The U.S. Trustee’s Office has announced new median income figures to go into effect on May 1, 2018. These income figures will become part of the bankruptcy means test for chapter 7.
The new figures for Minnesota are: $54,613 for a one person household
$74,283 for a two person household
$87,811 for a three person household
$107,902 for a four person household
Why is this Important?
The new median income figures are important because they are used to determine whether a chapter 7 filer must complete the means test in order to be eligible for a chapter 7 discharge. If a chapter 7 debtor has annual household income less that the median, then he or she is automatically eligible for chapter 7.
In chapter 13, median income is used to determine the minimum length of the chapter 13 repayment plan. For debtors under the median, the repayment period is no less than three years; for debtors over the median, the repayment period is five years.
Discuss your concerns with a Minnesota Bankruptcy Lawyer who is professional, approachable, responsive, efficient and effective. Contact Brea Buettner-Stanchfield at The Buettner Law Group, LLC 612-377-5311 or e-mail now for a free consultation.