New Means Test Number Released

Posted on November 21, 2014 at 1:41pm by

Kansas City Bankruptcy Lawyers Discuss Chapter 7 Eligibility

Starting November 1, 2014, all new bankruptcy filings will undergo new means test numbers. This will not affect bankruptcies filed before this date. The numbers are based on data from the 2010 US Census concerning the median family income by family size.

What is the Bankruptcy Means Test?

Congress created the means test in 2005 to assess two things: 1) whether a person is eligible for Chapter 7 bankruptcy and if not 2) what that person’s monthly payment would need to be in a Chapter 13 case. The test was created specifically to prevent those with a high income from filing for Chapter 7 bankruptcy in an effort to get them to file for Chapter 13 instead so that at least a portion of their debts would be paid. There are some exceptions to the means test, such as if you are a disabled veteran, military reservist, in the National Guard or if most of your debts are from business debts. You should check with a bankruptcy attorney to see if you meet these exceptions as they have their own qualifying factors.

What is the New Means Test for Kansas Bankruptcy?

Numbers based off Kansas household earners are as follows:

  • 1 Earner – $45,246
  • 2 People – $59,610
  • 3 People – $65,010
  • 4 People – $74,804
  • Over 4 People – $8,100 must be added for each additional person in excess of 4.

All of the numbers for Kansas increased by about $1,000, except for households with three people, which decreased by about as much.

Do I Qualify for Bankruptcy in Missouri?

Numbers based off Missouri household earners are as follows:

  • 1 Earner – $41,700
  • 2 People – $51,940
  • 3 People – $61,119
  • 4 People – $71,550
  • Over 4 People – $8,100 must be added for each additional person in excess of 4.

Like in Kansas, Missouri means testing numbers increased, but the increases were mostly slight. The exception is that households with three people increased by $1,570.

Each state has its own unique numbers; therefore, consult with www.justice.gov if you live in a state outside of Kansas or Missouri.

Need a Kansas City Bankruptcy Lawyer?

The Chapter 7 means test is not always a black and white issue. Always discuss your situation with a qualified bankruptcy attorney for a true assessment of your finances and eligibility. Even if you do not qualify for Chapter 7, you have other options for debt relief, including but not limited to Chapter 13 bankruptcy.

If you pass the new standards for the means test and either want to know more about bankruptcy or wish to begin the process, then consult with a bankruptcy attorney to learn about your options for resolving your debts. Chapter 7 bankruptcy is a good way of gaining control over your debt and having a fresh start in life.



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