Bankruptcy Means Test Calculator

Check disposable income against a means test threshold for bankruptcy eligibility.

About Bankruptcy Means Test Calculator

The means test runs in two stages: household income against the regional median, and if above it, disposable income after allowable expenses. Allowable expenses are set by standardised schedules rather than by actual spending. Because allowable expenses are standardised rather than actual, the test can produce a result quite different from what a household experiences as affordable.

Formula

Bankruptcy Means Test

Disposable income = income − allowable expenses − secured debt payments

median income test: First stage; income below the median generally passes outright
disposable income test: Second stage, applied when income exceeds the median

Worked example

With the default values below, Bankruptcy Means Test Calculator returns Monthly Disposable Income of -$400.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly household incomeminimum 0: 4,200
Household sizeminimum 1: 3
Median income for that household sizeminimum 0: 5,200
Allowable monthly expensesminimum 0: 3,400
Monthly secured debt paymentsminimum 0: 1,200

Results

Monthly Disposable Income: -$400.00
Below the Median Income: Yes
Disposable Income Over 60 Months: $0.00
Income Against the Median: 80.77%
Likely Outcome: Below the median — liquidation bankruptcy is generally available

Step by step

1Values used
2Bankruptcy Means Test
3Monthly Disposable Income= -400.00
4Below the Median Income= Yes
5Disposable Income Over 60 Months= 0.00
6Income Against the Median= 80.77
7Likely Outcome= Below the median — liquidation bankruptcy is generally available

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is a general illustrative estimate and is not legal advice. Laws, formulas and guidelines vary substantially by jurisdiction and change over time, and courts retain discretion. Consult a qualified lawyer in your jurisdiction before relying on any figure here.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

This is a general illustrative estimate and is not legal advice. Laws, formulas and guidelines vary substantially by jurisdiction and change over time, and courts retain discretion. Consult a qualified lawyer in your jurisdiction before relying on any figure here.

Frequently Asked Questions

How is Bankruptcy Means Test calculated?

Disposable income = income − allowable expenses − secured debt payments The means test runs in two stages: household income against the regional median, and if above it, disposable income after allowable expenses. Allowable expenses are set by standardised schedules rather than by actual spending.

Why does Bankruptcy Means Test matter?

Because allowable expenses are standardised rather than actual, the test can produce a result quite different from what a household experiences as affordable.

What values do I need to enter?

This calculator takes 5 inputs: Monthly household income, Household size, Median income for that household size, Allowable monthly expenses, Monthly secured debt payments. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.