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If you're considering filing bankruptcy in Maryland, a common initial question is:
“Do I qualify for Chapter 7 based on my income?”
That’s where the means testing comes in.
In Maryland, your income determines:
There are three US bankruptcy forms to estimate qualification. The first Maryland bankruptcy means test calculator below is based on the Chapter 7 Statement of Your Monthly Income form.
Before diving into the details, you can estimate your qualification now:
Estimate in 2–5 minutes:
The calculator below also estimates the cost of filing bankruptcy in Maryland with an attorney, which is an important consideration.
The means test is a standardized calculation required by the United States Trustees' office.
It determines whether your income is low enough to qualify for Chapter 7.
There are two main ways to qualify:
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:
Below are the household income levels for Maryland for bankruptcy cases filed on or after April 1, 2026. The figures change every 6 months or so. If your household size is greater than 9, you would add $11,100 for each additional family member.
| # of People | Annual Income |
|---|---|
| 1 | $86,928 |
| 2 | $114,611 |
| 3 | $135,949 |
| 4 | $166,173 |
| 5 | $177,273 |
| 6 | $188,373 |
| 7 | $199,473 |
| 8 | $210,573 |
| 9 | $221,673 |
You may have taken the calculator above, and your income is above the household income level for Maryland. 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 Maryland 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 Maryland 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 Maryland. You may also consider bankruptcy alternatives such as debt settlement, debt management or debt payoff planning.
A Chapter 13 bankruptcy in Maryland is known as a wage earner’s 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.
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 Maryland.
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