The Right Attorney
When Legal Matters Become Personal

Median income figures get upward adjustment

| Oct 7, 2016 | Bankruptcy, Firm News

Recently released census bureau figures show that the median income figures will increase for bankruptcy cases filed after November 1. These figures are typically adjusted every November and May. The median income is a function of household size, which is basically whoever lives in the house at the time of filing. Being under the median is important in bankruptcy because it virtually assures qualification for chapter 7. A below-median chapter 13 debtor has the option of finishing their plan in three years. Debtors who are over the median need to go through the means test to see if they qualify for chapter 7.

The income is based on doubling the six months prior to filing, not including the month of filing.

Here are current and new figures in Minnesota (gross income):

  • One person household: +$867 (from $51,260 to $52,127)
  • Two person household: +$1,410 (from $68,596 to $70,006)
  • Three person household: +$3,074 (from $80,900 to $83,974)
  • Four person household: +$1,930 (from $98,564 to $100,494)

The increase for additional household members above the first four remains the same, at $8,400.