$132,379
Rhode Island	$75,662	$96,205	$116,357	$133,954
South Carolina	$63,146	$81,614	$93,219	$113,332
South Dakota	$67,416	$87,506	$98,297	$127,386
Tennessee	$62,339	$80,722	$95,011	$106,775
Texas	$65,123	$84,491	$96,728	$114,938
Utah	$85,644	$93,302	$109,860	$128,363
Vermont	$70,603	$94,477	$111,150	$134,056
Virginia	$76,479	$98,577	$120,001	$141,113
Washington	$86,314	$104,354	$128,360	$152,553
West Virginia	$62,270	$66,833	$89,690	$91,270
Wisconsin	$69,343	$87,938	$105,734	$129,964
Wyoming	$69,906	$89,156	$95,951	$107,469
* Add $11,100 for each individual in excess of 4.

COMMONWEALTH OR U.S. TERRITORY		FAMILY SIZE
	1 EARNER	2 PEOPLE	3 PEOPLE	4 PEOPLE *
Guam	$52,478	$62,748	$71,504	$86,528
Northern Mariana Islands	$35,241	$35,241	$41,001	$60,304
Puerto Rico	$29,879	$29,879	$39,925	$49,247
Virgin Islands	$41,638	$50,043	$53,356	$58,457

As an attorney practicing in consumer bankruptcy, I can’t stress enough the importance of utilizing the correct, current data in your Means Test analysis.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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