Virginia Bankruptcy Means Test — Do You Qualify for Chapter 7?

Quick Answer: To qualify for Chapter 7 bankruptcy in Virginia, your household income must be below the Virginia median for your family size — or you must pass a detailed expense calculation showing you lack disposable income to fund a Chapter 13 plan. The current Virginia median income thresholds (for cases filed on or after April 1, 2026) are: 1 person: $78,491 · 2 people: $101,171 · 3 people: $123,159 · 4 people: $144,826. Add $11,100 for each additional person.

What Is the Virginia Bankruptcy Means Test?

The bankruptcy means test is a federal formula — codified at 11 U.S.C. § 707(b) — that determines whether you qualify to file Chapter 7 bankruptcy. It is not a Virginia-specific rule; it is federal law that uses Virginia-specific income data published by the U.S. Trustee Program. The test exists to prevent high-income filers from using Chapter 7 when they have enough income to fund a Chapter 13 repayment plan.

The means test has two parts. Most filers only need to complete Part 1 — the income comparison. If your household income is below the Virginia median, you pass automatically and the presumption of abuse under § 707(b)(2) cannot arise. Only above-median filers need to complete Part 2, the full expense deduction calculation.

Virginia Median Income Thresholds — April 1, 2026

The U.S. Trustee Program updates Virginia median income figures twice a year. The following thresholds apply to cases filed on or after April 1, 2026. Source: U.S. Trustee Program, Dept. of Justice.

If your annual household income is below the number for your household size, you pass the means test and may file Chapter 7. These figures are updated approximately every six months — always verify current thresholds at justice.gov/ust/means-testing before filing.

How Is “Household Income” Calculated?

The means test uses your Current Monthly Income (CMI), defined under 11 U.S.C. § 101(10A) as the average monthly income received from all sources during the six calendar months before your filing date. CMI is then multiplied by 12 to produce your annualized figure for comparison against the Virginia median.

Key rules about what counts as income on the means test:

• Included: Wages, salary, tips, bonuses, self-employment income, rental income, regular contributions from others toward household expenses, alimony, and most other regular income sources
• Included even if spouse is not filing: If you are married and living together, your non-filing spouse’s income is included in the calculation — even if only one spouse is filing bankruptcy
• Excluded: Social Security benefits (all types), payments to victims of war crimes, payments related to national emergencies, and disability payments to veterans for service-connected disabilities

What If My Income Is Above the Virginia Median?

Being above the median does not automatically disqualify you from Chapter 7. It triggers the second part of the means test — the expense deduction calculation under Official Form 122A-2. This calculation subtracts IRS-standardized allowances for housing, food, transportation, healthcare, and other necessary expenses from your CMI. If your remaining “disposable income” after those deductions is below the statutory threshold, you still pass and may file Chapter 7.

The two key disposable income thresholds under 11 U.S.C. § 707(b)(2) are:

• If your monthly disposable income multiplied by 60 is less than $7,475 — you pass the means test
• If it is more than $12,475 — a presumption of abuse arises and Chapter 7 may be dismissed
• If it falls between $7,475 and $12,475 — additional calculations determine whether you pass

These thresholds are adjusted periodically under 11 U.S.C. § 104. An experienced bankruptcy attorney can model your specific numbers before you file.

Who Is Exempt From the Means Test?

Not everyone must complete the means test. You are exempt if:

• Your debts are not primarily consumer debts (e.g., primarily business debts)
• You are a disabled veteran whose debts were incurred primarily during active duty or a homeland defense activity

What Happens If You Fail the Means Test?

Failing the means test means you cannot file Chapter 7 — but it does not mean you have no options. Chapter 13 bankruptcy is available regardless of income. In a Chapter 13 case, you keep your property and repay debt through a court-approved three-to-five-year plan. For many above-median filers, Chapter 13 is actually a more powerful tool — it allows you to save a home from foreclosure, restructure car loans, and discharge debts that Chapter 7 cannot touch.

The length of your Chapter 13 plan is also determined by your income relative to the Virginia median: below-median filers may propose a three-year plan, while above-median filers are generally required to propose a five-year plan.

Means Test Strategy in the Eastern District of Virginia

EDVA trustees Gregory Stefan, Kelly M. Barnhart, and Suzanne E. Wade review means test calculations carefully. Common areas of trustee scrutiny include: whether non-filing spouse income is correctly included; whether income received during the six-month lookback period is accurately averaged; and whether above-median filers are applying IRS standard expense allowances correctly rather than inflating actual expenses. Getting the means test right at the outset avoids objections and case dismissal.

Get a Free Means Test Evaluation

At Merna Law, means test analysis is part of every free initial consultation. We will run your numbers against current Virginia thresholds, apply the expense deduction calculation if needed, and tell you clearly whether Chapter 7 is available to you — and if not, what your Chapter 13 options look like. Schedule your free consultation today.