Median Income Table Revised Downward for Bankruptcy Means Test

by Ed Williams on October 24, 2012

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Median Income Table Revised Downward by U.S. Department of Justice

Effective November 1, 2012, the US Department of Justice has revised the median income table, upon which the Chapters 7 & 13 Means Test is based.  Reflecting a decrease in median family income throughout theUnited States, the decrease amounts to about 2%.  The exact decrease varies state to state and with family size.

For example, in Connecticut, the median decreases by 2.4% for a household size of 1 and by 2.1% for a household of 4. Florida’s decrease is 2.3% and 1.2% respectively. New York’s is 1.2% and 2.7%.

South Carolina’s downward revision is 1.0% for family of 1 and 7.4% for family of 4.  The large decrease for a family of 4 appears to reverse a large increase in the prior table, possibly reflecting an error in the prior period amount.

For complete table of all U.S. States and Territories, click here.

The net result of this change is that it will be slightly more difficult for debtors to qualify for a chapter 7 bankruptcy discharge.

Ed Williams is a Virtual Bankruptcy Paralegal with At The Beach Paralegal Services.  At The Beach Paralegal Services provides bankruptcy petition preparation and services for bankruptcy attorneys and law firms nationwide.

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