New Means Testing Incomes: NC Family Median Incomes Lowest Since 2008

Historical graph of NC median family income

The United States Trustee this month released the updated means testing figures to be used in bankruptcy cases filed on or after 11/1/2011. In North Carolina, the median income levels for households of 2, 3, and 4 people has declined from 3/15/2011 values. This is the third year in a row where these November median income values are lower than the March figure, and median household incomes for 2, 3, and 4 member households have not been at a lower amount since early 2008 in North Carolina.

The previous and new median income figures are as follows:

Household Size Income (cases 3/15 to 10/31/2011) Income (cases on or after 11/1/2011)
1 Person $37,781 $37,892
2 People $50,630 $48,710
3 People $55,468 $54,310
4 People $67,578 $65,036
Additional Persons $7,500 each $7,500 each

The weak median income figures are associated with the continued weak economic environment state-wide. For potential bankruptcy debtors with gross household incomes (as calculated under the bankruptcy means test) between the old and new median income figures, prompt consultation with a bankruptcy attorney will allow an informed decision on timing the bankruptcy petition. Classification as an above median income debtor can impact eligibility under chapter 7 as well as chapter 13 payment amount and plan length. In certain cases, classification as an above median income debtor may be advantageous to chapter 13 debtors when formulating a chapter 13 plan.

Photo of Erich M. Fabricius

Raleigh Bankruptcy Attorney Erich Fabricius is available to assist consumers throughout the greater Raleigh area who are filing chapter 13 bankruptcy. Based out of the Knightdale law office of Fabricius & Fabricius PLLC, Erich offers free consultations to consumers who may file bankruptcy.

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