If you’re a Maryland resident facing financial hardship, you may be considering Chapter 7 bankruptcy as a way to eliminate your debts and get a fresh start. One of the most common questions we hear at The Law Offices of Nicholas J. Del Pizzo is: “Do I make too much money to qualify for Chapter 7 Bankruptcy?”
Chapter 7 bankruptcy can offer powerful relief, but there are income-based eligibility requirements set by federal law that determine whether you qualify. This article breaks down the Chapter 7 income limit in Maryland, how the Means Test works, and what to do if your income exceeds the limit.
Answering The Question: What Is the Income Limit for Filing Chapter 7 Bankruptcy?
Understanding the Chapter 7 Income Limit in Maryland
To file for Chapter 7 bankruptcy, you must pass what’s called the Means Test. This test compares your household income to the median income in Maryland for a household of your size. If your income is below the state median, you likely qualify for Chapter 7 automatically.
As of 2026, the approximate Maryland median incomes* used for the Means Test are:
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1-person household: $76,000
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2-person household: $95,000
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3-person household: $114,000
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4-person household: $135,000
(*Note: These numbers are updated periodically. Exact figures can be confirmed with your bankruptcy attorney.)
If your household income falls below the median, you pass the Means Test and are eligible to file for Chapter 7 bankruptcy.
What If Your Income Is Above the Limit?
Even if your income is above the median, you may still qualify after completing the second part of the Means Test. This portion subtracts allowed expenses—like taxes, housing, utilities, medical costs, and childcare—from your income to calculate your disposable income.
If your disposable income is too high, the court may determine that you have the ability to repay part of your debt. In that case, you may be directed to file for Chapter 13 bankruptcy, which involves a 3- to 5-year repayment plan rather than full debt elimination.
Ready to File for Chapter 7 Bankruptcy? Here is How The Law Offices of Nicholas J Del Pizzo Can Help
Bankruptcy is not a decision to take lightly, and income eligibility is just one piece of a larger financial puzzle. At The Law Offices of Nicholas J. Del Pizzo, we take the time to personally review your income, expenses, and debt obligations to determine whether Chapter 7 is the right solution for your unique situation.
When you meet with Nick Del Pizzo, you’ll work directly with an experienced Baltimore bankruptcy lawyer serving Baltimore and the surrounding Maryland communities, not a paralegal or assistant. We’ll walk you through the Means Test, explore your legal options, and create a plan to help you move forward—free from the burden of overwhelming debt.
Many Maryland residents assume they make too much to file for Chapter 7 bankruptcy—but income isn’t everything. With the right legal guidance and a clear understanding of the Means Test, you may be eligible even if your income is higher than the state median. The key is working with a trusted bankruptcy attorney who can help you navigate the process with clarity and confidence.
