Last Updated September 19, 2026
Debt-to-income ratio compares monthly debt payments with gross monthly income and is commonly used in consumer lending. Bankruptcy does not use a universal DTI cutoff to determine whether someone must file Chapter 7 or Chapter 13.
The ratio can still provide a useful snapshot of how much gross income is committed to debt payments. It should not be confused with the Chapter 7 means test, Chapter 13 disposable-income analysis, or a determination that bankruptcy is appropriate.
Interactive tool
Data last verified: 2026-09-19. Calculation version 2026.09.1.
How the calculation works
Monthly debt payments ÷ gross monthly income. The result is a percentage rounded to one decimal place.
What this result does not tell you
This ratio does not measure living expenses, property equity, exemption issues, whether debts are dischargeable, or Chapter 7 means-test income. It is a general debt-load calculation, not a bankruptcy eligibility test.
Relevant legal rules
No Bankruptcy Code section sets a universal DTI limit for eligibility. Ability to fund a Chapter 13 plan is a practical and confirmation question, not this ratio.
Example
$1,500 in monthly debt payments on $5,000 gross income is 30%. That is a snapshot, not a filing threshold.
What you may want to do next
If the ratio is high and collection has started, talk with a bankruptcy attorney. If you are only curious, the Knowledge Center’s debts pages explain what bankruptcy can and cannot reach.
How Brock & Stout can help
We look at the actual debts, not a single percentage, and explain Chapter 7 and Chapter 13 options that may be available. We cannot promise a particular result.
Related resources
- Debts bankruptcy may address — Debts bankruptcy may address
Credit cards, medical bills, taxes, and more.
- Chapter 7 — Chapter 7
Discharge without a repayment plan if the rest of the case fits.
- Means-test screening — Means-test screening
The income comparison bankruptcy actually uses.
FAQs
Yes, if you have a mortgage and are calculating total monthly debt obligations. For a renter, rent generally is not treated as debt in this calculator. Different lenders can use DTI differently, and this tool is not intended to reproduce a specific lender’s underwriting formula.
Not sure which option fits your situation?
We can review your debts, income, assets, and goals with you. A screening result is not a filing recommendation.
Prefer to send us your information? Start a case evaluation.