Twice a year the United States Census Bureau updates the median income. Those amounts were once again updated for Colorado on November 1, 2014.
They are as follows:
-Household Size of 1: $51,552
-Household Size of 2: $67,129
-Household Size of 3: $70,827
-Household Size of 4: $84,998
Add $8,100 for each household member in excess of 4.
For bankruptcy purposes, the median income amount is crucial in determining whether someone is either eligible for Chapter 7 bankruptcy. If their income exceeds the median income, and they have to file Chapter 13 bankruptcy, the median income amount will determine how much they’ll have to repay their creditors over the course of their Chapter 13 plan.
It’s important to keep in mind, however, that even if someone is over the median income, they may still be eligible for Chapter 7. An experienced bankruptcy attorney’s knowledge of the means test (used to determine Chapter 7 eligibility) can make the difference between getting your fresh start from bankruptcy in four months or having to repay a portion of your debt in a Chapter 13 bankruptcy over the course of three to five years.
If you have questions about bankruptcy, including whether your income qualifies you for Chapter 7 or Chapter 13 bankruptcy, 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.
Photo credit: Lending Memo