The U.S. Census Bureau’s Median Family Income figures changed on March 15, 2010. This means that anyone filing Chapter 7 bankruptcy in Massachusetts after March 15, 2010 will have to use the new Median Family Income for the Means Test.
The new median income is $53,315 for a single person, $69,204 for two people, $82,297 for three people, and $99,293 for a family of four. From November 1, 2009 to March 14, 2010, the Means Test median income in for a single person nearly $200 more than the new standard.
Since the implementation of the bankruptcy Means Test in 2005, this is perhaps the first time that the Census Bureau’s Median Family Income has decreased. Generally, the cost of living increases at a rate faster than people’s income. However, the downward slide of housing costs may contribute to this year’s decrease.
For most people filing bankruptcy, the $200 decrease in the median income should not be an issue. The majority of our clients for bankruptcy in Massachusetts have annual incomes significantly below the median figures.
Learn how the Census Bureau derives median income figures by reading their article on the American Community Survey.