Justice Department Announces New Means Testing Figures

Justice Department Announces New Means Testing Figures

The United States Trustee Program, a component of the Department of Justice, recently released new median income information to be used in determining bankruptcy eligibility. The bankruptcy means test is meant to identify individuals and families with higher incomes and encourage repayment of debts. Debtors with a family income above their state’s median income for that family size must complete additional testing to qualify for Chapter 7 bankruptcy or to calculate monthly disposable income paid during Chapter 13. Those below the state median income are immediately eligible for Chapter 7 bankruptcy.

In many states the median income levels have dropped, making it easier to avoid payment to unsecured creditors in either Chapter 7 or Chapter 13 bankruptcy. The new state median incomes per family size are listed below which is found at the UST website.

FAMILY SIZE
STATE 1 EARNER 2 PEOPLE PEOPLE PEOPLE *
ALABAMA $39,768 $48,770 $51,621 $66,434
ALASKA $53,489 $76,118 $82,377 $85,581
ARIZONA $41,993 $55,022 $56,503 $64,604
ARKANSAS $37,081 $46,495 $50,755 $58,333
CALIFORNIA $47,798 $62,009 $66,618 $75,111
COLORADO $50,242 $65,701 $71,138 $83,330
CONNECTICUT $60,403 $72,761 $86,254 $104,670
DELAWARE $51,711 $62,350 $68,439 $85,806
DISTRICT OF COLUMBIA $45,793 $89,233 $89,233 $101,582
FLORIDA $41,334 $51,839 $53,952 $63,196
GEORGIA $40,631 $52,610 $55,829 $68,085
HAWAII $52,975 $65,708 $80,618 $83,538
IDAHO $40,303 $51,105 $52,366 $59,971
ILLINOIS $47,536 $61,253 $70,014 $81,680
INDIANA $41,250 $51,926 $61,021 $71,113
IOWA $42,346 $58,057 $64,027 $76,173
KANSAS $43,793 $57,502 $65,394 $72,453
KENTUCKY $40,633 $47,788 $53,639 $67,839
LOUISIANA $38,639 $49,078 $53,768 $68,890
MAINE $40,560 $53,979 $61,702 $72,841
MARYLAND $58,202 $75,992 $86,655 $105,685
MASSACHUSETTS $55,794 $69,569 $84,269 $105,299
MICHIGAN $44,072 $52,540 $61,110 $74,863
MINNESOTA $48,876 $64,454 $77,579 $90,945
MISSISSIPPI $35,306 $44,149 $44,149 $51,140
MISSOURI $40,994 $51,421 $57,468 $72,230
MONTANA $40,419 $55,715 $60,107 $69,954
NEBRASKA $41,866 $59,564 $61,380 $73,402
NEVADA $41,054 $55,349 $55,349 $61,732
NEW HAMPSHIRE $52,588 $67,408 $82,656 $97,499
NEW JERSEY $60,317 $70,150 $85,575 $103,946
NEW MEXICO $38,914 $49,538 $50,548 $55,184
NEW YORK $47,414 $59,631 $70,151 $83,614
NORTH CAROLINA $40,736 $51,662 $55,049 $66,147
NORTH DAKOTA $44,098 $61,172 $72,041 $87,154
OHIO $43,057 $53,075 $60,679 $76,381
OKLAHOMA $39,749 $51,097 $55,641 $64,916
OREGON $44,779 $55,568 $60,693 $70,812
PENNSYLVANIA $47,119 $55,872 $70,092 $81,961
RHODE ISLAND $48,651 $61,510 $74,720 $91,592
SOUTH CAROLINA $39,301 $48,891 $54,010 $62,490
SOUTH DAKOTA $39,040 $56,899 $60,259 $75,267
TENNESSEE $39,759 $48,053 $56,042 $62,805
TEXAS $41,354 $56,296 $59,567 $68,566
UTAH $49,347 $57,734 $65,311 $70,176
VERMONT $43,772 $60,346 $67,388 $79,128
VIRGINIA $51,817 $65,510 $75,774 $90,945
WASHINGTON $52,996 $63,409 $72,286 $84,970
WEST VIRGINIA $42,415 $45,284 $54,229 $65,442
WISCONSIN $43,958 $57,903 $67,808 $80,198
WYOMING $51,116 $65,237 $70,319 $76,120
Add $8,100 for each individual in excess of 4.
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