No. of People in Household
Gross Monthly Income
Annual Gross Income
|9 and above||Add $625 per person||Add $7500 per person|
Everyone asks the question, “Do I qualify for bankruptcy?” This is more complex than you might imagine and it’s not simply a yes or no question. I’ve answered this question in a prior article, Do You Have Too Much Income For Chapter 7? What we’re really talking about is this Means Test, which simply put, is a determination of whether your income is at or below the median household income for households of your size? Well, these numbers constantly change and they’re about to increase effective May 1st.
The table shown above is the new median household income figures for California effective May 1st. The good news is that our income is increasing. Using the table above, you would first locate the number of people in your household, then look to see if your gross income is below that figure. If it is, you automatically qualify to file under Chapter 7 of the Bankruptcy Code to have your debts discharged.
Don’t give up if you’re income is greater than these figures. If you make more than what is shown in the tables, it’s important to continue the analysis and more important to seek the advice of an attorney to help determine whether you qualify for Chapter 7, or whether you may look to Chapter 13 or if bankruptcy is even right for you.