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Median Incomes for Bankruptcy Going Up: Should You Wait to File?

Posted on Mar 10, 2011
Means testing in bankruptcy is designed to force more upper income people into a chapter 13 bankruptcy repayment plan.  This determination starts with whether a household's gross monthly income is over the state's median income.  These median income figures are adjusted periodically and make this bright line a moving target.  Well, the line is about to move again on March 15, 2011.  The last two times this happened, the figures went down.  Fortunately, this time they are going up.  Here are the changes in the gross monthly incomes:
  • Household of 1: $58,107 to $59,060 (Increase of $953)
  • Household of 2: $69,539 to $70,680 (Increase of $1,141)
  • Household of 3: $84,192 to $85,573 (Increase of $1,381)
  • Household of 4: $99,474 to $101,106 (Increase of $1,632)

This upward trend of median incomes should encourage anyone thinking about filing a chapter 7 bankruptcy to contact an attorney right away. If you are a New Jerseyan thinking about taking this step, please call my office for a free consultation.