For us attorneys in the five Zuckerberg bankruptcy law offices, April is always a busy time. For one thing, many clients had been waiting to receive their tax refunds, in order to use the money towards filing bankruptcy Chapter 7 in Indiana.
This year in particular, many went back into the job market, now that many employers have begun to recall and rehire. As my Bloomington bankruptcy lawyer colleague emphasizes, now these clients may be eligible to file under Chapter 13 bankruptcy law.
And, as I am fond of saying in these Bankruptcy in Indiana articles, income and bankruptcy are “joined at the hip”. It takes income to emerge from bankruptcy and get back on your financial feet.
In addition to all these factors, this April 1st saw some big changes in the income numbers the court uses to measure who qualifies to file personal bankruptcy in Indiana and what kind. The U.S. Bureau of Labor issued new guidelines that went into effect 4/1/13. These are median family income numbers by state.
For Indiana, the median annual income for a one-earner family is now $42,089. For a two-person household, the new median income number is $52,618; for a household of three, it’s $58,916, and for four people, it’s $70,763. For each extra person after that, $8,100 can be added to the median income figure. When I compare these numbers to the November, 2012 chart, for example, each is up around $800.
As a debt consolidation lawyer offering Indiana bankruptcy help, I often explain that the whole idea behind these median income numbers is that the more people that must be supported, the greater the number of dollars that must go toward paying expenses rather than paying off the debts.
Our work as attorneys is very centered on these income figures, and we know we must be very precise in our reporting to the court. When the bankruptcy court looks at a debtor’s finances, what will count is the income during the six months leading up to the filing.
“Passing” the means test, which uses the new, higher median income numbers we’ve been discussing, will now be just a tad bit easier!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg