Posted on Oct 14, 2014

One of the common myths about bankruptcy is that you can make too much money to file. That is partially true when it comes to means testing, as failing that test can disqualify you for a chapter 7 filing.

The first hurdle to the test is staying under the median income for your state for your family size. These income levels are adjusted periodically to account for inflation, and are about to change again as of November 1, 2014.

This time is a “good news; bad news” situation, depending on your household size. Households of one or two will see the median go down; those in larger households will see it go up. This can make single people, couples without children, or empty nesters at the borderline at risk of failing the test if they file after Halloween. Trick or treat!

Here are the new numbers:

  • One person: $61,200 to $60,265
  • Two people: $71,178 to $70,845
  • Three people: $86,828 to $89,413
  • Four people: $105,469 to $105,737
  • Each person over four: $8,100

Even if you are still over the median for gross income, though, you may still be able to file for chapter 7 if your expenses under means testing show that you would not have enough money to pay your creditors after your bills have been paid.

So What Do I Do?

If you are at the borderline, it might be better to file this month! If you live in South Jersey and are considering filing bankruptcy, please feel free to call my office at 856-432-4113 or contact me through this site for a free consultation in my Woodbury office to discuss your case.

If you are looking for more information about bankruptcy, Top Questions People Ask About Filing Bankruptcy in New Jersey.

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Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.


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