U.S. Trustee’s Office Announces New Median Income Requirements as of April, 1, 2017
The United States Trustee’s office recently announced that the Median Income figures have been adjusted and becoming effective as of April 1, 2017., and will apply to cases filed on or after May 1, 2017.
When consulting with potential clients, I am often asked “What are the income limitations in order to qualify to file for Bankruptcy?” This question can be responded to in multiple ways depending upon which Chapter of Bankruptcy that one is looking to file.
However mostly, potential clients are inquiring as to a Chapter 7 Bankruptcy filing. Chapter 7 Bankruptcy filings are analyzed under the 707(b) of the Bankruptcy Code or otherwise known as the “Means Test.” The Means Test compares a Debtor’s income to the Bureau of Census quarterly report of the median income for Florida households. A Debtor’s current monthly income (CMI) will be calculated to determine whether it is greater or less than the applicable median income in their geographical area.
The Bureau of Census periodically updates the median income for Florida households. Effective April 1, 2017, for cases filed on or before May 1, 2017, the Bureau of Census has updated their figures once again. With the most recent updates, the Bureau of Census has both increased and decreased the median income based upon household size.
The changes are as follows:
However slight these changes may seem, they can actually be significant in making the difference between qualifying or not qualifying for a Chapter 7 Bankruptcy under the Means Test. The Means Test can be complicated as there are many factors that are considered when conducting the analysis. If you are considering filing for bankruptcy, you should consult with a bankruptcy attorney regarding this matter.
Contact Our Orlando Bankruptcy Attorney
Our Orlando bankruptcy attorney has extensive experience with the various complicating factors as it relates to the Means Testwork, and work closely with clients to determine eligibilit . If you want to learn more about your eligibility, we would be glad to sit down with you to discuss this related matter, as well as all your different options as it relates to your specific goals and needs.