Missouri Median Income
Individuals who plan on filing Chapter 7 Bankruptcy must pass an income test. If you live in Missouri, the income test will compare your median income to other Missouri residents. If your median income is lower than other Missouri families (of similar size), you may be able to file Chapter 7 Bankruptcy. If your income is higher than other Missouri residents, you will have to pass additional means testing.
The goal of means testing is to determine if you have enough income after deducting your expenses to pay your debts. The means test will subtract certain expenses (house payment, car payment, child support, taxes owed and school tuition- up to $1650) from your gross income. If the amount remaining allows you to pay $6,000 or $100 per month toward your debt over the next 60 months, you may not be able to file Chapter 7 Bankruptcy. If you can not do this, but you could pay up to 25% of your disposable income toward debts over the next 60 months, you may not be able to file Chapter 7 Bankruptcy in Missouri.
Means testing can be complicated and the information offered above is very general in nature and should not be considered legal advice. It is important to talk to a Bankruptcy Attorney in Missouri to determine if you can file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.
State median data is provided by the United States Trustee Program. For the State of Missouri, after March 15, 2009, the median income for a single wage earner is $39,563 and for a family of two it is $51,612. For a family of three it is $58,473 and for a family of four it is $70,363.