Kentucky Bankruptcy: What Is The Means Test?

If you have decided that bankruptcy may be an option for you then you must also complete a means test to help you decide whether you qualify for Chapter 7 or if you will need to file Chapter 13

What is the Means Test in Kentucky?

The means test is not something to stress over. There are no right or wrong answers. The purpose of the means test is simply to look at your personal income and compare it to the state median in order to see if Chapter 7 bankruptcy is an option.

  • If your median monthly income is lower than the state's median for your household, or if your disposable income is insufficient to pay off your debts, then you qualify for Chapter 7. 
  • If your median monthly income is above the state's median, then you may need to file for Chapter 13 instead

Chapter 7 is primarily for low-income filers who cannot afford to repay debts under Chapter 13. However, if you are currently not eligible for Chapter 7 due to your income, but anticipate your income to decrease in the future, you can consider waiting until you qualify to file. An attorney can advise you on the ideal time to file based on your situation.   

Kentucky's Median Income Levels by Household (2021)

In Kentucky, here is the current median monthly income based on household size as of 2021:

  • $4,137.17 for a household of 1
  • $4,918.08 for a household of 2
  • $5,691.08 for a household of 3
  • $6,885.50 for a household of 4
  • $7,635.50 for a household of 5

Questions About Qualifying for Chapter 7?

If you are interested in filing for Chapter 7 and are not sure if you qualify based on the Means Test, contact our team for help. One of our experienced bankruptcy law attorneys can review the specific details of your financial situation and assist you in pursuing the option that can help you achieve financial freedome.

Request a free consultation with one of our attorneys today.