The first step in determining whether Chapter 7 bankruptcy is the best solution for your debt problems is to see if you are eligible for this type of relief. Not everyone has the legal ability to discharge their debts. First, you must see if you qualify under the means test, which is a formula that assesses if someone’s income is low enough to justify Chapter 7 protection.
A means test begins with a comparison between the prospective filer’s current monthly income and their state’s median income. If your income falls below the state median for a household of your size, you automatically qualify for Chapter 7 bankruptcy, and there is no need to review additional means test factors. Each year, the state’s median income changes, so it is important to work with an experienced attorney who has the current information.
For 2025, the median incomes for various household sizes in Georgia include the following:
- One person: $62,401
- Two people: $81,309
- Three people: $98,654
- Four people: $114,618
- Five people: $125,718
Beyond that, the income levels rise by $11,100 for each additional person in the household.
If your income is above the state median, further evaluation of your financial situation is required to determine eligibility. Your expenses and other financial obligations will be analyzed to see if you can repay at least a portion of your debts. For example, necessary recurring payments, such as utility bills, housing costs and childcare expenses will be deducted from what you earn in order to determine what disposable income you have, if any.
Being aware of your state’s median income levels and understanding how the means test works are critical steps in the bankruptcy filing process. Should you be unable to qualify for Chapter 7 debt discharge, a Chapter 13 repayment plan might be the best way to regain your financial stability. Consulting with a knowledgeable bankruptcy attorney can give you an informed perspective on your options.
Jeff Field & Associates represents Georgia residents in Chapter 7 and Chapter 13 bankruptcies, as well as other debt relief matters. Please call 404-381-1278 or contact us online to schedule a consultation to discuss whether you qualify under the means test given your particular circumstances. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.