The Chapter 7 Means Test in Colorado
The Chapter 7 means test (11 U.S.C. § 707(b)) compares your income to the median income for your household size in Colorado. Below median you generally qualify for Chapter 7; above median, a disposable-income calculation may create a presumption of abuse. Colorado median-income figures are updated periodically by 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 is a detailed calculation that turns on your exact income and expenses — talk to a Colorado bankruptcy attorney.
The means test decides whether you qualify to file Chapter 7. It exists to make sure Chapter 7’s quick discharge goes to people who genuinely cannot repay (11 U.S.C. § 707(b)).
Step one: compare to the Colorado median
The first step compares your income to the median income for your household size in Colorado:
- Below the median — you generally qualify for Chapter 7.
- At or above the median — you move on to a second, more detailed calculation.
The Colorado median-income figures are updated periodically by the U.S. Trustee Program, so the numbers that apply depend on when you file (confirm current).
Step two: the disposable-income calculation
If you’re at or above median, the test looks at your disposable income after allowed expenses. Depending on the result, there may be a presumption of abuse — meaning Chapter 7 may not be available, and Chapter 13 repayment may be the path instead.
Why the numbers aren’t listed here
Median-income and expense standards change on a set schedule. Rather than risk quoting a stale figure, check the current U.S. Trustee figures or have an attorney run the test with up-to-date numbers.
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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 Colorado to decide whether you qualify for Chapter 7.
- What happens if I'm above the Colorado median?
- Being above median doesn't automatically disqualify you. A disposable-income calculation is applied, and depending on the result there may be a presumption of abuse that you'd need to overcome — or you may file Chapter 13 instead.
- Where do the Colorado median-income numbers come from?
- The U.S. Trustee Program publishes and periodically updates the median-income figures by household size. Because they change, this guide does not state specific dollar amounts — check the current U.S. Trustee figures (confirm current).
Sources
Related guides
- Chapter 13 Bankruptcy in Colorado Chapter 13 is a court-supervised repayment plan: 3 years if your income is below the state median, up to 5 years if at or above the median, and never longer than 5 years (11 U.S.C. § 1322(d), § 1325). It lets people cure a mortgage or car default and keep their property.
- Chapter 7 Bankruptcy in Colorado 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 the means test and credit counseling. Because Colorado's exemptions protect typical assets, most Colorado filers keep their property.
- Colorado Bankruptcy Exemptions Colorado opted out of the federal bankruptcy exemptions (C.R.S. § 13-54-107), so Colorado filers use Colorado exemptions. Key protections include a homestead up to $250,000 (or $350,000 if elderly or disabled), a motor vehicle up to $15,000 (or $25,000 if elderly or disabled), household goods, clothing, tools of the trade, and limits on wage garnishment. Several figures were raised in 2022; confirm current.
- The Automatic Stay & Discharge in Colorado 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 absent undue hardship, child support and alimony, and debts from fraud.