Dealing with overwhelming debt is challenging, and trying to navigate bankruptcy laws in Kansas City can feel even more stressful. For those considering filing for Chapter 7 bankruptcy, the means test is often the first hurdle. Understanding how the means test works, how local numbers affect your case, and the steps needed to pass are key to moving forward. Our guide will walk with you through every detail, from income calculations to common mistakes, focusing on what matters most to people living and working in our community.
What Is the Means Test and Why Does It Matter for Chapter 7 Bankruptcy in Kansas City?
The means test determines if you qualify for Chapter 7 bankruptcy in Kansas City. Congress put this test in place to ensure that those genuinely unable to pay their debts receive relief, while those with higher incomes consider repayment under Chapter 13. The process isn’t a simple yes-or-no question; it uses a formula to analyze your income, allowable expenses, and household size, comparing this data to state and national standards.
For residents in Kansas City, the means test relies on Kansas-specific median income levels and local living costs. Passing the test means you could discharge unsecured debts such as credit cards, medical bills, and personal loans, without facing mandatory repayment plans. Local factors like housing expenses and the cost of living play a direct role in your eligibility, making Kansas City’s financial climate a primary concern in your application.
Understanding how your circumstances connect to these rules is essential. Many people find the legal terms and paperwork complex and intimidating. At Patton & Dean, LLC, we work alongside you throughout the process, helping you match your real-life numbers to Kansas City’s bankruptcy law requirements and answering questions along the way. This way, you aren’t left to figure out complicated formulas on your own.
Who Has to Take the Means Test in Kansas City and What Are the Key Exemptions?
Most people considering Chapter 7 in Kansas City must complete the means test, but there are important exemptions. If your debt is primarily from business activities rather than personal or consumer transactions, you may not need to take the test. For instance, small business owners or landlords whose debts arose from commercial activity could qualify for this exemption. Analyzing your debt sources with precision is essential because listing debts incorrectly may result in unnecessary denials or delays.
There are also exemptions for certain veterans and service members. Disabled veterans, National Guard members, and reservists called to active duty after September 11, 2001, may be exempt under specific circumstances. Meeting federal guidelines and presenting the correct documentation is vital. Even if you are unsure about your eligibility, reviewing your service records or business transaction history with a legal advisor helps ensure you do not miss a critical exemption.
We find that every Kansas City financial situation has unique characteristics. Whether supporting a household, managing family healthcare costs, or recovering from a failed business, our team at Patton & Dean, LLC starts by reviewing sources of debt and identifying potential exemptions, so no opportunity for relief is left unexplored.
How Do You Calculate Household Income for the Means Test in Kansas?
The means test calculation begins by averaging your household’s gross income over the six months before filing. This goes beyond your most recent paycheck or tax return. All sources count, including:
- Regular wages and salary, including overtime and bonuses
- Commissions and side jobs
- Income from a spouse if you live together (even if they aren’t filing jointly)
- Support payments from family members or friends
- Unemployment, disability, and other government benefits
If your income fluctuates—as is common for workers in education, construction, or hospitality—calculate each month’s pre-tax income separately, then average all six months. Missing even one pay stub or overestimating a benefit could alter your eligibility outcome. Child support, alimony, and other regular payments also factor in. Documenting these thoroughly and organizing all records before filing prevents problems.
Accuracy matters. The bankruptcy court in Kansas City may request proof for any reported income source. Bank statements, pay stubs, support records, and benefit statements should match what you report on your forms. We guide clients through assembling these materials to ensure their income section is complete and verifiable.
What Is the Median Income Threshold for Chapter 7 in Kansas and Why Does Family Size Matter?
The median income threshold is a key number in the means test. Each year, the U.S. Census Bureau releases updated figures for Kansas households of different sizes. For cases filed on or after May 15, 2025, the median income is about $63,366.00 for a single filer and approximately $82,770.00 for a two-member household in Kansas. Households with three, four, or more people have higher thresholds. Banks, courts, and trustees in Kansas City use these numbers to assess whether you “pass” the means test, based on your household composition.
Family size has a direct impact—your household can include not just children, but also relatives living with you who rely on you for support. Clear documentation makes a difference: rental agreements, school records, or evidence of support all contribute to a correct calculation. For clients near the eligibility line, changes like new dependents or a family member moving out can change the outcome. Discuss unusual household arrangements and provide detailed records to avoid disputes.
Because the median income numbers change annually, checking the most current figures before filing is crucial. We provide up-to-date information for Kansas City residents and help ensure household size is reported accurately, eliminating confusion or costly errors later in the process.
Which Expenses and Deductions Can Lower Your Means Test Calculation in Kansas City?
The second step of the means test lets you subtract essential, approved expenses from your income, reducing your calculated ability to repay debts. Kansas City residents must follow local and national guidelines when claiming these deductions. While some expenses use a standard allowance set by the IRS (such as food, utilities, and clothing), others must reflect your actual payments, like your rent, mortgage, or car loan.
Here are common deductions you may be able to claim:
- Housing & utility costs (based on Kansas City area averages)
- Vehicle expenses (payments, insurance, and transportation costs)
- Health insurance premiums & out-of-pocket medical costs
- Childcare, child support, and dependent care
- Mandatory payroll deductions such as taxes, mandatory retirement, and union dues
- Life insurance, if required for support of dependents
For any expense you claim above the standard allowance—such as medical bills for a chronic health issue—gather proof like receipts or provider statements. We advise clients to itemize and organize documentation carefully, as the Kansas City trustee or bankruptcy court may challenge amounts that look unusual or are not fully supported. Reviewing your expense section closely can mean the difference between qualifying for Chapter 7 or having to file under Chapter 13.
