Livonia Michigan Bankruptcy - Michigan Bankruptcy Blog

Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog

“M” is for Median Income in Bankruptcy

Posted by Peter Behrmann, Esq. On April 20th

“M” is for Median Income

 

Come May 1, 2012, the Median Income for Michigan used for bankruptcy eligibility will be changing once again.  The Median income figures are used in figuring out the first part of the “Means Test” that is required when figuring out if you are eligible for Chapter 7 Bankruptcy, or for figuring out in Chapter 13 Bankruptcy if you will be required to commit to a 36, or a 60 month repayment plan.

 

Michigan Median Income Figures:

 

Family Size

 

1 Person

2 People

3 People

4 People

After May 1, 2012

$45,056

$51,660

$60,313

$72,454

Current Median

$42,562

$50,738

$60,161

$71,758

*Plus 7,500 for each person over 4

 

Chapter 7 – Median Income

 

In a Chapter 7 Bankruptcy, the Median Income figure is used to see if you pass the first part of the Means Test.  For example, a single guy making $60,000 per year would not pass the Median Income portion of the Means Test and would most likely have to file a Chapter 13 Bankruptcy.  Whereas, a family of four people making $60,000 per year would most likely pass the Means Test and be eligible for a Chapter 7 Bankruptcy.

 

Chapter 13 – Median Income

 

In a Chapter 13 Bankruptcy, the Median Income figure is used to determine your commitment period to the bankruptcy.  For example, a single guy making $60,000 per year would have a commitment period of 60 months if he was to file a Chapter 13 Bankruptcy.  Whereas, a family of four people making $60,000 per year would have a commitment period of 36 months if they were to file a Chapter 13 Bankruptcy.

 

Impact of the New Median Income Figures

 

The impact of the new Median Income figures is that more people will now be eligible to file Chapter 7 bankruptcy then prior to May 1, 2012.  For people looking to do a Chapter 13 Bankruptcy, more people will be eligible for a shorter 36 month, over the longer 60 month commitment period. 

 

 

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

Photo Credit: ChrisinPlymouth

 

 

Other Bankruptcy Attorneys Blogging on the letter “M”

      

 

 

 

9 Responses

  1. Bankruptcy Alphabet: M-Median Income: Are You Above or Below? | Los Angeles Bankruptcy Blog Says:

    […] Median Income–Livonia Michigan Attorney, Peter Behrmann […]

    Posted on April 20th, 2012 at 4:24 pm

  2. M is for Mortgage Arrears | BankruptcyHI.com Says:

    […] For more M terms: Matrimonial Law in Bankruptcy-Philadelphia Suburban Bankruptcy Lawyer, Chris Carr Means Test-Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell Means Test-New York Bankruptcy Lawyer, Jay S. Fleischman Meeting of Creditors-Colorado Springs bankruptcy Attorney Bob Doig Modify-Northern California Bankruptcy Lawyer, Cathy Moran Monthly Income-Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein Mistakes-Cleveland Bankruptcy Attorney, William (Bill) Balena Marriage-San Francisco Bankruptcy Lawyer, Jeff Curl Median Income: Above or Below, Does it matter?-Los Angeles Bankruptcy Attorney, Mark J. Markus Mortgages and Bankruptcy-Taylor, Michigan Bankruptcy Attorney, Chris McAvoy Means Test-Marin County Bankruptcy Lawyer, Cate Eranthe Median Income-Livonia Michigan Bankruptcy Attorney, Peter Behrmann […]

    Posted on April 21st, 2012 at 12:21 am

  3. Getting Control of Student Loan Debt Says:

    […] Above or Below, Does it matter? Members of the Household Mortgages and Bankruptcy Means Test Median Income Matrimonial Law in Bankruptcy Mortgage Arrears in Bankruptcy […]

    Posted on July 14th, 2012 at 4:55 pm

  4. M is for Municipal Cities in California Filing Bankruptcy | Chapter 11 Bankruptcy Los Angeles California Says:

    […] Median Income […]

    Posted on July 31st, 2012 at 12:16 pm

  5. M is for Municipal Cities in California Filing Bankruptcy : Los Angeles Bankruptcy Law Monitor Says:

    […] Median Income […]

    Posted on July 31st, 2012 at 3:19 pm

  6. Means Test Median Income Figures Reduced Again for Michigan Bankruptcy Filers Says:

    […] Ann Arbor Bankruptcy Court Automatic Stay Bankruptcy Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Chapter 7 Chapter 7 Bankruptcy Chapter 13 Chapter 13 Bankruptcy Creditors Detroit Bankruptcy Court Exemptions Federal Bankruptcy Exemptions Financial Life Flint Bankruptcy Court Free Consultation Household Median Income Internal Revenue Service IRS Tax Debt Joint Bankruptcy Knowing What Bankruptcy Attorney to Hire! Limits on Bankruptcy Livonia Michigan Bankruptcy Means Test Median Income Non-Attorney Bankruptcy Objection to Confirmation Personal Bankruptcy Personal Guaranty Qualified Retirement Accounts Real Estate Save Your Home Section 341 Court Hearing Signs You Should File Bankruptcy State of Michigan Tax Debt Tax Debt Trustee Unsecured Creditor Value Wage Earner Bankruptcy Westland Michigan Bankruptcy Years between Bankruptcy FilingsSource: livoniamichiganbankruptcy.com […]

    Posted on August 8th, 2012 at 8:54 pm

  7. Do I Have to Include my Annual Bonus in the Chapter 7 Bankruptcy Means Test? Says:

    […] […] Ann Arbor Bankruptcy Court Automatic Stay Bankruptcy Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Chapter 7 Chapter 7 Bankruptcy Chapter 13 Chapter 13 Bankruptcy Creditors Detroit Bankruptcy Court Exemptions Federal Bankruptcy Exemptions Financial Life Flint Bankruptcy Court Free Consultation Household Median Income Internal Revenue Service IRS Tax Debt Joint Bankruptcy Knowing What Bankruptcy Attorney to Hire! Limits on Bankruptcy Livonia Michigan Bankruptcy Means Test Median Income Non-Attorney Bankruptcy Objection to Confirmation Personal Bankruptcy Personal Guaranty Qualified Retirement Accounts Real Estate Save Your Home Section 341 Court Hearing Signs You Should File Bankruptcy State of Michigan Tax Debt Tax Debt Trustee Unsecured Creditor Value Wage Earner Bankruptcy Westland Michigan Bankruptcy Years between Bankruptcy FilingsSource: livoniamichiganbankruptcy.com […]Source: livoniamichiganbankruptcy.com […]

    Posted on August 10th, 2012 at 2:52 am

  8. Student Loans: How Much Is The Degree Really Worth? Says:

    […] Marin County Bankruptcy Lawyer, Cate Eranthe Median Income                      Livonia Michigan Bankruptcy Attorney, Peter Behrmann Mortgage Arrears in Bankruptcy Court     Pittsburgh Bankruptcy Attorney Shawn N. Wright M is […]

    Posted on August 12th, 2012 at 6:17 pm

  9. M is for Municipal Cities in California Filing Bankruptcy | Los Angeles Bankruptcy Law Monitor Says:

    […] Median Income […]

    Posted on February 25th, 2014 at 6:45 pm

Leave a Reply