The United States Census Department has issued new median income numbers for Colorado as of April 1, 2014, which are as follows:
Household size: 1 – $50,978
Household size: 2 – $66,663
Household size: 3 – $72,180
Household size: 4 – $84,551
*Add $8,100 for each individual in excess of 4.
Determining the household income for someone filing bankruptcy is the foundation of a Chapter 7 or Chapter 13 bankruptcy petition. Household income will determine whether or not someone can file Chapter 7 or can determine how much someone will have to repay their creditors during the course of the Chapter 13 bankruptcy.
If someone is over the median income, he or she may still be eligible for Chapter 7 bankruptcy. An experienced bankruptcy attorney will carefully go through that person’s expenses to see if there are eligible expenses (for example, medical insurance or having to pay child support or alimony) that can reduce income. Even if household income has been over the median income for the last six months, recent events, such as unemployment, may be sufficient to show a change of circumstances that would make someone eligible for Chapter 7.
If you have questions about whether bankruptcy may be a good option for you, we hope you’ll come in for a free, no-obligation consultation with an experienced Colorado bankruptcy lawyer. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.