Can You Pass the Chapter 7 Means Test Even If You’re Above the Income Limit?

Many people assume that if their household income is above the bankruptcy limit, they automatically do not qualify for Chapter 7 bankruptcy. That’s a common misconception.

In reality, you can still pass the Chapter 7 means test even if your income is above the median household income. The means test has two parts, and thousands of people qualify for Chapter 7 every year despite earning more than the published income limits.

Here’s how it works.

What Is the Chapter 7 Means Test?

The Chapter 7 means test is designed to determine whether you have enough disposable income to repay creditors. It compares your income and expenses to see if Chapter 7 liquidation bankruptcy is appropriate.

The test has two steps:

1. Median income comparison

2. Disposable income analysis

Failing the first step does not mean you fail the means test.

Step One: Income vs. Median Household Income

The first step compares your gross household income to the median income for a household of your size in Florida.

• If your income is below the median, you usually qualify automatically.

• If your income is above the median, you move on to step two.

This is where many people think the process ends—but it doesn’t.

Step Two: Allowable Expenses Can Change Everything

If your income is above the limit, the means test allows you to deduct certain approved living expenses. These deductions often reduce your “disposable income” enough to qualify for Chapter 7.

Common allowable expenses include:

• Rent or mortgage payments

• Utilities

• Food and household supplies

• Transportation costs

• Car payments

• Health insurance

• Medical expenses

• Childcare costs

• Court-ordered support (child support or alimony)

• Taxes and payroll deductions

After these deductions, many people technically have little to no disposable income, even if their salary seems high on paper.

High Income Does Not Mean High Disposable Income

A frequent example is someone who earns a decent income but also has:

• High rent or mortgage payments

• Multiple car loans

• Family obligations

• Medical expenses

• Single-income household responsibilities

The means test looks at real financial pressure, not just salary.

This is especially common in Tampa and surrounding areas where housing and insurance costs have risen significantly.

Common Situations Where People Still Qualify

You may still pass the means test if you are above the income limit and:

• You are the only income earner in your household

• You support adult children or relatives

• You have significant vehicle or commuting expenses

• You have ongoing medical or prescription costs

• You recently experienced a job change or income drop

Timing matters. The means test looks at income over the last six months, not what you expect to earn in the future.

What Happens If You Truly Don’t Pass?

If the means test shows you have sufficient disposable income, Chapter 7 may not be available—but that does not mean you’re out of options.

Other possibilities may include:

• Chapter 13 bankruptcy

• Waiting and filing later if income decreases

• Adjusting household size or expense calculations

An experienced bankruptcy attorney can often identify issues that online calculators miss.

Why Online Calculators Are Often Wrong

Many online “means test calculators” oversimplify the process. They often:

• Ignore allowable deductions

• Miscalculate household size

• Fail to account for real expenses

• Overestimate disposable income

This leads people to wrongly assume they don’t qualify when they actually do.

Talk to a Tampa Chapter 7 Bankruptcy Attorney

If you’re worried that your income is too high for Chapter 7 bankruptcy, don’t rule yourself out without proper legal guidance.

At chapter7tampa.com, we regularly help clients who believed they were over the income limit successfully file Chapter 7 bankruptcy.

A proper means test analysis can make the difference between:

• Years of struggling with debt

• And a true financial fresh start

Schedule a Free Chapter 7 Evaluation

If you’re in Tampa or the surrounding areas and wondering whether you qualify for Chapter 7—even with above-median income—schedule a confidential consultation today.

You may be closer to qualifying than you think.