What does a median income mean in a chapter 7 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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What does a median income mean in a chapter 7 bankruptcy?

I was looking into chapter 7 bankruptcy, and I keep seeing rules about my "median income." What does median income mean? How does it affect my ability for file for chapter 7? I currently make $42,000 per year, which I don't think is exceptionally high, but now I'm worried that I can't file bankruptcy because I have a job! I have so much debt from my younger days when I was stupid and ran up credit card debt, I should get the same opportunity to file for bankruptcy as anyone else.

Answer By Ron Salas
The Salas Firm
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If that is your total income you should be fine depending on the county you live in. For example in Larimer county, the median income for a single person is right at $47,000.00.

Answer Applies to: Colorado
Replied: 9/29/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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The median income in california for a single person is approximately $48000 per year. If you make $42000 then you are under the median income and you can file ch 7.

Answer Applies to: California
Replied: 9/23/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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The means test in Colorado sets the median family income for a family of one at $48,598, therefore (assuming you are not married) your income level will not prohibit you from filing a chapter 7 bankruptcy.

Answer Applies to: Colorado
Replied: 9/22/2011

Bankruptcy Law office of Bill Rubendall
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Median income is a statistic used in calculating eligibility to file chapter 7. It is defined as an annual amount of income for which half the person of your family size makes more than and half make less than. For example, an individual with no dependents would be below the median income in they make $42,000 a year. An individual making $70,000 would be above the median. You can still quality for chapter 7 if you are above the median if you have enough deductions in the calculation. You should consult an attorney to find out if you qualify for chapter 7 or chapter 13 in the alternative.

Answer Applies to: California
Replied: 9/21/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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At 42k you have no worries in California. Getting the form filled out right might be an issue....

Answer Applies to: California
Replied: 9/21/2011

Mercado & Hartung, PLLC
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It's the median income in your state for the number of people in your household. You can find yours on the US Trustee's website.

Answer Applies to: Washington
Replied: 9/21/2011

Law Office of John C. Farrell, Jr.
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You should consult with a bankruptcy attorney to see if you qualify. The median test is complicated to explain is this forum. You can probably look into debt settlement as well. That way you can settle the debt for less than what is owed.

Answer Applies to: Massachusetts
Replied: 9/21/2011

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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Depending on where you live in New York, your "median income" will be considered a little different. Also, your median income changes depending on how many children you have and how many people are supported in your household. If your income is higher than the median income for your area, then your attorney can try to further qualify you for Chapter 7 by applying the "means test" to your current income. If your gross income is $42,000 per year and you are single person, then you would still qualify in most of the downstate counties.

Answer Applies to: New York
Replied: 9/21/2011

Law Office of Lynnmarie A. Johnson
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The median income is used for the Current Means Income test. It is obtainable at the US Bankruptcy Trustee website. It is the "average" income in your area, for example right now the median income for one person in MI is $42,562. It is the starting point to see if your filing is presuming to not be abusive, or if you have disposable income that should mean you file a Ch 13 rather than 13.

Answer Applies to: Michigan
Replied: 9/21/2011

Ashman Law Office
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Bankruptcy involves a means test. You need a lawyer to properly calculate it as it is complex. You can initially fail by making too much, but may at that income level possibly still pass using legitimate adjustments a lawyer will understand.

Answer Applies to: Georgia
Replied: 9/20/2011

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