Median Income for AZ

[tightgrip]

Can someone please help me find out what the actual median income for AZ is for a one income household. My husband is the only one with the income and we have 3 children. Is it $42,476? I found something that states it was updated March 15, 2010. Funny how I have an attorney and all and he can't even give me accurate information. I was hoping yesterday he would tell me when we could file and if we would qualify for a 7 or 13. So now I guess I will try to figure it out myslef. If we plan on filing on May 1 we would have a 6 month look back of 41,644. Thanks!

[justbroke]

You find this information at the United State's Trustee Program's (USTP) website. It's at http://www.justice.gov/ust/eo/bapcpa/meanstesting.htm.

Arizona for 4 people is $69,205. Then you get an adder of $7,500 for the 5th person. So the medium income is $76,705 for a family of 5 in Arizona.

Unfortunately, you looked at the line for 1 Earner (single member household). You didn't add the additional people. I know, their form is confusing with the "1 Earner" thing on it!

[tightgrip]

Well I guess I am not understanding the whole Bankruptcy thing. I am sooo frustrated at this point. So our 6 month look back for October thru March is 44195.37. We were told we could not qualify for a 7 because of our income and we did not pass the means. We have approx. 483 left over. Sooo . . . . you qualify for a 7 if you are under median correct? And if you are above you have to pass the means? I just dont understand what 1 income earner means when we have 1 income earner but 5 people in the household? This is sooo confusing, wish my attorney could explain things better to me!

[mama2three]

The median income is based on the number of people in your household, not how many people earn an income who live in the household. If your six month look back is around $44,000 and the median for a family of five (yourself, your husband, and kids) is $69,000 (I believe that is around what justbroke said) then you qualify.

Median for family of 5 is approximately $76,000

[justbroke]

Well I guess I am not understanding the whole Bankruptcy thing. I am sooo frustrated at this point. So our 6 month look back for October thru March is 44195.37.

Aha, there's the problem. you are actually over the median income. If you made $44K in 6 months, then you make $88K a year which is certainly over the median for a family of 5 in Arizona ($76,705 is the median).

We were told we could not qualify for a 7 because of our income and we did not pass the means. We have approx. 483 left over.

Having $483 is disposable income is not good. This will certainly push you towards a Chapter 13.

Sooo . . . . you qualify for a 7 if you are under median correct?

Yes and No. It's not that simple. If you're under the median income, you just get to skip the means test.

And if you are above you have to pass the means? I just dont understand what 1 income earner means when we have 1 income earner but 5 people in the household? This is sooo confusing, wish my attorney could explain things better to me!

Yes, you have to pass the means test if you are over the median income. This is to weed out those folks who have the ability to pay.

Those USTP charts can be confusing, but the "1 earner" means just 1 person in the household. You would use the other columns (2, 3, 4) for calculating the median income for a household of more than 1 person. They are also annual figures, not the 6-month lookback.

[mama2three]

Well I guess I am not understanding the whole Bankruptcy thing. I am sooo frustrated at this point. So our 6 month look back for October thru March is 44195.37. We were told we could not qualify for a 7 because of our income and we did not pass the means. We have approx. 483 left over. Sooo . . . . you qualify for a 7 if you are under median correct? And if you are above you have to pass the means? I just dont understand what 1 income earner means when we have 1 income earner but 5 people in the household? This is sooo confusing, wish my attorney could explain things better to me!

Are you saying you have $483.00 left over each month after running the means test? If so, you can be pushed into a 13 based on your disposable income. What are your monthly expenses? Did you run the legal consumer means test?

[mama2three]

Justbroke is right. I misread your numbers, thinking the 44K was for the year. You are too far over the median and if you are showing $483.00 left over a month you have enough to fund a 13

[tightgrip]

Well see that makes all the sense, so why should my attorney say to wait till May 1st to see if we get under the median when I know we won't!! We will be at 83k, and that is way above it. I mean we could still maybe make it with our expenses on the means test, but I wish things would get better explained to us! That is their job!! We don't mind doing a 13 they told us that we would be a 7 and that we had no problems and he had everything now after months of waiting we are still unsure, but I think I am just going to tell them to go ahead and do the 13 and if things change in the future then we could convert but I am ready to just get the ball moving already!!

[justbroke]

Well see that makes all the sense, so why should my attorney say to wait till May 1st to see if we get under the median when I know we won't!!

Because the median income changed as of March 15 and again on April 1, 2010. However, the numbers I used above are the April 1, 2010 numbers.

I think I am just going to tell them to go ahead and do the 13 and if things change in the future then we could convert but I am ready to just get the ball moving already!!

It reads as though you are not comfortable with how comfortable your attorney makes you feel. It is extremely important that you are comfortable with your attorney and their communications in a Chapter 13! Might I suggest, if you haven't already paid a large retain, and maybe even if you did, shop around?