New bankruptcy means test median income figures start April 1, 2014.

On April 1 it will get slightly easier for some middle income Americans to file for bankruptcy. That’s because the semi annual inflation adjustment for the Chapter 7 bankruptcy means test is increasing the median income figures for each state by approximately 1 1/2%.

The means test calculator on LegalConsumer.com has been updated with the new April 1, 2014 median income figures.

While the median income figures are supposed to be based on actual data, this semiannual update is just an across-the-board 1.47% increase for every family size, one through four.
Typically, when these numbers come out, some states go up, and some states go down. Not this time. Median income numbers for all states are rising by 1.47% on April 1.

That means that, no matter where you live, if on March 31 you fell just a half percent below the median income standard, you may well pass the means test as of April 1 because you are below the new median income standard.

For example:

Family of three living in Georgia with a median income of $56,000 a year would fall above the median standards being applied 31st, 2014, but would be below the median for a family of three for the new standards being applied April 1.

There is no way to be sure how many people fall this close to the line of median income who are considering bankruptcy.

About the semiannual means test inflation adjustment:
Twice a year, the administrative office of the US courts adjusts the means test median income figures that are used in form 22A — the means test form for Chapter 7 bankruptcy and Form 22C, the form that determines the length of your plan in Chapter 13, as well as your “projected disposable income” in a Chapter 13 bankruptcy. This year, the median income numbers are being revised April 1, and the national county-by-county expense standards will be revised May 1.

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