North Dakota Bankruptcy Means Test Figures for 2026

If you are considering filing for Chapter 7 bankruptcy in North Dakota, your first step is completing the Means Test, which averages your income over the previous six months and compares it to the state’s median income. Passing the Means Test is required to file under Chapter 7, but it does not by itself determine whether Chapter 7 is the best option for your financial situation.

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

Key Takeaways on the North Dakota Means Test

• The Means Test: Determines eligibility for Chapter 7 bankruptcy based on household income and allowable expenses.
• Income Calculation (CMI): “Current Monthly Income” is the average of all income received in the six calendar months before filing.
• Timing is Critical: One month of higher-than-normal income could affect the CMI average. Strategically delaying your filing date to exclude those high‑income months helps qualify debtors for Chapter 7.
• Rebutting the Presumption of Abuse: Failing the Means Test creates a presumption of abuse under §707(b), requiring debtors to complete a more detailed second‑stage analysis to determine whether they can still qualify for Chapter 7.
• Beyond the Means Test: Passing the Means Test is only a part of determining a debtor’s options, as an analysis of non‑exempt assets and disposable income is required.
• The Chapter 13 Option: Even if you qualify for Chapter 7, Chapter 13 can still be the better choice, especially to catch up on missed mortgage payments and auto loans.

The Means Test Process

A debtor’s Means Test calculation proceeds in one or two stages, depending on whether their income initially exceeds the state median. Step 1 requires completing Official Form 122A‑1, which calculates your Current Monthly Income (CMI) under 11 U.S.C. § 101(10A) by averaging all income received during the six calendar months before filing. That six‑month average is then annualized and compared to the North Dakota median income for your household size.

If your annualized income is at or below the state median, you pass Step 1, and no further Means Test calculations are required. However, passing Step 1 does not automatically make Chapter 7 the best option. You must still evaluate the value of your non‑exempt assets, and compare your actual income and expenses for the month of filing by completing Schedule I (Income) and Schedule J (Expenses) to determine your disposable income.

If your income exceeds the state median, you must proceed to Step 2 and complete Official Form 122A‑2, which applies IRS‑approved expense deductions to determine whether a presumption of abuse arises under §707(b).

Below are the North Dakota median income figures for 2026.

Household Size	Annual Median Income	Monthly Median Income
1 Person	$73,549	$6,129.08
2 Persons	$96,352	$8,029.33
3 Persons	$106,686	$8,890.50
4 Persons	$137,817	$11,484.75

For households larger than four, add $11,100 per additional person. (Figures effective April 1, 2026 — subject to semiannual updates.)

Part 2 of the Means Test: Exceeding the State Median

If your income exceeds the median income for North Dakota, then the second part of the Means Test requires completing Official Form 122A‑2, which applies IRS‑approved expense deductions to reduce your “disposable income.” These deductions include housing, transportation, and secured debt payments such as car loans and mortgages, often allowing above‑median filers to qualify.

The same scenario applies as to part one of the Means Test. An exemption analysis of your assets is required, as well as comparing Schedule I to J. In addition, if you are behind on secured debt payments such as your car or mortgage, Chapter 7 does not offer a path to catch up on the arrears; only Chapter 13 does. This is critical because I’ve experienced self-represented parties filing Chapter 7 and then risk losing their car or home.

Chapter 13 can also potentially reduce your car loan balance through a process known as the cramdown, or remove or lower second mortgages or HELOCs by lien stripping. These options are not available in Chapter 7.

The Importance of Timing

The timing of your bankruptcy petition is critical. A one‑time bonus, a month with more-than-average income because of overtime, or a month with an extra pay period could push a borderline case from Chapter 7 to Chapter 13 because the Means Test median income has increased artificially.

In those situations, filing should be delayed until that month is no longer counted as part of the six-month lookback period, so that income stabilizes and returns to normal.

Conclusion: The North Dakota Means Test

Passing the North Dakota Means Test is essential, but it is rarely the final word on Chapter 7 eligibility. A complete evaluation requires reviewing your non‑exempt assets, calculating your disposable income, and considering how secured debts such as mortgages and vehicle loans will be treated.

Educational Resources

• For Institutions: Colleges and universities may request examination copies of my textbook directly from Routledge Publishing.
• For Students & Practitioners: Single print and digital copies are available via Amazon Books.
• Video Lectures: Stream comprehensive legal breakdowns and video explanations on the Bankruptcy.blog YouTube Channel.

Bankruptcy Court & Consumer Resources

Explore additional consumer guides and state-specific directories to navigate your legal options:

• A step-by-step master guide to completing and understanding the bankruptcy petition.
• Bankruptcy Court Directory: Full listings for the federal bankruptcy court system and trustee contact information.
• State Bankruptcy Exemptions: Review your state‑specific exemptions or compare them with the federal exemptions.
• 341 Meeting Procedures: Prepare for your court date with updated rules, expectations, and practical guidance.

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Bankruptcy Code References

• 11 U.S. Code §101 – Definitions.
• Official Form 122A: Chapter 7 Statement of Your Current Monthly Income.
• Official Form 122A-2: Chapter 7 Means Test Calculation.
• 11 U.S. Code §707 – Dismissal of a case or conversion to a case under chapter 11 or 13.