The median income for families and individuals of the 50 states of the United States, including the District of Columbia, had undergone new statistical changes, which was published by the United States Census Bureau. The new changes in the median income made by the Census Bureau were applicable from November 2014. Do refer to the new numbers before filing for bankruptcy.
Is state median income important in bankruptcy?
The statistics of median income, for different family sizes, vary from state to state. If you’re planning to file for Chapter 7 bankruptcy, you may be required to pass the means test, depending upon the median income of each state. The means test analyses your income and expenditure and confirm your eligibility to repay a set amount of money to the creditors. In case you’re capable of repayment, you’ll be asked to apply for Chapter 13 bankruptcy, instead of Chapter 7.
Under the circumstances, where your income is less than the median income, you’ll automatically qualify for Chapter 7 bankruptcy without any need to give the means test, provided you fulfill the other eligibility criteria of Chapter 7 bankruptcy.
How to access the median income chart for bankruptcy?
A chart, enumerating each state’s median income for different family sizes and individuals, can be easily accessed on the U.S. Trustee Program’s website. The chart lists the median income for a family of two, family of three and a family of four. In case you have more than four members in your family, you can calculate your median income by adding $8,100 to the 4-person figure, for each extra person.
For more information on the mean test and median income, visit https://recoverylawgroup.com/ or contact 888-297-6203.