Means Test and Median Income in North Carolina
Broadly speaking, the bankruptcy code has grouped consumer debtors into two groups for the ability-to-pay means test, those above median income and those below median income. Elsewhere, we discuss what the consequences are for being above or below median income in chapter 7 as well as the consequences are for being above or below median income in chapter 13. Many debtors view being below median income as positive, but this is not always the case, as chapter 13 above median debtors may have beneficial access to certain allowances. We can provide a free evaluation of your individual financial situation.
This page focuses on the data itself defining median income, to which a debtor's income is compared determination of the applicability of the means test. The United States Trustee, a unit of the Department of Justice, complies and publishes the official means testing data based on compilation of data from several other government agencies. The data is updated periodically.
As of publication, the latest data is for cases filed on or after 11/1/2012. For North Carolina, these median income levels are:
|Additional Persons||$7,500 each||$625 each|
For a debtor, these income levels are compared against gross income (pre-tax and withholding), adjusted for certain expenses associated with businesses and rental operations, and excluding social security payments. Please contact us for full evaluation of your current monthly income based on your individual circumstances.
Median income figures are adjusted semiannually for cases filed after the effective date of the adjustment. While these changes are generally small, they can be consequential for debtors with income right around the median. Since means testing began, adjustments in North Carolina have ranged from -5% to +6%. The accompanying chart illustrates the history of median income levels in North Carolina.