Posted on Nov 04, 2013

Ever since October 17, 2005, bankruptcy filers have had to go through a process called "means testing."  This process can make it difficult for upper income people to file a chapter 7 to wipe out their debt rather than a chapter 13 repayment plan.  If your gross household income is under the median for your household size, you will have a much easier time of it.

These median incomes are adjusted periodically, and that is about to happen again November 15, 2013.  The good news is if you are a family of two or more, the amounts are going up.  If you are single or divorced, however, and are living alone, filing a chapter 7 could be a bit tougher as the median is going down! Here are the new numbers:

  • One person: $61,146 to $60,317
  • Two people: $69,697 to $70,150
  • Three people: $85,016 to $85,575
  • Four people: $103,786 to $103,946
  • 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.  The bottom line, though, is that if you are single and anywhere near the current median income figures, you should seriously consider filing right away.

If you are thinking about bankruptcy but are worried that you might not "qualify" for a chapter 7, call my Woodbury office at 856-432-4113 or contact me through this site for a free consultation to discuss your options.

If you are just looking for more information about bankruptcy, then download my free book,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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