Every six months or so the United States Census Bureau issues new information for the median income in each state.
As of November 1, 2018, the median income for Colorado is as follows:
Household size: 1 – $61,005
Household size: 2 – $77,762
Household size: 3 – $85,243
Household size: 4 – $102,233
For every household member over four add $8,400.
These numbers are especially important for people who are considering bankruptcy. The primary factor for someone to qualify chapter 7 bankruptcy is their income, which must be within the median income for their household size.
While it is possible to qualify for chapter 7 if your income is above the median amount, in my experience it is very rare, and I have only seen it happen in limited circumstances that usually involved my client having a large child support or spousal maintenance obligation. Someone whose income is above median will typically have to file a chapter 13 bankruptcy if they are looking for relief from the bankruptcy court. Remember, income from social security benefits does not have to be included in the calculation of your income for determining your eligibility for chapter 7 bankruptcy.
It’s important to remember that the Census Bureau revises median income numbers twice a year: May 1st and November 1st. If your income is close to the current median income amounts and you are planning on filing bankruptcy around either of those times, make sure you check with your lawyer to see if you need to file before the median income number changes, or if you should wait until the numbers change to qualify for chapter 7.
If you have questions about whether or not you qualify for chapter 7 bankruptcy or need to file chapter 13, please come in for a free consultation with an experienced Denver, Colorado bankruptcy attorney. You can schedule an appointment by clicking here.