The New York Bankruptcy Median Income is important in determining whether you meet the requirements of the Means Test. A bankruptcy filer’s eligibility to file for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy is determined by the Means Test. Whether or not you pass the Means Test is based largely on your average household income. This is calculated by averaging your income for the past six months. By multiplying this figure by twelve, you will arrive at your annual median income. If you surpass the median income limit and your income has decreased significantly over the past six months, then filing a month or two later might bring your median income below the New York Bankruptcy median income. Your median income also determines the duration of your Chapter 13 bankruptcy payment plan, as well as what expense figures can be used.
New York Bankruptcy Median Income Per Household Is:
1 Member Household – $47,414.00
2 Member Household – $59,631.00
3 Member Household – $70,151.00
4 Member Household – $83,614.00
5 Member Household – $91,714.00
6 Member Household – $99,814.00
7 Member Household – $107,914.00
8 Member Household – $116,014.00
9 Member Household – $124,114.00
10 Member Household – $132,214.00
For those bankruptcy filers who earn above the New York median income, they will have to undergo additional parts of the Means Test to determine their eligibility to file a Chapter 13 bankruptcy and pay back a portion of their unsecured debt. In some cases, although an individual may earn below the median income and qualify for a Chapter 7 bankruptcy, it may not be the best option. For individuals who are attempting to keep valuable property, a Chapter 13 bankruptcy may be more beneficial. If you are trying to wipe out unsecured debt, then a Chapter 7 bankruptcy may be more effective.
Family median incomes for all 50 states are published by the Census Bureau every 18 months. Updated figures can be found on on the U.S Trustee’s website. Prior to 2010, the figures seemed to be going up, however, there have been instances of these numbers actually decreasing.