New Chapter 7 Median Income Levels as of November 1, 2022
Oct. 25, 2022
If you are trying to decide, before you speak with a lawyer, if you can qualify for a Chapter 7, the first thing you need to know is what is your “Household Income”. Household income is defined in the United States Bankruptcy Code as all income from your employer is included—all gross wages or salary, as well as any tips, overtime, shift differentials, and commissions, WITHOUT subtracting any tax or other deductions. This also includes, but is not limited to pension income, gambling income, alimony, income from a business owned, and property rental.
Once you determine your household income you can look at the Chart published by the United States Census Bureau. This number is adjusted periodically throughout the year. An example of how to use same is as follows:
John Doe is single and has $25,000 in Debt. He lives in the State of New Jersey, and is employed earning a Gross Salary (before taxes are deducted) of $65,000. He lives by himself and has no relatives or family members living with him. According to the Chart, he would be able to file a Chapter 7 as the Median Income for a Single Wage Earner household is $77,681 starting November 1, 2022.
Compare John Doe, to another person, who is married, with both parties working, and earning the same $65,000 each. According to the Chart, the Median Income for 2 Wage Earners $91,716, so they could not file a Chapter 7, as their combined gross Household Income is $130,000 and they would be over the Chapter 7 Median Income.
For more information, or for a Free Consultation on whether YOU qualify for a Chapter 7, call the Law Office of Stuart M. Nachbar, P.C., located at 354 Eisenhower Parkway, Suite 2025, Essex County, Livingston, New Jersey 07039, or just call, (973) 576-5285. Our website is www.snanj.com.