Chapter 13 Eligibility in Kansas City

Chapter 13 has no means test, but you need regular income and your debts must fall within limits. Here is what qualifies you to file in the Western District of Missouri or the District of Kansas.

Quick answer: You qualify for Chapter 13 if you are an individual with regular income and your total noncontingent, liquidated debts (secured + unsecured combined) do not exceed $2,750,000. No means test. Prior filing bars: 4 years after a Chapter 7 discharge, 2 years after a Chapter 13 discharge.

Debt Limits

Under the Bankruptcy Threshold Adjustment and Technical Corrections Act of 2022 (BTATCA), the Chapter 13 debt limit is a single combined threshold:

RequirementLimit
Total noncontingent, liquidated debts (secured + unsecured)$2,750,000

This replaced the prior separate limits ($465,275 unsecured / $1,395,875 secured). Most Kansas City filers are well within this threshold. If your debts exceed $2,750,000, Chapter 11 (including Subchapter V) may be an option.

What counts: Only noncontingent (not dependent on a future event) and liquidated (amount is known or easily calculable) debts count toward the limit. Disputed debts, contingent claims, and unliquidated amounts do not count.

Regular Income Requirement

Chapter 13 is available only to "individuals with regular income" (11 U.S.C. section 109(e)). Regular income is defined broadly under section 101(30) as income that is "sufficiently stable and regular to enable such individual to make payments under a plan." This includes:

  • Wages, salary, overtime, bonuses, tips
  • Self-employment income
  • Pension and retirement income
  • Social Security benefits
  • Disability payments (SSDI, SSI, private disability)
  • Regular support from a spouse or family member
  • Rental income
  • Unemployment benefits (if regular enough)

The income does not need to be large -- it just needs to be stable enough that the court believes you can make plan payments. Seasonal workers, gig economy workers, and self-employed individuals can qualify if they can demonstrate a reliable income pattern.

No Means Test -- But Income Still Matters

Unlike Chapter 7, Chapter 13 has no means test for eligibility. You can file regardless of how much you earn. However, your income determines:

  • Plan length: Below-median income = 3-year minimum plan. Above-median income = 5-year plan required.
  • Payment to unsecured creditors: Above-median filers must pay all projected disposable income to unsecured creditors for the full 5-year plan period.
  • Feasibility: You must show the court that your income is sufficient to fund the plan -- paying secured creditors, priority debts, and at least something to unsecured creditors.

Below Median Income

  • Minimum plan: 3 years
  • Can choose up to 5 years
  • Pay at least as much as Chapter 7 liquidation value
  • More flexibility on unsecured creditor payments

Above Median Income

  • Plan must be 5 years
  • All projected disposable income goes to plan
  • Expenses limited to IRS standards
  • Higher payments to unsecured creditors

Prior Filing Bars

Section 1328(f)(1) -- Prior Chapter 7 Discharge

You must wait 4 years from the filing date of a prior case in which you received a Chapter 7 discharge before you can receive a Chapter 13 discharge. You can file the Chapter 13 case sooner (to use the automatic stay to protect property), but you cannot receive a discharge until 4 years have passed.

Section 1328(f)(2) -- Prior Chapter 13 Discharge

You must wait 2 years from the filing date of a prior case in which you received a Chapter 13 discharge. Again, you can file sooner but cannot receive the discharge until 2 years have elapsed.

Section 109(g) -- Prior Dismissal

If a case was dismissed within the past 180 days for willful failure to comply with court orders or because you sought dismissal after a creditor filed a motion for relief from stay, you cannot file any bankruptcy case for 180 days.

Check Your Eligibility -- Free 1328(f) Screener

Who Cannot File Chapter 13

Kansas City Chapter 13 Statistics

W.D. Mo. (Missouri Side)

  • Chapter 13 cases filed (2008-2024): 46,548
  • Dismissal rate: 40.4%
  • Average plan payment: varies by income
  • Trustee: Jan Hamilton

D. Kan. (Kansas Side)

  • Chapter 13 cases filed (2008-2024): 44,949
  • Dismissal rate: 31.4%
  • Average plan payment: varies by income
  • Better completion rates than MO side

The significantly higher dismissal rate in the Western District of Missouri means strong plan preparation and reliable income are especially important for MO-side filers.

Frequently Asked Questions

What are the debt limits for Chapter 13?

$2,750,000 in total combined secured and unsecured noncontingent, liquidated debts. This replaced the old separate limits. Most KC filers are within this threshold.

Do I need regular income to file Chapter 13?

Yes. Regular income includes wages, self-employment, pension, Social Security, disability, rental income, and support from family. It must be stable enough to fund plan payments.

Is there a means test for Chapter 13?

No. Anyone with regular income and debts within limits can file. However, your income level determines whether your plan is 3 or 5 years and how much goes to unsecured creditors.

Can I file Chapter 13 after a prior bankruptcy?

Yes, with waiting periods. 4 years after a Chapter 7 discharge, 2 years after a Chapter 13 discharge. You can file sooner -- the bar is on receiving the discharge. Check your timeline.

Can a business file Chapter 13?

Only individuals. Corporations, LLCs, and partnerships must use Chapter 11. However, sole proprietors can include business debts in a Chapter 13 plan.

What is the difference between 3-year and 5-year plans?

Below-median income: minimum 3-year plan, can extend to 5 years. Above-median income: must be 5 years, all projected disposable income goes to unsecured creditors.

Related Topics

Open Bankruptcy Project Network