More Families Qualify for Chapter 7 Bankruptcy!

Great news for families needing to file bankruptcy in Fresno!  In order to qualify for a Chapter 7 bankruptcy, most families have to pass the "means test".  In very simple terms, the "means test" takes a family's income which is then reduced by certain expense allocation.  If a family's net income is less than the established guidelines, the family qualifies to file a chapter 7 bankruptcy.  If the income is higher than the set guidelines, then it becomes much more difficult to successfully complete a chapter 7 case. 
 The recent good news is that the median income guidelines were raised.  Thus, more families qualify for chapter 7 bankruptcy.  If you are single, the new median family income is $48,415.  It used to be $47,433.  A family of 2 is allowed $63,030.  It was $61,752.  A family of three is $67,401.  It was $66,034.  A family of four is now allowed $75,656.  It used to be $74,122.  If you have a larger family, add $8,100 for each member in excess of 4.  You can view the guideline table at the United States Department of Justice's website: http://www.justice.gov/ust/eo/bapcpa/meanstesting.htm
Using the means test properly is important to a successful outcome.  About two years ago, I had a family that did not qualify under the means test.  However, the wife was pregnant.  I waited to file their case until after their baby was born.  Their family size increased by 1.  Thus, I was able to use a higher median income and they passed the means test. 
The new "means test" data changes frequently.  These numbers should be good until November 1, 2013.

photo: http://www.flickr.com/photos/evilerin/