Chapter 7 Bankruptcy Lawyer Guide: The Washington State Means Test in 2026
The Chapter 7 means test is the most common eligibility hurdle people research before hiring a bankruptcy attorney. Understanding how it works in Washington State can help Lynnwood residents take the right next step. If you have been wondering whether your income is too high to file for Chapter 7, this guide breaks down what the court examines, what Washington's 2026 income figures mean for you, and what options remain if you do not pass.
What Is the Chapter 7 Means Test?
The Chapter 7 means test determines whether your income is low enough to qualify for Chapter 7 bankruptcy. You pass if your income falls below your state's median for your household size, or if your income minus allowed expenses leaves too little to fund a meaningful Chapter 13 repayment plan.
The court compares your average monthly income over the past six months to the median income for your household size in Washington. These figures come from Census Bureau data and are updated by the U.S. Trustee Program roughly twice a year.
Current monthly income includes all sources received during those six months, but excludes Social Security and VA disability payments. This matters for households in Lynnwood where many residents receive a mix of wages, self-employment income, and benefit payments.
What Are Washington State's 2026 Income Limits?
Washington has some of the highest median income thresholds in the country, which helps many local families qualify for Chapter 7 without complex additional math. Working with a Chapter 7 bankruptcy lawyer early in the process ensures you apply the correct figures for your household size and filing date.
According to the U.S. Trustee Program, Washington State median income limits for cases filed on or after July 15, 2026, are:
- 1-person household: $88,585 per year.
- 2-person household: $107,100 per year.
- 3-person household: $131,737 per year.
- 4-person household: $156,567 per year.
For each additional household member beyond four, add $11,100. A five-person household, for example, would have a limit of $167,667.
A knowledgeable Chapter 7 bankruptcy lawyer can confirm which figures apply on the exact date of filing, since the DOJ updates these numbers every April and November.
How Is Your Income Calculated?
Add up your gross income for the last six months, divide by 6 to get your average monthly income, then multiply by 12 to get your annualized figure. Compare that number to the median gross income limit for a household of your size in Washington State.
The critical point is that these are gross income thresholds, not net income after taxes.
What If Your Income Is Above the Median?
Exceeding the median does not automatically disqualify you. You can still qualify by deducting allowed expenses from your income. If the remaining disposable income is too low to fund a meaningful Chapter 13 repayment plan, you qualify for Chapter 7. A Chapter 7 bankruptcy lawyer can walk you through the full expense deduction analysis to determine whether this second part of the test works in your favor.
Allowable deductions include housing, transportation, food, healthcare, and certain secured debt payments. Given the cost of living in Snohomish County, including Lynnwood housing and commuting costs, these deductions can meaningfully affect where your disposable income lands. Consulting a Chapter 7 bankruptcy lawyer before filing gives you the clearest picture of how these deductions apply to your specific situation.
What Happens If You Fail the Means Test?
Failing the means test is not the end of the road. Chapter 13 allows eligible filers to restructure debt through a court-supervised repayment plan rather than wiping it out entirely. You can learn more about that path on the Chapter 13 Bankruptcy page.
Frequently Asked Questions
Does Social Security Income Count Toward the Means Test?
Social Security and VA disability payments are excluded from the current monthly income calculation. This is an important factor for older or disabled residents in Lynnwood who rely on these income sources.
What If My Income Just Dropped Before Filing?
The means test uses the prior six months and may not reflect your actual current income. If your income recently decreased, an attorney can help you assess whether waiting a month or two could improve your result.
Are There Exemptions to the Means Test?
Reserve component members of the U.S. Armed Forces called to active duty after September 11, 2001, who served at least 90 days, are exempt for up to 540 days after active duty ends. Additionally, if your debt is not primarily consumer debt, the means test does not apply.
Talk to a Bankruptcy Attorney Serving Lynnwood, WA
The means test has many moving parts, and small details can change the outcome. Kimberly J. MacLeod P.C. is a dedicated Chapter 7 bankruptcy lawyer serving individuals and families in Lynnwood and throughout Snohomish County. Every client works directly with Kim, receiving one-on-one attention from start to finish. Call 425-673-6300 today or visit the contact page to request your free initial consultation. You can also explore the Chapter 7 Bankruptcy page to learn more about the filing process and what to expect.
