Means Test Numbers
New Bankruptcy Means Test Income Numbers Effective November 1, 2012.
The new income numbers are used to complete the Means Test and determine whether or not a person qualifies to file Chapter 7 bankruptcy in Illinois and other states will be changing.
The United States Trustee Program has posted “Census Bureau Median Family Income By Family Size” figures that apply to bankruptcy cases filed on or after November 1, 2012.
The new annual median income figures for Illinois households are:
- Single Person $46,500
- 2 People $58,647
- 3 People $67,328
- 4 People $79,138
- * Add $7,500 for each person in excess of 4
If your gross household income falls below the applicable numbers, you pass the Means Test and qualify for a Chapter 7 bankruptcy.
If your household income exceeds these figures, you may still qualify for Chapter 7 bankruptcy if you have enough allowable expense deductions to offset your above median income or if the projected amount of disposable income would pay less than 25% of your total unsecured debt. Also, if your debt is primarily business debt then you do not even have to do the means test and automatically qualify for Chapter 7 bankruptcy.
A person who fails the Means Test and does not qualify to file Chapter 7 bankruptcy may choose to file a Chapter 13 bankruptcy instead.
You may also want to read: Qualifying for Bankruptcy and Business Debt and the Means Test
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