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New Median Income Figures Go Into Effect April 1, 2020

| Apr 2, 2020 | 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, 2020. 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: +$1,033 (from $57,017 to $58,050)
Two person household: +$1,383 (from $76,319 to $77,702)
Three person household: +$1,738 (from $95,919 to $97,657)
Four person household: +$2035 (from $112,291 to $114,326)

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