The Chapter 7 Means Test in California
The Chapter 7 means test (11 U.S.C. § 707(b)) compares your income to the median income for your household size in California. Below median, you generally qualify; above median, a disposable-income calculation may create a presumption of abuse. California's median figures update periodically via the U.S. Trustee.
By Find Local Law Editorial Team · Last reviewed: May 26, 2026
Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.
This is general information, not legal advice. The means test involves detailed calculations — talk to a California bankruptcy attorney.
The means test is the income check that decides whether you can file Chapter 7. It exists to steer higher-income filers toward a repayment plan instead of liquidation (11 U.S.C. § 707(b)).
Step one: compare to California’s median
The first step compares your income to the median income for your household size in California. If your income is below that median, you generally qualify for Chapter 7 and you’re done with the test.
These California median-income figures update periodically through the U.S. Trustee Program, and they vary by household size. Because they change, treat any specific dollar amount as something to confirm current before relying on it.
Step two: above median
If your income is at or above the median, you’re not automatically disqualified. A second, more detailed disposable-income calculation applies. Depending on the result, the law may presume your Chapter 7 filing is an abuse — but allowed deductions (like certain secured debt payments and living expenses) can still leave room to file.
If the means test pushes you out of Chapter 7, Chapter 13 is usually the alternative — and the same median figures set whether a Chapter 13 plan runs 3 or 5 years.
What the test doesn’t decide
Passing the means test doesn’t determine what property you keep — that’s set by California exemptions. And filing triggers the automatic stay regardless of which chapter you use.
To get matched with a local California bankruptcy attorney, connect with a lawyer.
Connect with a local attorney
Tell us about your situation and we'll match you with a local California attorney who handles matters like yours. Free, no obligation.
Start your free intakeFrequently asked questions
- What is the means test?
- It's a test under 11 U.S.C. § 707(b) that compares your income to the median income for your household size in California to decide whether you qualify for Chapter 7.
- What happens if my income is above California's median?
- You're not automatically disqualified. A second, disposable-income calculation may create a presumption of abuse — but deductions and your actual budget can still allow Chapter 7, or you may use Chapter 13 instead.
- Where do the median income numbers come from?
- The U.S. Trustee publishes California median-income figures by household size and updates them periodically. Because the numbers change, confirm the current figures rather than relying on an old chart.
Sources
Related guides
- Automatic Stay & Discharge in California Bankruptcy Filing bankruptcy triggers the automatic stay (11 U.S.C. § 362), an immediate halt to most collection — lawsuits, wage garnishment, repossession, and foreclosure. A discharge (11 U.S.C. § 524, § 727) permanently bars collecting discharged debts, but some debts are non-dischargeable (11 U.S.C. § 523), including most recent taxes, student loans, child support, alimony, and fraud debts.
- California Bankruptcy Exemptions California opted out of the federal bankruptcy exemptions, so filers cannot use the federal § 522(d) set. Instead California offers a choice between two state systems — you must pick one, not mix: the CCP § 704 series (with a large homestead under § 704.730) or the CCP § 703.140(b) bankruptcy-only set (with a wildcard at § 703.140(b)(5)).
- Chapter 13 Bankruptcy in California Chapter 13 is a repayment plan over 3 years (if you're below California's median income) or up to 5 years (at or above median); no plan exceeds 5 years (11 U.S.C. § 1322(d), § 1325). It lets people with regular income cure a mortgage or car default and keep their property.
- Chapter 7 Bankruptcy in California Chapter 7 is liquidation bankruptcy: a trustee can sell nonexempt property to pay creditors, and the individual debtor receives a discharge of most unsecured debts (11 U.S.C. § 727). It requires passing the means test and completing credit counseling. Most California filers keep their property using California's exemptions.