Means test

Updated Median Income Limits

On April 1st, 2015, the standards for median income for all Pennsylvania bankruptcy filings was updated (as it is annually on April 1st of every year).

The median income amount for relevant household size is used in all bankruptcy filings on Form 22A-1. If the household income for all types of income earned over the past 6 months is above the median income limit, debtors (of more precisely, their lawyers) must complete Form 22A-2. Form 22A-2 is the corresponding deductions form, which may allow you to file a Chapter 7 bankruptcy even if your household income is over the median limit by deducting allowable expenses.

A debtors Median Income is an important first threshold in determining if a Chapter 7 bankruptcy can be filed, or if a Chapter 13 bankruptcy is instead required. Most types of income must be included in Form 22A-1, including commissions, bonuses (even one-time bonuses), unemployment, alimony, rental income, part-time work, or even lottery winnings. Inform your bankruptcy attorney of any source of income you receive so the calculation can be completed correctly. A safe rule of thumb: if received any money in the last 6 months that wasn't in a birthday card, you should report it to your attorney.

The new Median Income limits for Pennsylvania as of April 1st, 2015 are as follows (the highlighted amount is the amount that can be earned by a household in the 6 months preceding the date the bankruptcy is filed):

  • Household of 1: $24,491.00
  • Household of 2: $28,935.00
  • Household of 3: $36,433.00
  • Household of 4: $42,833.00
  • Household of 5: $46,933.00
  • Household of 6: $50,983.00

(Add $4,050.00 for each additional household member)

When meeting with your attorney to determine your median income, it is advisable to bring paystubs, bank statements, or any other documentary proof of income for the past 6 months. If this is not available, bring as much information as you can to calculate a best guess. Determining your median income for the last 6 months is one of the most important steps in filing a Chapter 7 or Chapter 13 bankruptcy.

Contact us to set up a free consultation with a Pittsburgh bankruptcy lawyer. I can calculate your means test income and let you know if you qualify for either type of consumer bankruptcy.