The median income figure is based upon the average income in the entire State of New York. It is only a starting point in calculating whether you qualify for a Chapter 7 bankruptcy. Household size, where you live, secured debts and many other factors must be calculated in addition to your gross income to determine whether you qualify for a chatper 7 or need to examine a chapter 13 wage earners plan.
The median income is an average of income through the entire state. If you live in New York State, the median income is determined by averaging all workers’ income in the State of New York.
The current median income in New York State for a family of 1 is $46,523.
The current median income in New York State for a family of 2 is $57,006.
The current median income in New York State for a family of 3 is $67,991.
The current median income in New York State for a family of 4 is $83,036.
For each family member in the household above 4, you can add $6,900 a year to the above figure.
These figures are changed periodically. And, the median income is only a starting point to determine which chapter of bankruptcy you may qualify for. After determining your median income (which is based upon the six months prior to the filing of the bankruptcy petition), there are standard deductions allowed on the means test based upon which county you live in.
The variance in deductions allowed county to county causes very unusual results when examining a client’s qualifications for bankruptcy. for instance, the rental allowance allowed in New York County (Manhattan) is $3,252 for a family of 1, while the rental allowance allowed in Brooklyn for a family of one is currently $1,275. Such disparity in allowances can result in very unusual findings when anlayzing potential bankruptcy clients qualifications for bankruptcy. And, the results are not always fair.
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