New Bankruptcy “Means Test” Income Figures Effective April 1, 2017
The U.S. Trustee’s Office has announced new median income figures slated to go into effect on April 1, 2017. These income figures will become part of the bankruptcy means test for chapter 7. The new figures for Minnesota are:
$52,785 for a one person household
- $70,889 for two person household
- $85,033 for a three person household
- $101,762 for a four person household
- $8,400 for each additional household member
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.