31 Aug Bankruptcy Income Guidelines Change October 1
The income guidelines for bankruptcy eligibility are changing for cases filed October 1, 2008. The census bureau has announced updated median income figures, which are expected to be adopted by the U.S. Trustee for the bankruptcy means test.
If Kansas is typical, the income guidelines increase slightly. For example, the guideline for one Kansas earner goes up $894 from $38,594 to $39,488 annually. The guidline for a four person family increases from $69, 831 to $71,867.
Debtors filing bankruptcy fill out a “means test” form to determine their ability to pay their debts. They use the “applicable median family income” for their state and family size. The U.S. Census Bureau publishes the income figures annually. In addition, the numbers are adjusted for changes in the consumer price index.
Here are the new median income figures starting October 1 by state and family size in spreadsheet format. Here is a link to the median income figures currently in force.
You may read more about the means test on the Bankruptcy Law Network.Brett Weiss explains you may still be eligible for a chapter 7 bankruptcy dispute even if you have greater than median income.Craig Andresen explains the documents required to fill out the means test form and Jed Berliner gives tricks and traps of means testing.
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