State Median Income Figures Change for Bankruptcy Means Test

On April 1, 2013, the state median income figures for the bankruptcy means test were adjusted.  In most states, the new figures make it slightly more easy for people to qualify for Chapter 7 bankruptcy.

What Is the Means Test?

In order to qualify for Chapter 7 bankruptcy, your income must be below the median income for your state or, you must pass the bankruptcy “means test” (a series of calculations based on your income and certain expenses designed to determine if you could realistically fund a Chapter 13 repayment plan.)

For details on how the means test works and the role it plays in both Chapter 7 and Chapter 13 bankruptcy, visit Nolo’s Bankrutpcy Means Test area.

State Median Income Figures Adjusted April 1, 2013

On April 1, 2013, new state median income figures were released. In most states, (California being a notable exception), the state median income increased — often by a thousand dollars or so per year.  This means that you can earn slightly more money, and still qualify for Chapter 7 bankruptcy without having to take the means test.

You can find the state median income figures here:  http://www.justice.gov/ust/eo/bapcpa/20130401/bci_data/median_income_table.htm