DC Chapter 7 Means Test Calculator, Find Out in 3 Minutes

Congress created the means test under 11 U.S.C. § 707(b) to determine who qualifies for Chapter 7 bankruptcy. The test is designed to ensure that Chapter 7 relief goes to people who genuinely cannot repay their debts. The test has two parts, and many DC filers pass on Part 1 alone.

Part 1: Income Comparison. The court compares your average gross monthly income over the six months before filing (called "current monthly income" or CMI) to the median household income for a household of your size in the District of Columbia. If your annualized CMI falls below the DC median, you automatically qualify for Chapter 7, no further analysis required.

Part 2: Expense Analysis. If your income exceeds the DC median for your household size, you are not automatically disqualified. Part 2 of the means test subtracts IRS-approved living expense allowances (housing, transportation, food, healthcare, and other categories) from your income to determine your "disposable income." If your disposable income after allowed expenses falls below a threshold amount, you still qualify for Chapter 7. Many DC filers with above-median incomes pass Part 2 because the District of Columbia has some of the highest allowable housing and transportation expenses in the country.

The means test calculation is technical and requires careful attention to the six-month lookback period, income averaging, and proper categorization of expenses. Attorney Fraser runs a complete means test analysis during every free consultation to determine whether you qualify before any fees are collected.