Maryland Median Income Limits and the Chapter 7 Means Test: Do You Qualify?

If a wage garnishment just clipped your paycheck or a foreclosure sale is on the calendar, the first decision is simple: do you qualify for Chapter 7 in Maryland right now? 

Want a fast, accurate yes/no and a filing plan? Schedule a consultation with a top-rated Chapter 7 bankruptcy attorney in Annapolis.

How the Maryland Means Test Works

The means test uses a two-stage framework to decide whether you can proceed in Chapter 7 based on income and allowed deductions. It relies on your six-month income history, standardized expense data, and specific line-item proofs. Here’s how each stage fits together, and what it does (and does not) decide.

Stage 1: Median Comparison (Form 122A-1)

At the first stage, the court looks at your current monthly income (CMI), your gross income received during the six full calendar months before filing, averaged and annualized. You disclose this on Official Form 122A-1. If your annualized CMI is at or below Maryland’s median for your household size on the filing date, no presumption of abuse arises at step one and you may move forward in Chapter 7 (subject to the rest of the Bankruptcy Code).

Before you calculate, keep these two make-or-break points in mind:

Which months count: Use the six calendar months immediately before the month of filing; it.

Who is in your household: Identify the number of your household size and regular contributors accurately. Family size determines which Maryland median income level applies.

Stage 2: Means-Test Calculation (Form 122A-2)

If your income is over the applicable median, a presumption of abuse arises and you must proceed to Official Form 122A-2. This form applies IRS National and Local Standards for ordinary living expenses and allows specific actual payments, such as taxes and insurance, plus certain secured-debt payments (mortgage, vehicle) and priority obligations (some taxes or support). After subtracting these standardized and documented amounts, the form yields a monthly disposable income figure. Multiply that by 60 to create a five-year projection; if it falls below the statutory thresholds, the presumption of abuse does not arise even though you started over median.

To complete this stage correctly, the form distinguishes between:

• Lines that use standardized amounts (drawn from IRS/Census tables), and
• Lines that require proof (pay stubs, policy declarations, loan statements, support orders, and similar records).

Median figures change during the year when the U.S. Trustee Program updates Census-based data. The controlling table is always labeled by effective date (for example, “For cases filed on or after November 1, 2025”). Filing even a week earlier or later can shift which median applies and, in close cases, that shift can change the outcome. Align your filing strategy with the exact table in effect for your chosen date.

The means test answers whether you’re eligible to be in Chapter 7. It does not decide what you keep. Because Maryland has opted out of the federal exemption scheme, protecting your property depends on state exemptions found in Md. Code, Courts & Judicial Proceedings § 11-504, which lists categories and caps. The cleanest path is numbers first, everything else second. Performing the Means Test requires analyzing a complex web of various factors. Work with a Chapter 7 bankruptcy lawyer in Maryland to confirm eligibility. That way, your next step rests on accurate inputs, the correct table, and complete documentation.

Maryland Qualification

Use the checklist below to see where you stand. If the items fit your situation, you’re on track for Chapter 7 eligibility.

• You qualify when your income meets the Maryland medians. For cases filed on or after November 1, 2025, the medians are $84,699 (1 person), $111,673 (2), $132,464 (3), and $161,913 (4), plus $11,100 for each additional person. If your six-month average (annualized) is at or below the figure for your household size on your filing date, the presumption of abuse under § 707(b)(2) does not arise at step one.
• You qualify when you’re over median but your Form 122A-2 math defeats the presumption. Standardized IRS allowances and documented payments (taxes, insurance, mortgage/vehicle, and priority debts) can reduce disposable income below the thresholds. This often helps families with meaningful housing and health-insurance costs, single filers with ordinary payroll deductions and transportation expenses, or households supporting dependents and paying priority taxes.
• You qualify when your paperwork proves the deductions you claim. Trustees compare every line to evidence: pay stubs for each month in the window, benefit letters, self-employment P&L, mortgage and auto statements, support orders, insurance declarations, and proof of tax withholding. Solid documentation preserves every lawful deduction and keeps your disposable income calculation accurate.
• You qualify when you file at the right moment in the six-month window. Because CMI uses six full calendar months: timing matters. If your income recently fell, waiting a month may swap in a lower-earning month; if your income will rise, filing sooner may keep a higher paycheck out of the average. Align your filing date with the most favorable median-comparison table.
• You qualify when a statutory exemption removes the presumption entirely. Two common examples: cases not primarily consumer debts and certain qualifying military servicemembers. You claim these on Form 122A-1 (and, when applicable, Form 122A-1Supp). Even with an exemption, accurate forms and a straightforward budget are still expected.
• You qualify when “yes” moves you into the ordinary Chapter 7 path. Passing the means test sends your case into the standard Chapter 7 discharge process. There is no chapter 7 payment plan; once you pass the test, the remaining work is accuracy, disclosure, and reasonable budgeting with a Chapter 7 bankruptcy lawyer at Chambers Law Firm, P.C. ready to guide each step.

Get Your Chapter 7 Means Test Done Right with Chambers Law

When your six-month average sits at or below the Maryland median for your family size, or when the Form 122A-2 deductions reduce disposable income beneath the § 707(b) thresholds, you qualify for Chapter 7, and your case can move into the Chapter 7 discharge process. A Chapter 7 bankruptcy does not require repayment of your unsecured debts. 

The only numbers that matter are the ones everyone in the system uses: the current median-income table effective for your filing date and the Official Forms 122A-1/122A-2 that convert raw income and documented expenses into a defensible result. Chambers Law Firm, P.C. will run the official means test with up-to-date data, align your filing date to the most favorable table, and prepare a record that stands up in review—contact us today to speak with a Chapter 7 bankruptcy lawyer who will confirm eligibility and file promptly.