Changes to the Bankruptcy Means Test as of April 1, 2013

Once again, the means test figures for median income have changed as of April 1, 2013. In New York, it means that the amount of income that the debtor can have before being forced into a Chapter 13 Bankruptcy is going to increase.

Through March 31, 2013, a single debtor in New York could have $46,821 in income in income and still be able to file Chapter 7 Bankruptcy.  Starting April 1, 2013, that figure has been increased to $47,790.  Similar increases will take place for all family sizes. The comparison of the existing and new income limits is below.

Old Income Limits


1 EARNER         2 PEOPLE              3 PEOPLE              4 PEOPLE *

$46,821              $58,106                 $67,652               $81,522

New Income Limits


1 EARNER         2 PEOPLE                3 PEOPLE             4 PEOPLE *

$47,790               $59,308                    $69,052              $83,209

* Add $7,500 for each individual in excess of 4.

While the increases are not large, they are an improvement on the last set of income limits.  The reason for a slight growth in the median income is the slight growth in the earnings of an average American family. Since the economy is down, employers do not give employees significant wages increases.  As a result, the American median family income has grown only slightly, and means test figures increased only moderately.

If you are contemplating filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, or are dealing with debt problems in Western New York, including Rochester, New York, Canandaigua, Brighton, Pittsford, Penfield, Perinton, Fairport, Webster, Victor, Farmington, Greece, Gates, Hilton, Parma, Brockport, Spencerport, LeRoy, Chili, Churchville, Monroe County, Ontario County, Wayne County, Orleans County, Livingston County, and being harassed by bill collectors, and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation with a Rochester, NY, bankruptcy lawyer.