How Can I Find My Median Income For Bankruptcy?
For those who are considering filing for bankruptcy, finding the laws of their states’ median income for bankruptcy is crucial. Finding bankruptcy lawyers in your state can help you with this process, as they are educated in the newest information on filing and know how those laws can apply to your situation. The United States government also regularly updates median income for bankruptcy filing for each state.
To find out if you qualify for chapter 7 bankruptcy without actually passing the means test, you must be below the required median income for the size of your family based on the gross income of your household during the last six months. This median income should then be multiplied by two. This means that your family may not qualify in July for chapter seven but may qualify in August because the income for your household may have increased. Simply find the current median income required by your state for a single person or a two person household, then add the required amount for each additional member in your household.
The median income for bankruptcy will also come into play if you are seeking chapter 13 bankruptcy, as your median income affects the means test and will eventually affect the payments that you will need to make during this type of bankruptcy. Each state will have a different median income requirement, and payments will be lowered for the debtor as they may not have the disposable income available to put towards their other bills if the money must be used for everyday living expenses. If you choose a chapter 13 bankruptcy in order to lower your monthly payments, it is a good idea to file when your income is the lowest it will be in a six month period. If your income will decrease in the future, it may be a good idea to wait a few months to file a bankruptcy case because you all will have lowered your median income for bankruptcy or even qualify for chapter 7.
Although filing for bankruptcy may be a difficult decision, a knowledgeable attorney can help you through the process. Finding your median income for bankruptcy could be the first step to a more stress-free life.