Understanding the Means Test: Qualifying for Chapter 7 or Chapter 13 Bankruptcy
Chapter 7 or Chapter 13
As of April 1, 2015, the median income levels for Kansas and Missouri have increased, potentially impacting your eligibility for Chapter 7 or Chapter 13 bankruptcy. If your income has previously been on the borderline, these changes might make filing for Chapter 7 bankruptcy more favorable.
Updated Median Income Levels for Kansas:
- 1 Earner: $45,980 (Previously $45,246)
- 2 Persons: $60,577 (Previously $59,610)
- 3 Persons: $66,065 (Previously $65,010)
- 4 Persons: $76,017 (Previously $74,804)
- 5 Persons: $84,117 (Previously $82,904)
Updated Median Income Levels for Missouri:
- 1 Earner: $42,376 (Previously $41,700)
- 2 Persons: $52,783 (Previously $51,940)
- 3 Persons: $62,110 (Previously $61,119)
- 4 Persons: $72,711 (Previously $71,550)
- 5 Persons: $80,811 (Previously $79,650)
The Means Test uses these median income levels to determine your qualification for Chapter 7 bankruptcy. If your household income is below the median, you are presumed to qualify for Chapter 7. However, many factors influence which chapter of bankruptcy is best for you.
Filing for bankruptcy can provide a fresh financial start. Let our Kansas City bankruptcy attorneys guide you through the process.
