Chapter 7 Means Test in Massachusetts: How Much Can You Make and Still Qualify?

Most people think there is a magic income number that decides whether you can file Chapter 7.

There isn’t.

That single misunderstanding stops a lot of people from ever picking up the phone. They earn a decent paycheck, they punched their salary into some free calculator at midnight, and it spit back a number that felt like a locked door. So they decided they were stuck. Too much money for help, not enough money to actually dig out.

If that sounds familiar, here is the part nobody told you: earning above your state’s median income does not automatically disqualify you from Chapter 7. Being over the line does not end the test. It just moves you to the second page. And a lot of people pass on the second page.

Let’s walk through how it actually works.

There Is No Single Income Cutoff

The thing people call the “Chapter 7 income limit” is really a test with two parts. Not one gate. Two.

The first part compares your income to a median. The second part looks at what you actually have left over after your real obligations. You only reach the second part if you are over the median, and the second part is where a surprising number of higher earners still qualify.

So when someone asks “is my income too high,” the honest answer is usually: it depends on the second page, and you cannot see the second page from a salary number alone.

Part One: The Median Comparison

Here is the first calculation, in plain English.

You take your income from the last six full calendar months before you file. You average it, then double it to get an annual figure. Then you compare that number to the Massachusetts median income for a household your size.

Land below the median, and you generally pass this part and stop. You are done. Chapter 7 is on the table.

Land above it, and you are not disqualified. You just move to the second part.

For cases filed on or after April 1, 2026, these are the Massachusetts median figures the court uses:

For households larger than four, add $11,100 for each additional person.

Two things worth knowing about that table. First, these numbers change. The U.S. Trustee Program updates them roughly every April and November, so the figure that applies to you is the one in effect on the day you file, not the one you saw last year. Second, notice this is about household size, not just your salary. A single earner and a family of four are measured against very different lines.

The Six-Month Window Matters More Than You’d Think

Here is a detail that trips people up.

The test does not look at last year’s tax return, and it does not look at your most recent paycheck. It looks at the six full calendar months right before the month you file. File in March, and the test looks at September through February.

Why does that matter? Because life moves. Say you lost a chunk of overtime two months ago, or a seasonal bonus dropped out of your income, or a second job ended. The person you are on paper today might look very different from the person you’ll be after a couple more months roll through that six-month window.

That timing is not something a calculator understands. Knowing when to file, and when waiting might change the math, is exactly the kind of judgment call that generally benefits from a real conversation with an attorney rather than a late-night web tool.

Part Two: Where Higher Earners Still Qualify

If you are over the median, you reach the second calculation. This is the one that decides the question for most higher-income filers, and it is the one the free calculators handle worst.

The second part subtracts allowed monthly expenses from your monthly income to find what is called your disposable income. If what is left is low enough, Chapter 7 generally remains available to you.

Now, here is the counterintuitive piece. Those allowed expenses are not simply your actual budget. Many of the figures come from IRS national and local standards, not from your own receipts. Some categories do use your real costs, like a mortgage or certain secured payments. Some situations allow additional deductions. But you cannot just add up what you feel like you spend and get the answer.

That is why a real mortgage, childcare, or health costs can pull an over-median filer’s disposable income right back down below the line. It happens all the time. Being above the median simply is not the same thing as being disqualified.

What Else Can Change the Answer

A few other factors can move this analysis one way or the other:

• Household size, which sets your median threshold and several of the expense standards
• Recent income changes, like a lost bonus or reduced overtime that falls inside the six-month window
• Whether your debts are mostly consumer or mostly business, which can change how the test applies to you
• Large secured payments, such as a mortgage or car loan, that reduce your disposable income
• Special-circumstances deductions, which may be available but generally require documentation

None of these are things you want to guess at. Each one can be the difference between passing and not.

If Chapter 7 Really Is Off the Table

Let’s say you run the full test and Chapter 7 genuinely is not available. That is not a dead end.

In most cases, Chapter 13 remains an option. It works differently: instead of a relatively quick discharge, you follow a court-approved repayment plan, usually lasting three to five years, and a discharge can still come at the end. Chapter 13 can also do things Chapter 7 simply cannot, like helping a homeowner catch up on past-due mortgage payments over time.

So even a “no” on Chapter 7 is really a “let’s look at the other door.” The goal was never a particular chapter. The goal is the outcome that actually fits your situation.

The One Thing to Do Before You Decide

If there is a single takeaway here, it is this: do not let a salary number and a free calculator make this decision for you.

The real means test runs on current median figures, IRS expense standards, and official bankruptcy forms, and it turns on details that a quick online estimate cannot see. Being over the median moves you to the second page. It does not close the book.

Before you assume you earn too much to qualify, have the actual means-test calculation completed by someone who does them. You may find a door you did not know was open.

Frequently Asked Questions

Attorney Michael Goldstein is a debt relief agency. He helps people file for bankruptcy relief under the Bankruptcy Code. This article is general legal information, not legal advice, and does not create an attorney-client relationship. Bankruptcy outcomes depend on your specific facts and applicable law. Past results do not guarantee future results. Income figures and filing fees change periodically and should be confirmed against current law before you rely on them.