To qualify for Chapter 7 bankruptcy in Minnesota, your household income generally has to fall at or below the state median for your household size. For cases filed on or after April 1, 2026, that means $77,696 a year for one person, $98,328 for two, $126,487 for three, and $149,882 for four, with $11,100 added for each additional person.1United States Department of Justice. Median Family Income Table – On or After April 1, 2026 Earn more than that and you’re not automatically disqualified, but you’ll have to pass a second screen called the means test.
The Minnesota Median Income Thresholds
The U.S. Trustee Program publishes updated median-income figures based on Census Bureau data, usually twice a year. For Minnesota cases filed on or after April 1, 2026:
- 1-person household: $77,696
- 2-person household: $98,328
- 3-person household: $126,487
- 4-person household: $149,882
- Each additional person beyond four: add $11,100
If your annualized income sits at or below the threshold for your household size, no one — not the court, not the U.S. Trustee, not a creditor — can move to dismiss your Chapter 7 case on the theory that you should be repaying instead of liquidating. That protection comes from 11 U.S.C. § 707(b)(7).2Office of the Law Revision Counsel. 11 USC 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
How Household Size Is Counted
The Bankruptcy Code doesn’t define “household size,” and courts have taken three different approaches: counting everyone under the roof, counting only the debtor plus tax-return dependents, or looking at whether the people in the home actually function as a single economic unit. A roommate who keeps separate finances usually won’t count. A live-in partner who shares rent and utilities usually will. If your living arrangement isn’t a standard nuclear family, the number you use here can decide whether you’re above or below the line, and it’s worth reviewing with a bankruptcy attorney before you file.
The Income Number That Actually Matters
The figure compared against those medians isn’t your current paycheck or your annual salary. It’s your current monthly income (CMI): the average of your gross income from all sources over the six full calendar months before the month you file, multiplied by twelve.3Office of the Law Revision Counsel. 11 USC 101 – Definitions
That definition has a practical consequence: when you file changes the number. A person who lost a job in month three of a bad year may still look like a high earner if they file too soon, because those earlier paychecks are still inside the six-month window. Waiting a few months can drop the CMI below the median without anything else changing.
What Counts Toward CMI
Almost every source of money you receive goes in: gross wages, self-employment revenue, interest, dividends, pension payments, rental income, and unemployment compensation. Regular contributions to your household expenses from anyone you live with — a partner, a family member helping with the rent — also count.3Office of the Law Revision Counsel. 11 USC 101 – Definitions
If you’re married and filing on your own, your spouse’s income is still included unless you’re legally separated or living apart for a reason unrelated to the bankruptcy.2Office of the Law Revision Counsel. 11 USC 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
What’s Excluded
Social Security benefits are carved out entirely. Retirement benefits, disability benefits, and anything else paid under the Social Security Act stay out of the CMI calculation, which keeps retirees and disability recipients from being pushed over the median by their primary income source.3Office of the Law Revision Counsel. 11 USC 101 – Definitions
The Marital Adjustment
When a non-filing spouse’s income has to be included, you can subtract the portion of that income that doesn’t go to household expenses. Your spouse’s own credit card payments, child support obligations from a prior relationship, or other individual debts come out of the number. You’ll need account statements or similar documentation, but the deduction can be enough to move you from above the median to below it.
Above the Median: The Means Test
Coming in over the Minnesota median for your household size doesn’t end the inquiry. It sends you to Official Form 122A-2, the means test, which takes your CMI and subtracts a list of allowed expenses to see whether you have enough disposable income to fund a Chapter 13 plan.4United States Courts. Official Form 122A-1 Chapter 7 Statement of Your Current Monthly Income
The allowed expenses aren’t what you actually spend. Most categories — food, clothing, housing, transportation — use the IRS National and Local Standards, and you get the standard amount or your actual spending, whichever is less.5Internal Revenue Service. Collection Financial Standards Local standards vary by county. On top of those, you can deduct taxes, mandatory payroll withholdings, healthcare costs, childcare, and employer-required retirement contributions.
When the Presumption of Abuse Applies
Whatever’s left after those deductions is your monthly disposable income. Multiply it by 60 (a five-year plan) and compare the result to two thresholds:2Office of the Law Revision Counsel. 11 USC 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13
- 25% of your nonpriority unsecured debts, or $10,275, whichever is greater
- $17,150
The court uses whichever of those two is lower. Practically, if your monthly disposable income is roughly $286 or more (that’s $17,150 divided by 60), you’ll trigger a presumption of abuse. The presumption says you belong in Chapter 13, and the burden shifts to you to prove otherwise.
Rebutting the Presumption
Special circumstances can override it. The statute names two examples explicitly: a serious medical condition and a call to active military duty.2Office of the Law Revision Counsel. 11 USC 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13 To use one, you have to document the circumstance itself and itemize its financial impact to the dollar, and you have to show there’s no reasonable alternative to the higher expense or lower income it creates.
Timing Your Filing
Because the CMI window is a rolling six months, filing date is a lever. Any month you wait, the earliest month of the current window drops off and a new month rolls in. If your recent months are lower-earning than the ones about to drop off, waiting lowers your CMI. If it’s the opposite, filing sooner protects the lower number. This is one of the more common strategic calls in Chapter 7 planning, and it’s worth running the math both ways before you commit to a filing month.
Income Isn’t the Whole Test
Passing the income threshold gets you through the door. It doesn’t decide what actually happens once you’re in. A few things sit outside the income question but change whether Chapter 7 is worth filing:
Chapter 7 is a liquidation — a trustee can sell property that isn’t protected by an exemption.6United States Courts. Chapter 7 – Bankruptcy Basics Minnesota’s exemptions are relatively generous (up to $510,000 in homestead equity for a primary residence, up to $10,000 in a vehicle, and set amounts for household goods, jewelry, and tools of trade), and most filers keep everything they own.7Minnesota Office of the Revisor of Statutes. Minnesota Statutes 550.37 But if you have significant non-exempt assets, qualifying on income doesn’t mean you’ll want to file.
Certain debts also survive Chapter 7 regardless of income: domestic support obligations, recent income taxes, most student loans, fraud-related debts, DUI injury claims, and criminal restitution.8Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge If those categories make up most of what you owe, the income qualification isn’t going to help you much.
And if you’ve received a Chapter 7 discharge before, you can’t get another one until eight years have passed from the earlier filing date.9Office of the Law Revision Counsel. 11 USC 727 – Discharge Income eligibility doesn’t override that bar. Filing early gets you through the process but no discharge at the end, which is the worst possible outcome.