If you are struggling with debt and cannot afford to make payments, then you may need to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy can discharge credit card debt, medical bills, personal loans and more. A debtor can find instant relief after filing for Chapter 7 bankruptcy, too, since that automatically puts an end to harassment from any creditors.
In general, the law prefers that everyone pay their debts, so Chapter 7 bankruptcy is restricted to only those who can pass a “means” test, showing that they simply do not have enough financial means (whether in income or assets) to spare. If you do not pass the means test, you may still file for another form of bankruptcy, such as Chapter 13 — but Chapter 7 would not be an option.
Qualifying for Chapter 7 bankruptcy
A means test is a simple formula to determine if a debtor qualifies for Chapter 7 bankruptcy. This formula takes a debtor’s average income for the past six months and the number of people in a household and compares it to the state’s median income. Georgia’s annual median income limit for each household size in 2025 is:
- 1 person: $62,401
- 2 people: $81,309
- 3 people: $98,564
- 4 people: $114,618
The calculation also considered necessary expenses, such as food, car payments and housing, to disposable income. If the calculation is below the threshold, then you may qualify for Chapter 7 bankruptcy. However, if you earn too much, you may need to consider other bankruptcy options, such as Chapter 13 bankruptcy.
If you are unsure if you qualify for Chapter 7 bankruptcy, an attorney can help you understand more.