Updated Median Income Figures for Means Test Calculations

As of Cases filed on or after October 1, 2006, the US Census bureau has issued new figures to compare a debtor’s income against the for Median Income Level for their family size in their state.

The new figures are as follows for Illinois:
Family Size Median Income

  1. $41,650
  2. $52,891
  3. $62,176
  4. $72,368

with $6300 added for each additional person in the household.

Therefore, under Chapter 7 bankruptcy, if the debtor’s household income (as calculated from the last 6 months of income) is below the respective figure, then the means test will not apply to their case.
Don’t fret, if the income is over the threshhold, it means that you would have to provide a little more information regarding your budget before you would be permitted to file Chapter 7. There are many pitfalls in this area, so be sure to contact an experienced attorney to help you out. In my experience, about 90% of debtors that I see still ‘pass’ the means test allowing Chapter 7. There are many exceptions, so it is important to get legal counsel when filing a bankruptcy.

Contact an attorney from the Chicago Bankruptcy Network today to speak to an experienced bankruptcy lawyer in your area to assist you. www.chicagobankruptcynetwork.com or call 312-427-0644 today.

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Terrance Leeders

Chicago Bankruptcy Attorney, husband, father, Cubs fan.

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