DC Chapter 7 Means Test: What the Numbers Actually Mean in 2026

The means test is the central gateway to Chapter 7 bankruptcy in Washington, DC. It determines whether you qualify for a discharge of your unsecured debts — credit cards, medical bills, personal loans — without repaying them over a three-to-five year plan. Whether you pass or fail comes down to a single comparison: your average monthly income against DC's official median income for your household size.

Here is what the means test actually measures, what the 2026 numbers look like for DC, and what happens if your income falls above the line.

The 2026 DOJ Median Income Figures for DC

The U.S. Department of Justice updates median income figures annually for use in bankruptcy cases. For cases filed in 2026, the applicable DC medians are:

These figures are not income limits. They are the threshold that determines which track of the means test you follow — and whether any further calculation is needed at all.

What "Current Monthly Income" Actually Means

The means test does not use your current paycheck or your most recent tax return. It uses a defined term: Current Monthly Income (CMI), defined under 11 U.S.C. § 101(10A) as the average monthly income from all sources received during the six full calendar months immediately before the filing date.

CMI includes:

• Wages, salary, tips, bonuses, and overtime
• Net monthly income from a business, profession, or farm
• Rental income (net of ordinary and necessary expenses)
• Regular contributions from others toward household expenses
• Interest, dividends, and pension distributions
• Unemployment compensation

CMI explicitly excludes Social Security benefits by statute — a critical point for retirees and disabled individuals who receive Social Security. That income does not count against you in the means test.

After calculating monthly CMI, the figure is annualized — multiplied by 12 — and compared to the DC median for your household size.

Part 1: The Below-Median Path

If your annualized CMI is at or below the DC median for your household size, you pass Part 1 of the means test automatically. There is no presumption of abuse under 11 U.S.C. § 707(b), and you may proceed to file Chapter 7.

For a single person in DC, that threshold in 2026 is $83,995. For a family of four, it is $157,259. If your income falls below the applicable number, the analysis stops here.

Part 2: The Above-Median Calculation

If your annualized CMI exceeds the DC median, you proceed to Part 2 of the means test under 11 U.S.C. § 707(b)(2). This section deducts IRS-approved expense allowances from your monthly income to calculate your "monthly disposable income."

The deductions fall into several categories:

• IRS National Standards — fixed monthly allowances for food, clothing, housekeeping, and personal care based on household size
• IRS Local Standards for Housing and Utilities — DC's elevated cost of living produces higher local standards than most jurisdictions
• IRS Local Standards for Transportation — ownership costs and operating costs
• Actual expenses for certain categories including healthcare, child care, secured debt payments, and priority debt payments

After all deductions, the remaining figure is your monthly disposable income. If it is below $166 per month, there is no presumption of abuse — and you may still file Chapter 7 even though your gross income exceeds the median.

What Happens When You're Above the Median

Above-median filers face three possible outcomes from Part 2:

• Pass: Allowable expenses reduce disposable income below the threshold. You proceed to Chapter 7.
• Borderline: Disposable income is close to the threshold. Attorney analysis of every available deduction — and whether certain actual expenses qualify — can determine the outcome.
• Chapter 13: Disposable income clearly exceeds the threshold. Chapter 13 becomes the appropriate path — a supervised repayment plan that pays creditors what you can actually afford over three to five years.

It is worth noting that a failed means test does not mean you cannot get bankruptcy relief. It means you get a different kind of relief — one that is often still favorable.

Why the Timing of Filing Matters

The CMI calculation looks backward six months. If you recently lost your job, took a significant pay cut, or left a high-income position, your trailing six-month average may be much higher than your current income. In those cases, waiting until the high-income period falls outside the lookback window can meaningfully change your result.

Conversely, a person expecting a significant raise or bonus in the coming months may benefit from filing before those amounts appear in the trailing six-month window.

Timing the filing to optimize the means test result is a legitimate and frequently overlooked strategy. It requires knowing exactly which months are included in the calculation — and planning the filing date accordingly.

What the Means Test Doesn't Capture

The means test is a mechanical calculation. It does not capture the full picture of whether Chapter 7 or Chapter 13 is the better choice for a given situation. Factors including the value of your assets, your exemption choices, whether you have a home to protect, the nature of your debts (dischargeable versus non-dischargeable), and your income trajectory all influence the right strategy.

Use the free bankruptcy calculator on the main page for an instant estimate based on 2026 DOJ median figures. For a complete analysis — including the Part 2 expense deductions — schedule a free consultation.