Median income affects eligibility in NJ Bankruptcy for both Chapters 7 & 13 Bankruptcies. Many clients come to me and think they cannot qualify because they earn too much money. Although income is an important factor, it is not the only factor. For this reason, I meet with clients and do a thorough review to determine their bankruptcy eligibility. This allows me the opportunity to recommend if bankruptcy is right for you. I also evaluate which bankruptcy is right for you: Chapter 7, Chapter 11 or Chapter 13.
First, let’s look at what is Median income?
Median Income is the amount that divides the income distribution into two equal groups:
- Half having income above that amount
- Half having income below that amount.
Next, let’s look at where New Jersey’s median income ranks among other states. There is an important relationship between median income and filing bankruptcy in New Jersey.
New Jersey has the highest median income in all 50 states.
- 1 earner = $71,941
- Family Size: *
- 2 = $88,511
- 3 = $112,416
- 4 = $134,345
*Add $9,000 for each individual in excess of 4.
The median income is an important factor in filing either Chapter 7 or Chapter 13 NJ Bankruptcy. I can work with you in analyzing and determining not only the type of NJ bankruptcy but your eligibility.
A chart exists that allow you to see the median income for all states. You may find this information interesting.
If you would like to see the complete chart, go to: https://www.justice.gov/ust/eo/bapcpa/20201101/bci_data/median_income_table.htm
High income earners have a greater chance to meet eligibility for either a Chapter 7, Chapter 11 or Chapter 13 Bankruptcy.
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