Increased Michigan Median Income Numbers = Increased Chapter 7 Eligibility Challenges
The Office of the US Trustee has released its new bankruptcy means test numbers for all case filed on or after April 1, 2014. These numbers reflect the median incomes for households of various sizes in each state. For Michigan, the median income averages have increased slightly from the past numbers issued November 1, 2013.
What Do Increased Median Household Income Averages Mean?
These numbers are derived from US Census Bureau data. They vary by state and by household size, and each state’s median income for a particular household’s size represents, in the Chapter 7 bankruptcy means test that determines whether a person is income eligible for Chapter 7 or whether they must file a Chapter 13 bankruptcy, the maximum amount of income the household can earn in order to file a Chapter 7.
For more on the particulars of the bankruptcy means test, the mathematical formula which utilizes these median numbers to make this determination, click here.
Michigan’s New Bankruptcy Means Test Numbers
For cases filed on or after April 1, 2014, the new means test median income numbers are:
- Household of 1: $44,718.00
- Household of 2: $53,310.00
- Household of 3: $62,005.00
- Household of 4: $75,960.00
- Households above 4: Add $7500.00 to the “Household of 4” median for each additional household member.
What Has Changed?
These numbers present a slight increase from the prior median income numbers. That means that it will be slightly more difficult to meet the means test eligibility standard for Chapter 7 bankruptcy going forward.
The Bankruptcy Means Test: The Bottom Line
The bottom line with regard to the means test is that you should not glance at these numbers and simply assume you do not qualify for bankruptcy if your household’s total income is higher than the appropriate median for your household size. Neither should you assume that you do qualify. If you are considering filing for bankruptcy, you should consult an experienced bankruptcy attorney to discuss your income, your household, and your Chapter 7 eligibility. Online “means test calculators” do not do just to the subtleties of applying various deductions, of the definition of what is and what is not a household, and other measures best analyzed by an experienced bankruptcy lawyer.
If you are a Michigan resident and would like to explore your options for a Chapter 7 or Chapter 13 bankruptcy with an experienced Michigan bankruptcy attorney, please contact us at (866) 674-2317 or click the button below to schedule a free, initial consultation.
If you enjoyed reading “New Michigan Bankruptcy Means Test Numbers for November 15, 2013,” please browse our other articles on our main Michigan Bankruptcy Blog.Tags: chapter 7, detroit bankruptcy lawyer, Income in Bankruptcy, means test, Michigan bankruptcy attorney
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