Starting on April 1, 2023, new median income figures will be used to determine whether a debtor qualifies for a Chapter 7 bankruptcy. Median household income has recently increased due to several factors, including an increase in wages. A debtor filing a Chapter 7 bankruptcy must pass the means test, in order to qualify for a Chapter 7 bankruptcy. The means test looks at a debtor’s income from the previous six months prior to the time of their bankruptcy filing, and the debtor’s income must be under the state’s median household income in order to qualify for a Chapter 7 bankruptcy.
