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New median income figures, effective April 1, 2018

| Apr 11, 2018 | Bankruptcy, Firm News

The Department of Justice recently did its semiannual adjustments of the median income figures, which are effective in bankruptcy cases filed after April 1, 2018. 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: +$1,183 (from $53,474 to $54,612)
Two person household: +$1,549 (from $72,734 to $74,283)
Three person household: +$1,832 (from $85,979 to $87,811)
Four person household: +$2,251 (from $105,651 to $107,902)

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