When will the median income be updated again?

[teacher]

I vaguely recall my attorney's office saying the end of May, but I'm not 100% on that.

I'm off by $400 :/

[dgjmj]

It was just updated on March 15, 2009

http://www.usdoj.gov/ust/eo/bapcpa/20090315/bci_data/median_income_table.htm

[teacher]

Yeah, it seems to be really irregular though....but I just found an older (well, last month) post that talked about it...... thanks

[teacher]

if that's the new census median, they need to publish it along with florida :p

[JRScott]

It is done irregularly teacher. No way to be certain. Generally done I believe twice a year, usually once in the spring and once in the fall.

[kenshirley]

And there is no way your attorney would know either.

[JoeBankrupt33]

The census data is typically released in September and the median income for BK (which are the identical numbers from the census) have been updated sometime in October since BAPCPA started.

As for the spring updates, these take the September census and adjust those numbers by the change in the consumer price index in the last year (in spring 2010, the adjustment will be based on the average CPI for 2009 divided by the average CPI of 2008). The spring update times seem to be erratic, ranging from January to March.

[howdidithappen]

How is this median income used? Is it the amount you can expect to have a judge say you can live on?

[justbroke]

How is this median income used? Is it the amount you can expect to have a judge say you can live on?

It's used as one test of a multi-part test under the new Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005.

If you are under median income, you "pass the means test" for a Chapter 7 without having to complete the other tests and income/expense qualifications in the notorious Means Test. The BAPCPA was enacted to push more people into Chapter 13s. The Means Test was supposed to be an objective, impartial view at numbers to determine eligibility.

Decried by debtors and cheered by Creditors... it didn't really do anything but make things more complex in the Bankruptcy World and yield higher fees for attorneys!

To put it as one Judge put it... "[t]he means test presents a backward looking litmus test performed using mathematical computation of arbitrary numbers, often having little to do with a particular debtor’s actual circumstances and ability to pay a portion of debt." In re Hartwick, 352 B.R. 867 (Bankr. D.Minn. 2006)

[howdidithappen]

well, I'm about $400 over the annual amount - how about the equity in your house, is that another test?

[justbroke]

well, I'm about $400 over the annual amount - how about the equity in your house, is that another test?

No, not for a means test. However, the equity could affect your exemptions. In this regard, if you have too much equity (and don't live in Florida ), you may be compelled to sell the home or somehow get that amount of non-exempt equity to the Trustee for distribution to the unsecured creditors.