How Do Life Events Like Job Loss or Divorce Affect the Means Test?
Life changes—such as losing a job, seeing a significant pay cut, or going through divorce—can have a major impact on your means test calculation in Kansas City. The test uses your average income from the last six months. If you lost your job partway through that period, your average might be higher than what you’re earning now, possibly making you ineligible for Chapter 7 at first glance.
Timing your bankruptcy filing can make a big difference. For example, if you wait until lower-pay months “replace” higher-earning months in your six-month average, your means test number may decrease and improve your chance of passing. During divorce, the court considers the income and living situation as it existed for the majority of the six-month period. Documentation, including separation agreements, court orders, and updated wage statements, will clarify your true household income and support amounts.
We work with clients facing major life transitions to review whether it makes sense to file now or wait until their finances stabilize. Gathering up-to-date termination letters, benefit statements, and legal documents allows us to present the strongest case possible, tailored to the reality of your family’s current circumstances.
What Should You Do If You Don’t Pass the Means Test in Kansas City?
If your means test calculation shows disposable income above the threshold for Chapter 7, you still have options. Most often, people shift to Chapter 13 bankruptcy, where you develop a repayment plan over three to five years. This program can stop collections, protect assets, and eventually discharge remaining qualified debts at the end of the plan period. While Chapter 13 requires commitment, it can be a strong tool for regaining stability.
Sometimes, a borderline result on the means test stems from mistakes or unclaimed deductions. Reviewing your paperwork with a knowledgeable attorney may uncover legitimate expenses you missed or income incorrectly reported. Adjusting these details can sometimes move your case into the range needed to qualify for Chapter 7, especially if circumstances are changing or a new six-month average is advantageous.
Clients in Kansas City often find relief by exploring all options, not just those available right now. At Patton & Dean, LLC, we guide individuals and families through this decision-making process, explaining legal choices, and offering comprehensive credit rebuilding assistance after bankruptcy, so future financial health is always part of the conversation.
Common Mistakes to Avoid on Means Test Forms in Kansas City
Completing the means test forms in Kansas City requires precision and careful attention to detail. One of the most frequent mistakes is omitting sources of income, especially irregular payments like cash gigs or seasonal employment. Courts often cross-reference your bank statements, tax returns, and other financial records. Leaving out a single deposit or payment can cause delays, legal challenges, or even a denial of bankruptcy relief.
Misidentifying expenses is another damaging error. For example, claiming a deduction above Kansas City’s allowed standard (like inflating housing or food costs) without sufficient documentation can cause the trustee to object. When documentation does not match actual payments—such as reporting car payments higher than your loan agreement—questions are sure to arise. Matching expense types to IRS or local standards and keeping all receipts and statements organized protects your case from scrutiny.
Finally, not updating your paperwork to reflect recent life changes—like a new job, an unexpected layoff, or a significant change in household expenses—can impact your eligibility. We encourage clients to review and double-check every line before submission, reducing surprises and keeping the process smooth. At Patton & Dean, LLC, we routinely walk clients through these reviews, providing extra assurance during a stressful time.
How Can a Kansas City Bankruptcy Attorney Help You Navigate the Means Test?
Choosing a local bankruptcy attorney in Kansas City brings practical advantages. An experienced attorney knows Kansas’s current legal climate, understands how area trustees interpret expenses, and keeps up with annual updates to median income and cost of living tables. We know what documentation local courts expect and which expenses are most likely to be questioned. Our approach at Patton & Dean, LLC emphasizes sustained, direct support—not just once, but through every stage of the bankruptcy process.
We ensure you meet with the same attorney from start to finish, offering one-on-one attention that addresses your unique financial situation and personal goals. Our team also provides post-bankruptcy resources designed to promote long-term credit improvement. Unlike many larger firms, we guide you beyond the filing, assisting with credit rebuilding and financial health as an included service, so that your bankruptcy leads to meaningful financial recovery—not just a legal finish line.
Our Kansas City clients benefit from ongoing support because we want you to feel confident at every step. We answer questions, explain choices, and keep you informed as rules and numbers shift over time. This partnership is especially critical for families working to reestablish stability and move forward after bankruptcy.
Next Steps: Preparing to Take the Means Test and Start Your Bankruptcy Case
Getting ready for the means test—and for bankruptcy in Kansas City—requires collecting several documents and organizing your financial life. A comprehensive checklist includes:
- Recent pay stubs covering at least the last six months
- Statements for any spouse or contributing household member’s income
- Mortgage, rent, and utility bills to show ongoing living expenses
- Bank records for current balances and regular payments
- Monthly statements for outstanding debts and credit obligations
- Proof of support payments, such as child or spousal support orders
- Receipts or records for major medical bills, childcare, or dependent care expenses
Be thorough when gathering these records. Double-check for recent changes, especially new jobs, income loss, or increased household expenses. Track your average monthly spending to aid in the expense section of your means test forms. The more prepared you are before meeting with an attorney, the faster and more accurately we can assess your options and next steps.
If you feel ready to move forward or want to discuss your situation in detail, reach out to our team at Patton & Dean, LLC, or call us at (913) 203-4786. We’re committed to providing clear, personal guidance and ongoing support for every Kansas City family seeking a path to financial security and renewal.
