Chapter 7 Eligibility in Kansas City

Not everyone qualifies for Chapter 7. The means test, prior filing bars, and other rules determine your eligibility. This guide explains the requirements for filers on both the Missouri and Kansas sides of Kansas City.

Quick answer: You qualify for Chapter 7 if your household income is below the state median for your household size (automatic pass), your debts are primarily business debts (means test does not apply), or you pass the full means test calculation. Prior filing bars: 8 years between Chapter 7 discharges, 6 years after a Chapter 13 discharge (with exceptions).

The Means Test Explained

The means test (11 U.S.C. section 707(b)) is a two-part income calculation that determines whether you can file Chapter 7.

Part 1: Median Income Comparison

Compare your household's average monthly income over the past 6 full calendar months to the median income for your state and household size. If you are below the median, you pass automatically and qualify for Chapter 7. No further calculation is needed.

Part 2: Disposable Income Calculation

If your income is above the median, you must complete Form 122A-2. This subtracts allowable expenses from your income:

  • IRS National Standards for food, clothing, personal care
  • IRS Local Standards for housing and transportation (based on KC area)
  • Actual secured debt payments (mortgage, car loan)
  • Actual tax obligations, insurance, child care, health care
  • Charitable contributions up to 15% of gross income

If your remaining monthly disposable income is below approximately $156/month (or the total over 60 months is less than $9,375), you pass Part 2 and qualify for Chapter 7.

2026 Median Income: Missouri vs. Kansas

Household SizeMissouriKansas
1 person$56,847$57,925
2 persons$72,036$75,698
3 persons$85,023$89,104
4 persons$104,670$108,412
Each additional+$9,900+$9,900

Kansas median incomes are generally higher, meaning Kansas-side filers have a slightly higher threshold to qualify automatically. See the full income limits page for details.

Who Is Exempt from the Means Test?

  • Primarily business debts: If more than 50% of your total debt was incurred for business purposes (not consumer debt), the means test does not apply. You qualify for Chapter 7 regardless of income.
  • Disabled veterans: Veterans whose debts were incurred primarily while on active duty or performing homeland defense are exempt from the means test.
  • National Guard and Reservists: Members called to active duty or homeland defense for at least 90 days are exempt, as long as they file within the applicable period after release.

These exemptions can make a significant difference. For example, a small business owner in Kansas City with $200,000 in income but primarily business debts can file Chapter 7 without taking the means test.

Prior Filing Bars

Even if you pass the means test, prior bankruptcies can prevent a Chapter 7 discharge:

Section 727(a)(8) -- Prior Chapter 7 Discharge

You must wait 8 years between Chapter 7 discharge dates. The clock runs from the filing date of the prior case, not the discharge date. If your prior Chapter 7 was filed less than 8 years ago, you cannot receive a Chapter 7 discharge.

Section 727(a)(9) / 1328(f) -- Prior Chapter 13 Discharge

You must wait 6 years after a Chapter 13 discharge before receiving a Chapter 7 discharge, unless you paid 100% of unsecured claims in the prior Chapter 13 plan, or you paid at least 70% of unsecured claims and the plan was proposed in good faith with best effort.

Section 109(g) -- Prior Dismissal

If your prior case was dismissed within the last 180 days due to willful failure to comply with court orders, appear before the court, or because you requested dismissal after a creditor sought relief from the stay, you may not file any bankruptcy for 180 days.

Check Your Eligibility -- Free 1328(f) Screener

Other Eligibility Requirements

Frequently Asked Questions

What is the means test for Chapter 7?

The means test compares your household income to the state median. Below median = automatic pass. Above median = a second calculation of allowable expenses. If disposable income is low enough, you still qualify. Full means test guide.

What are the 2026 income limits for Missouri and Kansas?

Missouri: 1-person $56,847, 2-person $72,036, 3-person $85,023, 4-person $104,670. Kansas: 1-person $57,925, 2-person $75,698, 3-person $89,104, 4-person $108,412. See full income limits.

Who is exempt from the means test?

Debtors whose debts are primarily business debts (over 50%), disabled veterans, and National Guard/Reservists called to active duty. These groups qualify regardless of income.

Can I file Chapter 7 after a prior bankruptcy?

Yes, with time limits. 8 years between Chapter 7 discharges (section 727(a)(8)). 6 years after a Chapter 13 discharge unless you paid 100% or 70%+ in good faith. Check your eligibility.

What happens if I fail the means test?

You complete Part 2 with allowable expense deductions. If you still fail, your options are Chapter 13 (no means test) or waiting until your income decreases. An attorney can identify expenses you may have overlooked.

Does Social Security income count for the means test?

No. Social Security benefits are excluded from the initial median income comparison under section 101(10A). However, they may be considered when calculating disposable income for a Chapter 13 plan.

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