Navigating the Means Test: Qualifying for Chapter 7 or Chapter 13 Bankruptcy
The Means Test looks at your Median Income to determine for which Chapter of Bankruptcy you qualify:
Chapter 7 or Chapter 13
As of April 1, 2016, the median income levels for Kansas and Missouri have increased across the board, potentially affecting your eligibility for Chapter 7 Bankruptcy or Chapter 13 bankruptcy. The Means Test uses these median income levels to determine which chapter of bankruptcy you qualify for.
Updated Median Income Levels for Kansas:
- 1 Earner: $45,707 (Previously $45,653)
- 2 Persons: $60,634 (Previously $60,562)
- 3 Persons: $67,429 (Previously $67,349)
- 4 Persons: $80,735 (Previously $80,639)
- 5 Persons: $89,135 (Previously $88,739)
Updated Median Income Levels for Missouri:
- 1 Earner: $44,286 (Previously $44,233)
- 2 Persons: $54,697 (Previously $54,632)
- 3 Persons: $63,566 (Previously $63,491)
- 4 Persons: $74,386 (Previously $74,298)
- 5 Persons: $82,786 (Previously $82,398)
If your income has been on the borderline in the past, these changes might influence your ability to file for Chapter 7 bankruptcy. You are presumed to qualify for Chapter 7 bankruptcy if your household income is below the median level. However, many factors determine 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.
