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Understanding the Utah Means Test in 2026: Do You Qualify for Chapter 7?

Submitted by Andrew T Curtis on October 23, 2026

Key points

  • The means test compares your average monthly income over the past six months to Utah’s published median income figures.
  • For cases filed on or after April 1, 2026, the Utah median income is approximately $87,898 for a household of one; $95,757 for two; $112,751 for three; and $131,741 for four.
  • If your income is below the median, you generally pass the first part of the test automatically.
  • If your income is above the median, a second calculation deducting allowable expenses may still qualify you.
  • These figures update roughly twice a year, so always confirm the current numbers before filing.

This article is general information, not legal advice for your situation.

When people first learn about Chapter 7 bankruptcy, they often ask whether they earn “too much” to qualify. That question is answered by a calculation called the means test — a formula Congress introduced in 2005 to make sure that people who can afford to repay a meaningful portion of their debt do so through Chapter 13 rather than wiping it out in Chapter 7.

The means test sounds complicated, but for many Utah families it is straightforward. Here is how it works.

What Is the Means Test?

The means test has two parts. The first part compares your household’s average monthly income over the six months before filing to the published median income for a household of your size in Utah. If you fall below the median, you pass — no further calculation needed. If you are above it, you move to the second part, which accounts for your actual allowable expenses and may still qualify you.

The median income figures are set by the U.S. Census Bureau and published by the U.S. Trustee Program at the Department of Justice. They are updated approximately twice a year; the figures below apply to cases filed on or after April 1, 2026.

Utah Median Income Figures for 2026 (Effective April 1, 2026)

Household size Annual median income
1 person $87,898
2 persons $95,757
3 persons $112,751
4 persons $131,741
Each additional person Add $11,100

Source: U.S. Trustee Program median family income data, updated March 18, 2026, effective April 1, 2026 (justice.gov/ust/means-testing).

Because these figures change, always confirm the current table at justice.gov/ust/means-testing before you file.

How the First Part Works

Your “current monthly income” for means test purposes is the average of your gross household income for the six calendar months before you file. This includes wages, salary, self-employment income, rental income, pension payments, and most other regular receipts. It does not include Social Security benefits, which are specifically excluded from the calculation under federal law.

You multiply that average monthly figure by 12 to get an annualized number. If that annualized number is at or below the Utah median for your household size, you pass the first part of the means test. You may proceed to Chapter 7.

A Practical Example

Suppose a couple (household of two) files in June 2026. Their combined income over the prior six months averaged $7,600 per month. Multiplied by 12, that is $91,200 per year. The 2026 Utah median for a household of two is $95,757. Because $91,200 is below the median, they pass the first part automatically and qualify for Chapter 7.

What If You Are Above the Median?

Passing the median income comparison on the first try is not required. Many people whose incomes exceed the Utah median still qualify for Chapter 7 after completing the second part of the means test.

The second part — Official Bankruptcy Form 122A-2 — allows you to subtract a long list of standardized and actual expenses from your current monthly income:

  • IRS Local Standards for housing, utilities, and transportation (these vary by county and household size, and for high-cost Utah counties they can be substantial)
  • IRS National Standards for food, clothing, housekeeping supplies, personal care, and out-of-pocket health care
  • Actual expenses for certain items like secured debt payments (mortgage, car loan), priority debt payments (taxes, child support), health insurance premiums, term life insurance, and childcare
  • Certain other deductions for marital adjustment, care of elderly family members, and similar situations

If, after all these deductions, your monthly disposable income falls below the thresholds in the means test formula, you pass — even though your gross income was above the median.

What Happens If You Do Not Pass the Means Test?

If your disposable income after expenses still exceeds the Chapter 7 thresholds, there is a presumption of abuse — a signal to the court that you have the ability to repay a meaningful portion of your debt. You may be dismissed from Chapter 7 or have your case converted to Chapter 13.

Chapter 13 is not a penalty. It is a structured repayment plan that lets you keep property, catch up on a mortgage, and discharge remaining unsecured debt at the end of the plan period. Many people who cannot qualify for Chapter 7 find that Chapter 13 still gives them a meaningful financial fresh start. Our Chapter 13 page explains how those plans work.

Special Considerations for Utah Filers

Business debtors: If more than half of your debt is business debt rather than consumer debt, the means test does not apply to you. You may file Chapter 7 regardless of your income.

Domestic support obligations: If you owe alimony or child support, those payments reduce your disposable income on the means test and can help you qualify even with a higher income.

Social Security income: Social Security retirement, disability (SSDI), and Supplemental Security Income (SSI) payments are excluded from the means test calculation. For older or disabled filers, this often brings the annualized income figure well below the median.

Check Your Bankruptcy Exemptions Too

The means test tells you whether you qualify for Chapter 7. Utah’s exemptions tell you what you can keep if you file. Understanding both together gives you the full picture of what bankruptcy may look like for your household.

Take the First Step

The means test is one piece of a larger puzzle. The only way to know for certain whether Chapter 7 or Chapter 13 makes sense for your situation is to sit down with an attorney and run the numbers together. Call us at 800-404-0018 or schedule a free virtual consultation. We serve clients across Utah by phone and video, so there is no need to drive anywhere.

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