The U.S. Department of Justice has published new median, gross annual income data for use in bankruptcy cases filed on or after April 1, 2021. For Minnesota residents, the figures have increased, making it more likely that you will qualify for Chapter 7 relief.
Here is how much the median amounts will increase in Minnesota from numbers used in cases filed between November 1, 2020 and March 31, 2021:
One person household: +$763 (from $61,811 to $62,574)
Two person household: +$1,005 (from $81,478 to $82,483)
Three person household: +$1,239 (from $100,430 to $101,669)
Four person household: +$1,464 (from $118,646 to $120,110)
The increase for additional household members above the first four remains the same, at $9,000.
A reminder: the median income amounts are only part of the analysis for determining whether you qualify for Chapter 7 relief. Calculating the amount is based primarily on your gross income for the six months prior to your month of filing. But you can sometimes be over the amount and still qualify after completing the full, long-form means test. How to count household income can be tricky as well, depending on sources (social security benefits do not count, for instance) along with the amounts that are contributed by other household members.
As always, consultation with a qualified, experienced bankruptcy attorney is critical. But if you're struggling with debts, starting next month it may be a little easier for you to qualify for relief.