UPDATES for Median Income Levels: Kansas and Missouri Bankruptcy Filers —
The Means Test looks at your Median Income to determine for which Chapter of Bankruptcy you qualify …
Chapter 7 or Chapter 13
Most individual debtors filing for bankruptcy relief are required to complete a version of Bankruptcy Form 122. The Means Test is a two-part calculation that determines whether a debtor is eligible to qualify for Chapter 7 bankruptcy or if they need to file for Chapter 13 bankruptcy. The Means Test will calculate the debtor’s disposable income available to repay creditors in a Chapter 13 bankruptcy case.
On April 1, 2024, the Median Income Levels changed. Typically, Median Income Levels are adjusted each April and November. However, they are being updated again already! The U.S. Trustee Program will apply the updated data to cases filed on or after May 15, 2024.
The April numbers were up across the board for both Kansas and Missouri. This was good news for filers and a good sign of the economy turning around. So, in turn, it is also good that the median income numbers are not changing for Kansas or Missouri on May 15th.
While there may be no change median income, it is only a part of “Means Testing.” Other areas that may be reviewed from the Census Bureau, IRS data and Administrative Expenses Multipliers such as:
- IRS Collection Financial Standards
- National Standards: Food, Clothing and Other Items
- National Standards: Out-of-Pocket Health Care Expenses
- Local Standards: Housing, Utilities and Transportation
- Actual Administrative Expenses of Administering a Chapter 13 Plan
If your income and or expenses have been on the border in the past, due to these changes, your ability to file for Chapter 7 Bankruptcy vs a Chapter 13 Bankruptcy might have changed.
Pre-April 1, 2024 Median Income Levels for Kansas:
1 Person $61,967
2 Person $79,416
3 Person $96,366
4 Person $106,796
5 Person $116,696
Post-May 15, 2024 Median Income Levels for Kansas:
1 Person $64,518
2 Person $82,685
3 Person $100,333
4 Person $111,192
5 Person $121,092
Pre-April 1, 2024 Median Income Levels for Missouri:
1 Person $57,248
2 Person $73,751
3 Person $87,722
4 Person $101,726
5 Person $111,626
Post-May 15, 2024 Median Income Levels for Missouri:
1 Person $59,605
2 Person $76,787
3 Person $91,333
4 Person $105,914
5 Person $115,814
You are presumed to qualify for Chapter 7 Bankruptcy if your household yearly income, as determined by the Means Test, is below the Median Income Level. However, many factors determine which Chapter of Bankruptcy and course of action is in your best interest.