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 is the Chapter 7 income limit in Maine for 2026?

The 2026 Chapter 7 means test limit in Maine is $60,624/year for a single person and $98,784/year for a family of four. Filers above these thresholds must complete the disposable income test or file Chapter 13.

Which chapter is better for homeowners in Maine?

For Maine homeowners behind on mortgage payments, Chapter 13 is typically better — it lets you cure arrears over 3-5 years while keeping your home. Chapter 7 cannot cure mortgage arrears and does not allow you to catch up on a defaulted mortgage.

How long does Chapter 7 vs Chapter 13 take in Maine?

Chapter 7 in Maine takes 3-6 months from filing to discharge. Chapter 13 takes 36 months (if below the $60,624/year median for 1 person) or 60 months (if above).

Chapter 7 vs. Chapter 13 Bankruptcy in Maine 2026

Chapter 7 and Chapter 13 are the two most common bankruptcy options for individuals. Chapter 7 is a liquidation — a trustee sells non-exempt assets and discharges most remaining unsecured debts within 3 to 6 months. Chapter 13 is a reorganization — you keep all assets but repay some or all debts over a 3-to-5-year plan. The right choice depends on your income, assets, debt types, and goals. In Maine, the Chapter 7 income limit for a single person is $60,624/year; filers above that threshold must either complete the disposable income test or file Chapter 13.

Chapter 7 vs. Chapter 13 Side-by-Side Comparison

Factor	Chapter 7	Chapter 13
Timeline	3–6 months	36–60 months
Eligibility	Must pass means test	Regular income; debt limits apply
Asset protection	Only exempt assets kept	All assets kept
Mortgage arrears	Cannot cure through bankruptcy	Can cure over plan term
Car loan arrears	Must stay current or surrender	Can include in plan
Tax debt	Only old qualifying taxes dischargeable	Priority taxes paid in full through plan
Monthly payment	None	Required (disposable income)
Discharge timing	~4 months after filing	After plan completion (3–5 years)
Credit report duration	10 years	7 years
Re-filing wait (same chapter)	8 years after prior Ch. 7	2 years after prior Ch. 13

Frequently Asked Questions

Which chapter discharges more debt?

Chapter 7 discharges unsecured debt (credit cards, medical bills, personal loans) faster and more completely, but non-dischargeable debts (student loans in most cases, recent taxes, alimony) survive in both chapters. Chapter 13 can discharge certain debts that Chapter 7 cannot: debts from property settlements in divorce and some tax obligations — but it takes 3 to 5 years to get there. Chapter 13 is uniquely valuable for curing mortgage arrears and saving a home from foreclosure.

Can I choose Chapter 13 even if I qualify for Chapter 7?

Yes. Qualifying for Chapter 7 does not obligate you to file it. Many filers choose Chapter 13 voluntarily to: keep assets with equity above their state's exemption limits, cure mortgage or car loan arrears, pay non-dischargeable debts (taxes, student loans) in a structured way, or avoid the Chapter 7 "liquidation" stigma. Chapter 13 also offers a "super-discharge" of certain debts that survive Chapter 7.

What happens if I start Chapter 13 but cannot complete it?

If you cannot complete your Chapter 13 plan due to a financial hardship that is genuinely beyond your control, you may be eligible for a hardship discharge of the remaining debt — but only if creditors have received at least as much as they would have gotten in a Chapter 7 case. Alternatively, you can convert your Chapter 13 case to Chapter 7 at any time as a matter of right (assuming you were not already in a Chapter 7 that was converted to Chapter 13). Conversion restarts the process but resolves the case more quickly.