The US Department of Justice has released the updated Census Bureau Median Family Income By Family Size. The numbers are very important for those filing bankruptcy as they are critical in determining whether you qualify for bankruptcy based on the Means Test, also known as Bankruptcy Forms 122A-1 and 122C-1.
For California:
1 earner: $62,938
2 people: $83,435
3 people: $92,735
4 people: $106,530
If you’re wondering why it switches from the word “earner” to “people”, essentially they are talking about the number of people in your household. What constitutes “household” is another story altogether, but for simplicity, if you’re a single individual and you live alone, you’d compare your salary/income (annualized), to whether or not you make more or less than “1 earner: $62,938”. If you are married and have one child, you would be a household of three, and therefore you would look at whether you and your spouse combined make more than $92,735 (3 people).
If you’re interested in seeing what the income level are in other states, CLICK HERE to download the entire data sheet. If you over the income levels, you will have to go through preparing the entire Means Test which in some cases can be complex and may mean that you have to file a Chapter 13.
I recommend hiring us to do your bankruptcy for you to avoid any pitfalls! Call us today for your now obligation, free consultation.
