Chapter 7 bankruptcy offers many advantages as a means of debt relief through debt discharge. But first, you have to qualify to use it, and that means passing the means test.
If you want to know if you qualify for Chapter 7 bankruptcy, please call Stone Rose Law at (480) 630-2765 to get a free consultation with a Washington bankruptcy lawyer.
The means test is a way to make sure that Chapter 7 bankruptcy is reserved for people who really cannot afford to pay their debts. The means test has been part of the Chapter 7 bankruptcy calculation since its introduction in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The means test prevents people who have the income to pay their debts from abusing Chapter 7 to take advantage of creditors.
The Chapter 7 means test applies to individuals who have primarily consumer debts, not business debts.
The Chapter 7 bankruptcy means test in Washington is a multi-step process.
In the first part of the means test, you compare your household’s current monthly gross income (before taxes and deductions) to the median gross income limit for a household of the same size in Washington state.
To begin, add up your gross income for the last six months, then divide by 6 to get your average monthly income, and then multiply that number by 12 to get your annualized gross income.
Income for the means test is determined under Bankruptcy Code §101(10A) and Official Form 122A-1. Some income sources, like certain disability and federal benefits, may be excluded or partially excluded even if counted on Schedule I.
Not all income is included in the means test. Examples of income sources you may exclude are:
For bankruptcy purposes, your household includes individuals financially connected within a single dwelling. This means your immediate family, dependents, and anyone who relies on or contributes to the household’s resources.Usually, your household size is easy to determine. Sometimes it may be more complicated to determine, such as when children reside with you part-time or you have adult children living in the residence. A Washington bankruptcy lawyer can help you determine if these family members are part of the household.
Take your monthly average gross income above and multiply it by 12. This is your median household annual gross income.
The means test relies on data provided by the U.S. Census Bureau. This data is updated approximately every six months. As of November 1, 2025, Washington state’s median income levels are:
| Household Size | Median Annual Income Limit |
| 1 | $86,314 |
| 2 | $104,354 |
| 3 | $128,360 |
| 4 | $152,553 |
For each additional household member beyond the first four, add $11,100. So, for example, for a household with five members, the annual Washington median income for the period beginning November 1, 2025, is $163,653.
If your median income is below the state median, you are not subject to a presumption of abuse and generally do not complete Official Form 122A-2. However, you do complete Official Form 122A-1 and still report income.
Some people do not need to take the Chapter 7 bankruptcy means test:
If your annual household income exceeds the Washington median income level, you may still qualify for Chapter 7 bankruptcy if your monthly expenses are high enough to reduce your disposable income to less than the threshold amount.
You will need to complete three forms as part of the means test:
The means test can be complex. It is necessary to determine your disposable income using a formula, deduct allowed expenses, and then multiply by 60 months. You must provide information based on national, Washington, and local averages and standards based on Census Bureau and the Internal Revenue Service data, including:
We recommend having an experienced Washington bankruptcy attorney assist you with your means test forms to ensure they are completed accurately.
Once you have gathered all the required information, you subtract all your allowed expenses for Washington from your income to determine how much income you would have available to pay your unsecured creditors in a Chapter 13 debt repayment plan. Under 11 U.S.C. §707(b)(2), if your allowed disposable income multiplied by 60 months exceeds the applicable threshold in the statute, then a presumption of abuse arises.
Note that even if you pass the means test, sometimes the bankruptcy trustee may seek to dismiss your Chapter petition based on “totality of the circumstances” considerations.
If you do not pass the Chapter 7 bankruptcy means test, you may have other bankruptcy options like a Chapter 13 bankruptcy payment plan or other debt relief options like credit counseling, debt settlement, a debt management plan, or debt payoff planning.
If you qualify, Chapter 7 bankruptcy can eliminate many of your unsecured debts and some of your secured debts through discharge. As long as you are below the income limit for the Chapter 7 means test, then filing for Chapter 7 can be straightforward. But if you make enough income to have to take the means test, then its plethora of forms and income and expense calculations can be hard to navigate.
At Stone Rose Law, our Washington bankruptcy attorneys have the knowledge and experience to go over your financial affairs to see if Chapter 7 is your best option, and to help you file in federal bankruptcy court if it is. Call us at (480) 630-2765 or use our online contact form to schedule a free initial consultation with one of our experienced bankruptcy lawyers.
