What Is the Means Test?
The bankruptcy means test was introduced in 2005 to ensure that Chapter 7 bankruptcy is reserved for those who truly cannot afford to repay their debts. It compares your household's average monthly income over the previous six months to the median income for a household of your size in Utah.
If your income falls below the threshold, you pass the means test and can typically file Chapter 7. If it's above, additional calculations are required to determine eligibility.
2026 Income Limits for Utah
The following are the current Chapter 7 means test income limits for Utah, effective April 1, 2026:
| Household Size | Annual Income Limit | Monthly Equivalent |
|---|---|---|
| 1 person | $87,898 | $7,325 |
| 2 people | $95,757 | $7,980 |
| 3 people | $112,751 | $9,396 |
| 4 people | $131,741 | $10,978 |
| 5 people | $142,841 | $11,903 |
For a family of 4 in Utah, the Chapter 7 income limit is $131,741 per year (effective April 2026).
How Income Is Calculated
The means test uses your current monthly income (CMI), which is the average of your gross income over the 6 calendar months before filing. This includes:
- Wages, salary, tips, bonuses, overtime
- Business income (net)
- Rental and investment income
- Pension and retirement income
- Regular contributions from others to household expenses
Social Security income is generally excluded from the means test calculation.
What If I'm Above the Limit?
Being above the income limit doesn't automatically disqualify you. The second part of the means test allows you to deduct certain expenses:
- IRS-allowed living expenses
- Actual mortgage or rent payments
- Car payments and transportation costs
- Health insurance premiums
- Child care and education expenses
- Tax obligations
After these deductions, if your remaining disposable income is low enough, you may still qualify for Chapter 7. Otherwise, Chapter 13 remains an excellent option.
"Don't assume you won't qualify for Chapter 7 just because your income seems high. The means test allows for many deductions that can bring you below the threshold." — Douglas L. Barrett, Esq.
Tips for Preparing
To prepare for the means test, gather the following documents:
- Pay stubs for the last 6 months
- Tax returns for the last 2 years
- Bank statements
- Documentation of all income sources
- Monthly expense records
An experienced bankruptcy attorney can review your specific numbers and determine your eligibility before you file.
Not sure if you qualify? Doug Barrett offers free consultations to review your income and determine the best path forward. Call (801) 221-9911.