November 1, 2023 Median Income use in bankruptcy in Minneapolis, Minnesota
The median income for your household size is used in bankruptcy to determine whether you qualify for a Chapter 7 or a Chapter 13 and whether you are a three-year or a five-year Chapter 13 bankruptcy.
The median income differs by each state and can be found in this chart:
For cases filed on or after November 1, 2023 Minnesota’s household median income is:
Household of 1 $69,460
Household of 2 $90,144
Household of 3 $112,783
Household of 4 $136,293
Household income has decreased with each household size from months prior, with the updated November 1, 2023 amounts.
What happens if you are now slightly above the median income for your household size?
Well, if you are filing a Chapter 13 bankruptcy, you now will look at a five-year plan, instead of three years. If you are above the median income and want to try Chapter 7 still, you could look at doing a long-form means test, where you try to rebut the presumption of abuse (for being over the median). Your attorney will walk you through the pros and cons of this and should be able to give you an idea of whether it will likely go through or not.
The US Trustee’s office oversees all bankruptcy cases, but Chapter 7 over median income cases are heavily scrutinized. If you are above the median income and trying chapter 7, you may be subject to an audit. This is where the US Trustee’s office combed through financial records, income, expenses, and bank statements to see whether you should be in a Chapter 13 bankruptcy or if you really do qualify for a Chapter 7.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
If you have questions about bankruptcy or your income, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
