Since the bankruptcy laws changed in 2005, means testing has been an important factor in whether someone can file a chapter 7 bankruptcy . Having a gross household income above the median could make your filing more problematic. Median incomes, however, can be a moving target, as they change periodically.
The last time this happened was on March 15 of this year, when all of the medians went up. Well, starting November 1, they are changing. But the interesting thing is, some of them are going up, while others are going down!
Here are the changes in the gross annual incomes:
- Household of 1: $59,060 to $60,322 (Increase of $1,262)
- Household of 2: $70,680 to $67,503 (decrease of $3,177)
- Household of 3: $85,573 to $84,896 (decrease of $677)
- Household of 4: $101,106 to $101,957 (Increase of $851)
These changes mean that married couples without children may well face a more difficult time in filing a chapter 7 bankruptcy. If you are a New Jerseyan thinking about taking this step, please call my office for a free consultation. Although this change could be significant, do not assume that you cannot file. Find out for sure if there is a fresh start in your future!