Did You Not Qualify For Chapter 7? Changes To The Means Test May Affect You
Have you looked at bankruptcy and been told you make too much to file under Chapter 7? As of November 1, 2020, the thresholds for means testing in bankruptcies will change and you could benefit.
The changes to the median yearly income thresholds vary. The increase varies from $2,000 to just under $4,000 per year depending on household size. Potential filers who were considering this process who came just short of qualifying may want to review their options again with these new median figures. You may be able to file under Chapter 7 instead of Chapter 13.
| Household Size | Median Annual Income (May 1, 2020-October 31, 2020) | Median Annual Income (November 1, 2020-Onward) |
|---|---|---|
| 1 | $60,360.00 | $62,628.00 |
| 2 | $79,271.00 | $82,418.04 |
| 3 | $88,235.00 | $91,605.00 |
| 4 | $101,315.00 | $105,228.00 |
| 5 | $110,315.00 | $114,228.00 |
| 6 | $119,315.00 | $123,231.96 |
| 7 | $128,315.00 | $132,228.00 |
| 8 | $137,315.00 | $141,228.00 |
Were you previously advised you could not file a Chapter 7 bankruptcy because you make a little too much to qualify? Your options may have changed with this recent update to the means testing thresholds.
If you have any questions about filing bankruptcy please feel free to reach out to your Modesto bankruptcy attorney at 209-438-4990.
Categorized in: Chapter 7
