2019 Median Income Limits for Bankruptcy Means Test – April update
The government has updated the 2019 median income numbers. It got easier to qualify for Chapter 7, because of another means test adjustment. The means test for bankruptcy decides who qualifies for Chapter 7 bankruptcy eligibility. The first step of this process is comparing your household income against the median income limits set by the Department Of Justice guidelines to see if you earn less than California median income limits. The means test limits adjusts. So, someone may not qualify according to the means test in one month but after the changes they do, or vice-verse. The last updates were in November 2018. Here are the April 2019 numbers to determine who can file Chapter 7.
Means Test: 2019 Median Income Adjustments – April update
Every now and then, the government updates the median income limits. They last did it in November 2018. Good news: the California 2019 median income numbers are now even higher, increasing household income for bankruptcy means test qualifying. This means that more people could qualify for Chapter 7 bankruptcy using the California median income numbers below.
2019 Median Income for California Households
Because the California median income changes maybe once or twice a year, these recent changes in April 2019 will be the latest numbers used for 2019 median income. You’ll see below there’s talk about household size. Notice also that larger families also get a break, as the amount for each additional member went up from $8,400 each to $9,000. This is helpful for households of five people or more. This isn’t always clear who counts in a household. There may be a difference if you have a roommate who pays rent. What if you’re married? Or have kids but they’re adults. Do you live with your significant other, who has their own finances? They’re all in your household. Or, maybe they’re not. Call and let’s meet to talk about it. But below are the California median income limits for the various household sizes.
California household size and California median income for Bankruptcy
- 1-person household: $57,962
- 2-person household: $77,167
- 3-person household: $84,003
- 4-person household: $96,813
- Each additional person: $9,000
Read Our Means Test Guide.
2019 Median Income Isn’t Everything
A person can still file Chapter 7 bankruptcy, in some cases, even if they earn more than the median income. The bankruptcy means test would just need to be filled out completely. It’s still possible to qualify. However, even if someone isn’t eligible, there is still a way out in Chapter 13.
Finally, we don’t know the next time changes to the median income limits will happen again. So, be sure to check before relying on these California median income limits in the future.
CONTACT A LOS ANGELES BANKRUPTCY LAWYER TO SEE IF YOU QUALIFY