Here are the new Kansas median income figures by family size used to determine bankruptcy eligibility for cases filed on or after March 1, 2010:

1. $41,210
2. $57,561
3. $63,212
4. $72,352

Here are the new Kansas means test income figures for cases filed on or after November 1, 2009:

1. one earner household $41,357 (up $353)
2. two person household $57,767 (up $1621)
3. three person household $63,438 (up $193)
4. four person household $72,610 (down $2016)
5. add $6900 for each individual in the household in excess of four.

New Guidelines for Cases Filed on or after March 15, 2009

Congress created a means (income) test to determine which consumer debtors must pay back some or all of their unsecured creditors in bankruptcy. Don’t worry. We have this test figured out. We will determine how this test applies to you.

If your household income is below the statewide median income, you pass the means test. Most Kansas consumer debtors pass.

But if your household income is above the statewide median income, you use IRS guidelines, not actual expenses, for certain household living expenses to determine if you have excess disposable income to pay your unsecured creditors. So far, most of our clients pass the test at this stage even if they failed the initial stage.

Census Bureau, IRS Data and Administrative Expenses Multipliers

In chapter 7 cases, the means test is calculated on an official form designated Form B22A. If you have excess income, your chapter 7 case may be dismissed for abuse. To avoid dismissal, you may file a chapter 13 case.

In chapter 13 cases, debtors must fill out Form B22C, a different version of the means test. B22C determines the amount to repay unsecured creditors in a chapter 13 plan.

There are many legal arguments over the definition of household, what is income, and what can be deducted to determine if a debtor has disposable income to pay his creditors.  This test was designed to scare you away from filing for bankruptcy.  You can see how complicated the test is with this means test calculator.  Don’t despair, we will fill out the means test for you.  Almost every client we have met passes the means test and qualifies for some type of bankruptcy help.

Individual debtors with primarily business debts are not required to pass the means test.  See my post on Bankruptcy Law Network.

Guidelines for Cases File on or after October 1, 2008, but before March 15, 2009, see below

Here are the bankruptcy income guidelines that went into effect October 1, 2008:

• 1 earner                       $39,488
• 2-person families    $54,070
• 3-person families    $60,906
• 4-person families    $71,867
• 5-person families    $68,548
• 6-person families    $63,075