Updated April 2025 Median Income Levels for Kansas and Missouri Bankruptcy Filers
Navigating bankruptcy can be overwhelming, but understanding the latest income thresholds is crucial for determining eligibility. Starting April 1, 2025, new median income levels for Kansas and Missouri have been released. These figures are essential for those undergoing the Means Test, which determines whether Chapter 7 or Chapter 13 bankruptcy is the right option for you.
Updated Median Income Levels (Effective April 1, 2025)
Kansas:
- 1 Person: $63,366
- 2 People: $82,770
- 3 People: $93,960
- 4 People: $115,176
- Add $11,100 for each individual in excess of 4.
Missouri:
- 1 Person: $63,185
- 2 People: $79,586
- 3 People: $98,582
- 4 People: $108,983
- Add $11,100 for each individual in excess of 4.
What These Numbers Mean for Bankruptcy Filers
The Means Test compares your household income to the median income for your state and household size. If your income is below the median, you are presumed eligible for Chapter 7 bankruptcy, which discharges unsecured debts. However, if your income is above the threshold, you may need to file for Chapter 13 bankruptcy, which involves a structured repayment plan over several years.
The Importance of the Means Test
The Means Test doesn’t just compare your income to the median—it also accounts for allowable expenses and other financial factors. Even if your income exceeds the median, you might still qualify for Chapter 7 bankruptcy after considering deductions for necessary expenses.
Why the Updated Numbers Matter
These updated median income levels directly impact eligibility for bankruptcy. Staying informed about these changes ensures you’re prepared to make the best financial decisions for your situation. Whether you’re struggling with mounting debts or seeking a fresh financial start, understanding your options is the first step.
Your Path to a Stress-Free Legal Experience
At Walden Legal Solutions, we specialize in helping Kansas and Missouri residents navigate the complexities of bankruptcy. Our virtual services make the process cost-saving and convenient, ensuring you get the guidance you need for a fresh financial start.
