Up for Some, Down for Others

Median income figures used for the Kansas bankruptcy means test change again on November 1, 2015. There is a mixed message. Median income for one earner and a household of two goes down while the median income for families of three, four and more goes up.

Kansas Bankruptcy Means Test

Here are the new figures for bankruptcy cases filed in Kansas on or after November 1, 2015:

1 – $45,653 – down

2 – $60,562 – down

3 – $67,349 – up

4 – $80,639 – up

Add $8100 for each additional household member.

Bankruptcy law utilizes a funny way of counting annual income. Don’t worry about doing the calculation on your own. The attorneys at Neis & Michaux are experienced at means test math and will do the figuring for you.

We’ll need from you seven months of pay stubs or a printout for that time period and all other income for seven months. If you have had business income, we’ll need a month by month list of income and expenses to calculate your net income.

The formulas are designed so that 75% of people will be under median income and pass the Kansas bankruptcy means test at the first stage.

What If My Income Is Over Median?

Don’t fret if you think your income exceeds the median income figures in the chart above. It doesn’t mean you aren’t eligible for bankruptcy. It means a long form has to be filled out and various allowances and expenses deducted to learn your disposable income and your ability to pay. We’ll help you with this complicated form too.

We’ve learned from 10 years of experience since the means test was enacted in 2005 that most of our clients pass the Kansas bankruptcy means test. Even those who are required to pay back debt in a chapter 13 bankruptcy pay far less than what they owed before filing for bankruptcy. Help for out of control debt is available.

Photo Credit: Rich Anderson