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New median income figures go into effect November 1, 2017

| Oct 18, 2017 | Bankruptcy, Firm News

The Department of Justice recently did its semiannual adjustments of the median income figures, which are effective in bankruptcy case is filed after November 1, 2017. The median income is an important figure, as debtors below that figure are almost always assured a chapter 7 discharge. For chapter 13 debtors, being under the median is helpful as it permits the debtor to complete their plan payments within 36 months.

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

One person household: +$689 (from $52,785 to $53,474)
Two person household: +$1,845 (from $70,889 to $72,734)
Three person household: +$946 (from $85,033 to $85,979)
Four person household: +$3,889 (from $101,762 to $105,651)

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