Chapter 7 Qualification Calculator

Filing for Chapter 7 bankruptcy can give you a fresh start—but not everyone qualifies. Our Chapter 7 Qualification Calculator is a quick tool to help you get an estimate of your eligibility. This article will show you how to use the calculator, what each field means and a brief overview of Chapter 7 bankruptcy qualification requirements.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows you to discharge most unsecured debts, such as credit card balances, personal loans and medical bills. In exchange, some of your non-exempt assets may be sold to pay creditors. But many people are able to keep most or all of their assets thanks to bankruptcy exemptions.

To file under Chapter 7, you must first pass a means test. This test is designed to make sure Chapter 7 is only for those who can’t afford to pay their debts.

Using the Chapter 7 Qualification Calculator

Our calculator will give you an idea of whether you might qualify for Chapter 7 based on the information you provide. Here’s a breakdown of each section:

📍 State of Residence

Your state determines the median income threshold used in the means test. Median income levels vary by state and household size. The calculator uses a placeholder value but an attorney can give you the exact thresholds based on the latest figures.

👨‍👩‍👧 Household Size

Include yourself, your spouse (if filing jointly) and any dependents. This number affects the state’s median income used in the means test.

💵 Current Monthly Income

Enter your gross income (before taxes) for the current month. This helps evaluate your ability to pay debts.

📅 Average Monthly Income (Last 6 Months)

The means test compares your average income over the last 6 months to the median income in your state. If your average is below the median you typically qualify for Chapter 7.

🧾 Total Monthly Expenses

List your necessary living expenses, including rent, utilities, food, insurance and transportation. These expenses help calculate your disposable income—a key factor in the means test.

🔒 Secured Debts

These are debts tied to collateral, such as mortgages or car loans. Not part of the means test but helps you understand your overall financial situation.### 💳 Unsecured Debts

Include credit card debt, medical bills and personal loans. Chapter 7 wipes out most of these debts.

🏠 Total Assets

Enter the value of your assets, such as bank accounts, cars, real estate and personal property. This helps determine if any assets are at risk in a Chapter 7 case.

🏛️ Priority Debts

These are taxes, child support and alimony—debts that aren’t discharged in bankruptcy and often must be paid before others.

Results

Once you hit “Calculate” the calculator will show you:

• Eligibility Status – Based on your income compared to your state’s median, this is a general estimate of whether you qualify.
• Median Income Comparison – If your average income is above or below your state’s threshold.
• Disposable Income – If you have too much disposable income you may not qualify.
• Debt Overview – How much unsecured debt do you have and is it enough to consider Chapter 7?
• Asset Evaluation – High-value assets may not be exempt and could be sold to pay creditors.
• Exemption Eligibility – A rough idea of whether your assets are protected under exemption rules.
• Priority Debt Summary – Debts that remain after bankruptcy.

Important Note

This calculator is a preliminary tool. It doesn’t guarantee qualification and doesn’t account for every factor in the official bankruptcy means test or state-specific exemptions. For a full legal evaluation speak with a bankruptcy attorney who can review your full financial profile.

Conclusion

Chapter 7 bankruptcy may be the solution for you if you’re overwhelmed by debt and meet the income requirements. Our calculator is a starting point to help you assess your situation—but the next step is speaking with a qualified bankruptcy lawyer who can guide you through the process and protect your rights.

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