New Median Income Numbers

New Median Income Numbers

The nation is a bit poorer these days. If you’re considering whether or not filing bankruptcy is a solution for your family you should know that this fact will soon impact you. You may wish to before the end of the month when new median income numbers take hold.

These new numbers for median income apply to cases filed after November 1, 2009. The new numbers are LOWER overall by a few hundred dollars annually, and as a result you may not be able to file Chapter 7 if your median income is too high.

Calculation of median income is one of the most important things your attorney will do for you. The numbers have to survive the scrutiny of the Trustee and your creditors. Hire someone you trust to do this calculation for you. You’ll want to know that you won’t be facing the threat of dismissal or conversion because your means test contains errors.

Now, here’s the skinny:
After November 1, 2009, to file Chapter 7, or to file a Chapter 13 with a 3 year payment plan, the median income for your household size must be lower than the number listed below.

Household size of 1 –$40,691 (was $40,760).
Household size of 2 –$55,245 (was $54,054).
Household size of 3 –$61,104 (was $61,959).
Household size of 4 –$68,502 (was $71,554).

Some sources of income count–unemployment and social security do not.

There are other wrinkles and pitfalls to watch out for. Watch out.