2025 Median Income Limits for Bankruptcy Means Test

The 2025 median income numbers effective in spring 2025 will be the first median income limits for 2025. Depending on household size, it will again get to easier to qualify for Chapter 7, because of a means test adjustment. The means test for bankruptcy decides who qualifies for Chapter 7 bankruptcy eligibility.

Step one of this process is comparing your household income against the income limits set by the DOJ to see if you earn less than California median income limits. So, someone may not qualify according to the means test in one month but after the changes they do, or vice-verse. The new numbers took effect in Spring 2025, but are temporary, and depending on inflation, interest rates, and a recession, the numbers may decrease.

Means Test: 2025 Median Income Adjustments updated in April 1.

 

It's easier to limbo under the median income limits when they raise the bar.

Every now and then, the government updates these numbers. They did it again in April 1 2025. Good news: the California 2025 figures are now higher, increasing household income for bankruptcy means test qualifying. This means that more people could qualify for Chapter 7 bankruptcy using the 2025 median income numbers.

2025 Median Income for California Households

Because the income levels of Californians change maybe once or twice a year, these recent changes in April 2025 will be the first new numbers  for 2025. You’ll see below there’s talk about household size.

It isn’t always clear who counts in a household. There may be a difference if you have a roommate who pays rent. What if you’re married? Or have kids but they’re adults. Do you live with your significant other, who has their own finances? They’re all in your household. Or, maybe they’re not.

Call and let’s meet to talk about it. But below are the California median income limits for the various household sizes.

California household size and California median income for Bankruptcy

• 1-person household: $76,190
• 2-person household: $99,936
• 3-person household: $112,536
• 4-person household: $130,845
• Each additional person: $9,900

First, this is not rigid. Just because someone earns less than the 2025 median income, it’s not certain they qualify for Chapter 7. Also, if someone earns over the California numbers for their household size, it doesn’t mean they’re ineligible. This is just the starting point on a very long form. An experienced bankruptcy attorney can help someone who is over the median complete the bankruptcy means test and still file Chapter 7 in many situations.

Don’t fret if your income doesn’t make the cut; there’s still an option. Pay back a portion of your debt while freezing interest from accruing. Also, you get peace of mind by preventing lawsuits and wage garnishment. This is better than debt consolidation, and is called Chapter 13. And yes, it’s even better than paying minimums, since by just paying minimums you’ll never get out of debt.

Finally, bookmark this page and return often. While these numbers took effect in April 2025 they will change again, especially with inflation making economy’s status uncertain. There’s a chance the California median income numbers will change before December 2025.

So, you may not want to wait to file a bankruptcy. Or maybe you do. Strategy is a big part of what I do. Let’s figure out your best option.

If you found this helpful, contact me and let’s arrange a consultation in person or video if you’re anywhere in Los Angeles County. I specialize in fresh starts, with compassion.