New York Bankruptcy Means Test and Chapter 7 Income Limits
You may qualify for Chapter 7 bankruptcy in New York by having income below the applicable median for your household size or, when your income is above the median, by completing the additional means-test calculation.
The calculators and tables below can help you estimate qualification, but only a bankruptcy attorney can evaluate how the rules apply to your specific case.
New York Chapter 7 Means Test Calculator
The first stage of the Chapter 7 means test is reported on Official Form 122A-1, Chapter 7 Statement of Your Current Monthly Income .
The calculator also estimates typical bankruptcy costs in New York and compares potential debt-relief options.
New York Income-Limit Means Test Calculator
Enter your household size, income and financial information to estimate whether you may be below New York’s median-income threshold.
Calculator results are estimates and do not determine legal eligibility.
How the New York Means Test Works
Compare Income With the State Median
Calculate current monthly income using the six full calendar months before filing, then annualize that amount and compare it with the New York figure for your household size.
Apply Allowable Deductions
If your income exceeds the median, complete Official Form 122A-2 to calculate disposable income using permitted expenses and deductions.
Which months are used?
The calculation generally uses the six full calendar months before the bankruptcy filing month. For example, a September 15 filing generally uses income received from March 1 through August 31.
When income varies, use Ascend’s average monthly income calculator .
New York Chapter 7 Income Limits for 2026
These median-family-income figures apply to cases filed on or after April 1, 2026. For households larger than four, add $11,100 per additional person.
| Household Size | Annual Median Income |
|---|---|
| 1 | $73,272 |
| 2 | $92,902 |
| 3 | $115,579 |
| 4 | $139,040 |
| 5 | $150,140 |
| 6 | $161,240 |
| 7 | $172,340 |
| 8 | $183,440 |
| 9 | $194,540 |
Review the current U.S. Trustee Program median-income table before relying on these figures because filing-date data can change.
What Income Is Used in the New York Means Test?
Current monthly income is broader than wages. It may include regular amounts received by the debtor or paid by another person toward household expenses.
Income Commonly Included
- Salary, wages and overtime
- Net business or self-employment income
- Net rental income
- Spousal income and household contributions
- Interest, dividends and royalties
- Pension, retirement and annuity income
- Unemployment and workers’ compensation
- Child support and alimony received
Income That May Be Excluded
- Social Security Act benefits
- Certain qualifying military-related payments
- Certain war-crime-victim payments
- Certain payments connected with a national emergency
Review Ascend’s guide to income included and excluded from the means test .
How Is Household Size Determined?
Household size is not always determined by simply counting everyone who lives at the address. Courts may consider tax dependents, financial support, household relationships and the facts of the case.
Questions can arise involving roommates, children attending college, unmarried partners, shared custody and adult dependents. New York has four bankruptcy districts, and legal interpretations may not always be identical.
Read Ascend’s guide to determining household size for the bankruptcy means test .
What If Your Income Is Above the New York Limit?
Some people may instead qualify for an exemption from the presumption-of- abuse calculation using Official Form 122A-1Supp .
New York Above-Median Means Test Calculator
Estimate how allowable expenses may affect Chapter 7 qualification. New IRS expense standards apply to cases filed on or after July 15, 2026.
Examples of Potential Deductions
- Income and payroll taxes
- Mandatory employment deductions
- Health and disability insurance
- Term life-insurance premiums
- Childcare expenses
- Court-ordered support payments
- Qualifying secured-debt payments
- Certain charitable contributions
- Food, clothing and household supplies
- Housing and utility standards
- Transportation standards
- Out-of-pocket healthcare standards
Review the current U.S. Trustee Program means-testing data for cases filed on or after July 15, 2026 .
What Happens If You Do Not Pass the Means Test?
A calculator result indicating that Chapter 7 may not be available does not mean you have no options. It also does not necessarily establish that you legally fail the means test.
| Option | How It Generally Works | Important Limitation |
|---|---|---|
| Chapter 13 | Repays some or all qualifying debts through a court-supervised plan, generally lasting three or five years. | The plan payment must be affordable and may be influenced by income, assets, arrears and required claims. |
| Debt management | A credit-counseling agency may seek reduced interest rates and organize participating debts into one monthly payment. | It does not create an automatic stay or discharge debt. |
| Debt settlement | The consumer or a company attempts to settle eligible debts for less than the full balance. | Accounts often become delinquent, creditors may sue and fees or taxes may apply. |
| Direct payoff | The consumer repays balances using a structured payoff strategy. | This may be difficult when interest rates or minimum payments are already unaffordable. |
Estimate a possible Chapter 13 payment or use Ascend’s debt-relief options calculator to compare estimated payments, costs and timelines.
Frequently Asked Questions
Does income below the New York median guarantee Chapter 7?
No. Passing the median-income comparison generally prevents a presumption of abuse under that portion of the means test, but other eligibility, good-faith, income, asset and case-specific issues may still matter.
Does my spouse’s income count if only I file?
It often must be disclosed when spouses share a household, although the marital adjustment and circumstances such as legal separation may affect the calculation.
Do I use my current annual salary?
Not necessarily. The initial calculation generally uses qualifying income received during the six full calendar months before filing and converts that average into an annual figure.
Can I qualify if my income recently decreased?
Possibly. Because the calculation uses a rolling six-month period, older higher-income months may continue affecting the average until they leave the calculation period.
Can business debt affect whether the means test applies?
The statutory presumption-of-abuse means test generally concerns individuals whose debts are primarily consumer debts. Determining whether debts are primarily consumer or business debts can require legal analysis.
How often do New York income limits change?
The U.S. Trustee Program periodically publishes updated median-income and expense data. Always select the data set applicable to the actual filing date.
Estimate Your New York Chapter 7 Qualification
Start with the income-limit calculator. If your income is above the applicable median, continue to the above-median calculator and consider discussing the result with a New York bankruptcy attorney.
Median-income and expense figures depend on the bankruptcy filing date. Calculator results are estimates and do not constitute a legal determination of Chapter 7 eligibility. Ascend does not provide legal or financial advice.
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