Understanding the Means Test: Navigating Chapter 7 and Chapter 13 Bankruptcy
It’s that time of year again. As of November 1, 2015, new median income levels for Kansas and Missouri have been announced, impacting bankruptcy filers. The Means Test uses these median income levels to determine your qualification for Chapter 7 or Chapter 13 bankruptcy.
Updated Median Income Levels for Kansas:
- 1 Earner: $45,653 (Previously $45,980)
- 2 Persons: $60,562 (Previously $60,577)
- 3 Persons: $67,349 (Previously $66,065)
- 4 Persons: $80,639 (Previously $76,017)
- 5 Persons: $88,739 (Previously $84,117)
Updated Median Income Levels for Missouri:
- 1 Earner: $44,233 (Previously $42,376)
- 2 Persons: $54,632 (Previously $52,783)
- 3 Persons: $63,491 (Previously $62,110)
- 4 Persons: $74,298 (Previously $72,711)
- 5 Persons: $82,398 (Previously $80,811)
In Kansas, the median income levels have remained relatively steady, with slight decreases for smaller families and increases for larger ones. In Missouri, the numbers have risen across the board. If your income has been on the borderline in the past, these changes might affect your eligibility 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 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.
