What is the bankruptcy means test?

The bankruptcy means test determines whether you qualify to file Chapter 7 bankruptcy. It compares your average monthly income over the past 6 months to your state's median income. If you're below the median, you automatically qualify. If above, you must pass a second part examining disposable income.

How much debt do you need to file bankruptcy?

There is no minimum debt amount required to file bankruptcy. However, most bankruptcy attorneys recommend filing only when debt exceeds what you can realistically repay within 5 years, typically $10,000 or more.

How long does bankruptcy stay on your credit report?

Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. Chapter 13 bankruptcy stays for 7 years. Both affect your ability to get new credit, but the impact diminishes over time as you rebuild.

What states does this calculator support?

BankruptcyByState.net supports bankruptcy means test calculations for all 50 states using current federal and state-specific median income figures.

What are the 2026 median income thresholds for Chapter 13 repayment in Maryland?

In Maryland for 2026: 1-person $84,216/year, 2-person $106,128/year, 3-person $118,920/year, 4-person $134,832/year. Filers at or below the median use a 36-month plan; above-median filers use 60 months.

How is my monthly Chapter 13 repayment calculated in Maryland?

Your monthly Chapter 13 payment in Maryland equals your disposable income: monthly income (6-month average) minus IRS-allowed expense standards, minus secured debt payments, minus priority debt obligations.

What happens if I miss a Chapter 13 payment in Maryland?

Missing Chapter 13 payments in Maryland can prompt the trustee to file a motion to dismiss. You can typically cure the arrears before the hearing. If dismissed, the automatic stay lifts and creditors can resume collection immediately.

Maryland Chapter 13 Repayment Plan Calculator 2026

A Chapter 13 repayment plan in Maryland runs for either 36 months (if below the Maryland median income) or 60 months (if above). For a 1-person household, Maryland's 2026 median income is $84,216/year ($7,018/month). For a household of four: $134,832/year ($11,236/month).

Your monthly payment is your projected disposable income: income after IRS-allowed expenses, secured debt payments, and priority debt payments. Secured creditors (mortgage arrears, car loans) are paid first through the plan. Priority unsecured creditors (recent taxes, domestic support) must be paid in full. General unsecured creditors (credit cards, medical bills) receive the remainder - which can be as little as 0% in some plans.

Maryland 2026 Median Income Reference

Household Size	Annual	Monthly	Plan Length
1 person	$84,216	$7,018	36 months (below median) / 60 months (above)
2 people	$106,128	$8,844	36 / 60 months
3 people	$118,920	$9,910	36 / 60 months
4 people	$134,832	$11,236	36 / 60 months

Frequently Asked Questions

What is the minimum monthly payment in a Maryland Chapter 13 plan?

There is no absolute minimum, but your plan must pay at least: (1) all secured debt arrears and ongoing secured payments; (2) all priority debts in full; and (3) at least as much to unsecured creditors as they would receive in a Chapter 7 liquidation of your non-exempt assets. If you have no non-exempt assets and no disposable income after expenses, your unsecured payment can theoretically be $0 - though your total plan payment still includes secured and priority obligations.

Can I modify my Chapter 13 plan in Maryland after it is confirmed?

Yes. If your income decreases, expenses increase, or you encounter a financial hardship during the plan, you can file a motion to modify your Chapter 13 plan. Common modifications include reducing monthly payments, extending the plan (up to the 60-month maximum), or surrendering a secured asset. If modification is not feasible, you may be able to request a hardship discharge if the inability to complete the plan is due to circumstances beyond your control.

What happens if I miss a payment in my Maryland Chapter 13 plan?

Missing Chapter 13 plan payments is serious. After a missed payment, your trustee may file a motion to dismiss your case. If dismissed, the automatic stay lifts and creditors can resume collection immediately. You can typically cure missed payments by catching up before the dismissal hearing. If dismissed for non-payment, you can refile - but the automatic stay in a second case filed within 1 year lasts only 30 days automatically, requiring a court motion to extend.