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Means Test median Income Rises April 1, 2013

The median income of New Yorkers has been going up, and so will the median income for "Means Test" purposes in bankruptcy. The means test of chapter 7, and the disposable income test of chapter 13 compare the household income of the bankruptcy debtor from the previous six months to the median income of a similarly-sized family in the state where they live.

Twice a year these figures are adjusted, as incomes rise or fall. The amounts were last adjusted November 1, 2012. Reviewing the last five adjustments shows that median income has risen and fallen in the past two years, following no particular pattern:

Single working person:
April 1, 2013: $47,790
Nov. 1, 2012:  $46,821
May 1, 2012:   $47,381
Nov. 1, 2011:  $45,931
Mar. 1, 2011:  $46,295

Family of 2:
April 1, 2013: $59,308
Nov. 1, 2012:  $58,106
May 1, 2012:   $57,884
Nov. 1, 2011:  $56,113
Mar. 1, 2011:  $57,777

Family of 3:
April 1, 2013: $69,052
Nov. 1, 2012:  $67,652
May 1, 2012:   $69,066
Nov. 1, 2011:  $66,953
Mar. 1, 2011:  $68,396

Family of 4:
April 1, 2013: $83,209
Nov. 1, 2012:  $81,522
May 1, 2012:  $83,775
Nov. 1, 2011:  $81,212
Mar. 1, 2011:  $83,942

What if your family size is larger than four? In the real world, median family income starts to decline with larger families, but the bankruptcy means test gives a break here. A fixed amount is added to the annual median income figure for each family member beyond four. On April 1, 2013, thgat fixed amount increases from $7,500 to $8,100. So, for means test purposes, the median income of a family of six is considered to be $99,409.

If you live in the Greater Rochester area, and have a household income higher than the median income in New York State, and if you are thinking of filing bankruptcy, you will need experienced and thoughtful advise as to your bankruptcy options. You may contact me for a phone consultation, at no charge, at scribnerbankruptcylaw.com.

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Peter R. Scribner, Esq | 1110 Park Avenue | Rochester, New York 14610
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