Check disposable income against a means test threshold for bankruptcy eligibility.
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.
Bankruptcy Means Test
Disposable income = income − allowable expenses − secured debt payments
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.
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.
Because allowable expenses are standardised rather than actual, the test can produce a result quite different from what a household experiences as affordable.
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.