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New median income figures go into effect November 1, 2019

| Oct 24, 2019 | Bankruptcy, Chapter 7 vs Chapter 13, Firm News

The Department of Justice recently did its semiannual adjustments of the median income figures, which are effective in bankruptcy cases filed after November 1, 2019. 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: -$1,426 (from $58,443 to $57,017)
Two person household: -$79 (from $76,398 to $76,319)
Three person household: +$1,607 (from $94,312 to $95,919)
Four person household: +$413 (from $111,878 to $112,291)

The increase for additional household members above the first four is staying at $9,000.