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Filing Chapter 7 With No Income or Between Jobs

Yes, you can file Chapter 7 with no income or while you are between jobs. Low income makes the means test easier to pass, and you may qualify to pay the court fee in installments or have it waived. Call (310) 362-9071 to talk through the timing before you start a new job.

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There is no minimum income to file Chapter 7
The means test averages the 6 full months before you file
Unemployment benefits may or may not count, because courts disagree and the official form lets you argue they should be left out; Social Security does not count

At a glance

6 monthsThe income look-back the means test uses

Up to 4Installments allowed for the court filing fee, paid within 120 days

150%Of the federal poverty line, the income limit for a Chapter 7 fee waiver

Filing with no income is common

Filing Chapter 7 with no income is common and allowed. Many people file right after a layoff, an illness or a business closing.

Chapter 7 does not ask you to pay your creditors from future income. It wipes out qualifying debts and lets you keep property that is protected by exemptions. So a lack of income does not stop you from filing. In many cases it is the reason Chapter 7 makes sense. Our Chapter 7 bankruptcy overview explains the full process.

You still need to complete a credit counseling course before you file and a money management course after. See our page on credit counseling and debtor education courses. Many providers lower or waive their fee for people with low income.

How the means test treats low or no income

The means test adds up your household income for the 6 full calendar months before you file. It divides by six, then compares the result to the California median for your household size. If you have had little or no income for several months, you will usually fall below the median and pass. See the current California median income figures.

Here is what usually counts as income in the test:

Wages and self-employment income, before taxes
Unemployment benefits
Regular help from family or a partner toward household bills
Rent, support, pension and private disability payments (Social Security disability is not counted)

Social Security benefits are not counted. If you are close to the line, a means test evaluation tells you where you stand.

Timing around a new job

A new job can change the picture. Because the means test looks back 6 months, a new salary raises your average a little each month. Filing soon after you start may still pass the test. Waiting too long may not.

The test is not the only check. The trustee and the U.S. Trustee also look at your current budget. If your new pay leaves a lot left over each month, they can question whether Chapter 7 is right for you. You must list a new job or a job offer in your papers.

Just lost your job: your old salary still counts for a few months. We can find the first month you pass.
Job offer in hand: filing before or right after the start date is often simpler. We look at both.
Gig or part-time work: bring records of what you earned each month, even if it varied.

Paying the court filing fee with no income

You have two options if the court filing fee is hard to pay. You can ask to pay it in up to 4 installments. All payments must be made within 120 days after you file, and the court can allow up to 180 days for cause.

You can also ask the court to waive the Chapter 7 filing fee. You qualify only if your household income is below 150% of the federal poverty line and you cannot pay the fee in installments. Based on the 2026 federal poverty guidelines, 150% of the poverty line works out to:

Household size	150% of 2026 poverty line (per year)
1	$23,940
2	$32,460
3	$40,980
4	$49,500

These figures are calculated from the 2026 federal poverty guidelines. The court's own table controls. If you pay in installments, your attorney cannot be paid until the court fee is paid in full. Learn more on our filing fees, waivers and payment plans page. Our own flat fee for Chapter 7 starts at $1,200 plus the court filing fee, and we offer payment plans.

Living on savings or family help

If you are living on savings, the money in your account on the day you file becomes part of your case. It is safe only if an exemption covers it. California System 2 has a wildcard exemption. For amounts effective April 1, 2025, it is $1,950 plus any unused part of the home exemption, up to $38,700 in total. That can protect cash for many renters.

If family pays some of your bills, list it. Regular help counts as income in the means test. A one-time gift is treated differently. Be ready to show the trustee where your money comes from at the 341 meeting. Our Chapter 7 trustee guide explains what they check.

Mistakes to avoid

Draining savings to pay one creditor. Large payments before filing can be recovered by the trustee.
Not listing family help. Unlisted income is a common reason a trustee asks for more papers.
Waiting for the new paycheck. A few months of new salary can push you over the median.
Using retirement money to pay debts. Retirement accounts are often protected in bankruptcy. Cashing them out first can waste that protection.

What it costs

Chapter 7: flat attorney fee from $1,200, plus the $338 court filing fee
Chapter 13: attorney fee quoted in writing, and part of it can be paid through the plan
Payment plans are available, and the first consultation is free

See the full fee breakdown

Questions about filing with no income

Can I file Chapter 7 with no income at all?

Yes, you can file Chapter 7 with no income at all. There is no minimum income. You will need to show the trustee how you pay your basic living costs, such as savings or help from family.

Do unemployment benefits count in the means test?

Unemployment benefits may or may not count in the means test. The official form lets you leave them out if you contend they are a Social Security Act benefit, and courts disagree. We look at the rule that applies to you. Even so, unemployment is often much lower than your old pay, so many people still pass.

Should I file before or after I start a new job?

Filing before or soon after you start a new job is often easier, because the means test averages your past 6 months. The right month depends on your old pay, your new pay and your household size. We can work it out with you.

Can the court waive my filing fee if I have no income?

Yes, the court can waive your Chapter 7 filing fee if your income is below 150% of the poverty line and you cannot pay in installments. The judge decides. Installments are the more common route.

Published by Law Offices of John Asuncion. Responsible attorney: John C. Asuncion, State Bar of California No. 165406. Last updated October 2026. This page is general information, not legal advice for your situation.

Free consultation

Out of work and buried in bills

Call (310) 362-9071 or send the form. We can check your means test and fee options with you at no cost.

Law Offices of John Asuncion
9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.

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