Every few months, the income figures used to determine whether or not a person qualifies to file Chapter 7 bankruptcy are adjusted. The current means test income figures that have been in effect since November 1, 2009 will be changing March 15, 2010.
My review of the new numbers reveals that it will be a little harder for Oklahomans to qualify for Chapter 7 bankruptcy on March 15 compared to today. This is because the new median income figures are lower than the prior income figures for Oklahoma households of all sizes.
The new median income figures for Oklahoma households are:
- $38,929 (1 person household)
- $50,710 (2 person household)
- $54,328 (3 person household)
- $61,816 (4 person household)
*Add $6,900 for each individual in the household over 4 for cases filed from March 15 through March 31, 2010.
*Add $7,500 for each individual in the household over 5 in cases filed on April 1, 2010 or thereafter.
If a person’s household income falls below these income levels, he/she passes the Means Test and automatically qualifies to file a Chapter 7 bankruptcy.
Most types of income are counted toward these figures, but a few types of income are excluded such as Social Security income.
A person whose household income exceeds these figures may still qualify for Chapter 7 bankruptcy if he/she has enough allowable expense deductions to offset his/her above median income.
A person who fails the Means Test and does not qualify to file Chapter 7 bankruptcy may choose to file a Chapter 13 bankruptcy instead.
