The bankruptcy means test is a calculation used to determine whether you qualify to file for Chapter 7 bankruptcy. It compares your income to the median income for a household of your size in your state—specifically Missouri or Kansas if you're filing in the Kansas City area.
If your income is below the state median, you typically qualify for Chapter 7. If your income is above the median, you’ll go through a more detailed review of your income and expenses to see if you have enough disposable income to repay some of your debts through a Chapter 13 repayment plan instead.
The means test looks at:
- Your average income over the past six months
- Necessary living expenses like housing, food, and transportation
- Secured debt payments (like your mortgage or car loan)
It’s designed to prevent people who can afford to pay their debts from wiping them out in Chapter 7.
If you’re ready to explore how bankruptcy could help you find relief, contact us today for a free consultation. Take the first step toward peace of mind and financial freedom.
