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Quick answer:
For cases filed on or after April 1, 2026, the Alaska Chapter 7 income limit starts at $85,817 for a household of 1 and increases based on household size.
If your household income is below the Alaska median, you may usually pass the first part of the Chapter 7 means test.
If your income is above the limit, you may still qualify after applying allowed expenses and deductions.
There are three US bankruptcy forms used to estimate qualification. The calculator below is based on the Chapter 7 Statement of Your Monthly Income form and helps estimate both:
The Alaska bankruptcy income limits are based on median household income and updated periodically.
Below is the income limits for cases filed on or after April 1, 2026. If your income is below your household size threshold, you may often pass the first step of the means test.
| # of People | Annual Income |
|---|---|
| 1 | $85,817 |
| 2 | $112,548 |
| 3 | $112,548 |
| 4 | $142,136 |
| 5 | $153,236 |
| 6 | $164,336 |
| 7 | $175,436 |
| 8 | $186,536 |
| 9 | $197,636 |
According to the United States Trustees' office, the means test is a standardized bankruptcy form that you complete to file for bankruptcy.
You can think of it as an income test.
The bankruptcy forms calculate your average monthly income. It then annualizes that figure to calculate your average annual income.
Here are some important things to note about the bankruptcy means test:
You may have taken the calculator above, and your income is above the household income level for Alaska. If so, you may still qualify based on the next two means test forms: 1. Statement of Exemption from Presumption of Abuse Under §707(b)(2) and 2. Chapter 7 Means Test Calculation. The second portion of the means test allows you to deduct allowable monthly expenses from your current monthly income (CMI) to calculate your disposable income. The expenses used are a combination of national and Alaska expenses.
As a note, disposable income is the income available after expenses that may be used to repay your debts. If your disposable income is below a specific amount, you may still qualify for a Chapter 7 bankruptcy.
The Alaska above-median bankruptcy means test calculator below uses both forms to help you determine allowable expenses to estimate Chapter 7 qualification.
Here are certain expenses that you may deduct from actual expenses on the second part of the bankruptcy means test.
You may also deduct other expenses for special circumstances. The expenses below are limited and based on the number of individuals in your household. You can refer to the current national standards for the maximum amounts allowed for the following expenses.
If you fail the bankruptcy means test, you still have options.
For example, you can consider a Chapter 13 bankruptcy in Alaska. You may also consider bankruptcy alternatives such as debt settlement, debt management or debt payoff planning.
A Chapter 13 bankruptcy in Alaska is known as a repayment plan. In many cases, you will pay back a portion of your unsecured debts in a payment plan. You are often able to keep your assets, and there’s no qualification as long as you are under the debt limits. It’s also on your credit report for 7 years, instead of 10. It can take 36 or 60 months. If you are in a 100% Chapter 13, your payment plan may be shorter.
If bankruptcy is not the right fit, there are alternatives.
Debt settlement is also known as debt relief when a company or you negotiate to lower your debt balance to less than what you originally owe. That way, a portion of what you were supposed to pay back will be forgiven. For example, if you owe in debt $50,000, debt settlement is able to negotiate the amount down to $25,000. The debt settlement program is often a payment plan lasting 12 to 60 months.
Debt management (also known as credit counseling) is when a company negotiates to lower the interest rate of your debt. For example, if you owe a blended interest rate of 22%, a debt management company may be able to negotiate it down to 9%. Many debt management companies are non-profits and will work with credit cards, but may not work with unsecured personal loans. The debt management program is often a payment plan that could be between 36 and 60 months. Many debt management firms are also national firms, so you do not necessarily need to find one local in Alaska.
Ascend helps compare these options side-by-side so you can choose based on your situation, not what a company is trying to sell.
You should use the calculator if:
If your income is below the median, the process is usually straightforward. If it is above, the calculator helps estimate deductions and next steps.
The Alaska Chapter 7 income limit determines whether you pass the first part of the bankruptcy means test.
Here are the most important points:
Many people wait too long to explore their options. Based on Ascend’s experience, understanding your qualification early can significantly expand your choices.
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