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Median Income Figures for Bankruptcy Means Test Increased

On Behalf of | Oct 23, 2014 | Bankruptcy, Chapter 13, Chapter 7, Firm News

The United States Trustee just announced that effective November 1, the median income figures will increase. The median income is the figure that half of the people with that household size are above it, and half are below. Debtors who are below the median income level are pretty much automatically qualified. Above median debtors are not disqualifed, they just need to go through an additional step called the means test, which is more work for the debtors and attorney, and they need to pass the means test to qualify for chapter 7.

Income for purposes of the means test is calculated on an annual basis, by taking the prior six months, excluding the month of filing, and doubling it.

Here are the current and new figures for Minnesota for various household sizes:

Until Oct 31, 2014             After Nov 1, 2014

HH=1                     $49,592                               $50,121

HH=2                     $65,398                               $65,503

HH=3                     $78,715                               $79,750

HH=4                     $92,277                                $93,294

Each extra person add $8,100                            $8,100