Median Income Levels in a St. Louis Bankruptcy
The federal government periodically issues the presumed median income levels for various household sizes. These median income levels are based on cost-of-living adjustments, Census Bureau data, and Internal Revenue Service standards. They are designed to reflect the average income for a specific household.
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For instance, according to the state of Missouri and the federal government, the average (or median) income for a household of one is: $44,286 (as of July 2016). If you are a household of one, and your total income (minus Social Security income) is less than this amount, then you are considered to be a ‘below median income level’ household. Conversely, if you make more than this amount, you are described as an ‘above median income level’ household.
Determining whether you are an above or below median income level household is very important to a St. Louis bankruptcy attorney, because this is the threshold question in the world of bankruptcy. Generally speaking (with a few exceptions), if you are a below median income level household, you may qualify for a St. Louis Chapter 7 bankruptcy. If you are above the median income level, it is presumed that you do not qualify for a Missouri Chapter 7 (however, it is possible to file a Chapter 7 even when you are above the median income level).
Median income levels are also important in a St. Louis Chapter 13 bankruptcy. If you are below the median income level in a Missouri Chapter 13, then it is possible to get a discharge of your unsecured creditors. In other words, your Chapter 13 repayment plan would not include any monthly payments towards things like credit cards, medical bills, payday loans, or past deficiencies.
Either way, the St. Louis bankruptcy lawyers at The Law Office of Jennifer Alter-Rieken understand the significance that median income levels pose in the filing of a bankruptcy. Our staff can help guide you towards the correct chapter of bankruptcy, which in turn will allow you to receive the fresh start / clean slate that you deserve.