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Median income figures increase substantially

by | May 25, 2023 | Bankruptcy, Chapter 13, Chapter 7

The Department of Justice recently adjusted the median income figures, which are effective in bankruptcy cases filed after May 15. 2023. 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: +$5,309 (from $66,334 to $71,643)
Two person household: + $6,739 (from $84,207 to $90,946)
Three person household: + $8,467 (from $105,800  to $ 114,267)
Four person household: + $10,382 (from $130,852 to $ $141,324)

For each additional household member above four, add $9,900.