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Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog

Median Income for Michigan Changing April 1, 2013

Posted by Peter Behrmann, Esq. On March 28th

Median Income for Michigan Changing April 1, 2013Median Income in Livonia Bankruptcy

 

Come April 1, 2013, the Median Income for Michigan used for bankruptcy eligibility will be changing once again.  The Median Income last changed November 1, 2012. 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

New Median Income

$45,029

$52,621

$61,715

$73,864

Current Median Income

$44,116

$51,554

$60,464

$72,366

*Plus 8,100 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 less people will now be eligible to file Chapter 7 bankruptcy then prior to April 1, 2013. For people looking to do a Chapter 13 Bankruptcy, less people will be eligible for a shorter 36 month, over the longer 60 month commitment period.  The biggest change is the Median Income for a family of three which is increasing to $61,725, a $1,251 increase.  What this means is that individuals in Michigan are making slightly more money than they were six months ago.

 

 

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.

Bankruptcy Median Income for Michigan Changing

Posted by Peter Behrmann, Esq. On October 30th

Bankruptcy Median Income for Michigan Changing November 1, 2012

 

Come November 1, 2012, the Median Income for Michigan used for bankruptcy eligibility will be changing once again.  The Median Income last changed May 1, 2012. 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

Current Median

$45,056

$51,660

$60,313

$72,454

After November 1st

$44,116

$51,554

$60,464

$72,366

*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 less people will now be eligible to file Chapter 7 bankruptcy then prior to November 1, 2012. For people looking to do a Chapter 13 Bankruptcy, less people will be eligible for a shorter 36 month, over the longer 60 month commitment period.  The largest change is the Median Income for a single individual which is dropping to $44,116, almost a $1,000 decline.  What this means is that single individuals in Michigan are simply making less money than they were six months ago.

 

 

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.

“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

 

 

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