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Median income requirements to file for Chapter 7 in Massachusetts

Generally, Chapter 7 bankruptcy allows debtors struggling to pay off, for instance, medical bills and credit cards, the ability to erase certain types of debt and obtain a fresh financial start. However, all debtors wishing to file a Chapter 7 must first pass a means test. In other words, debtors must meet certain requirements before they are allowed to file this type of bankruptcy.

First, debtors must fall on or below their state's set median income requirement for the size of their household. Each state's median family income amount is different. In some states, the median income criteria are set higher than in others.

In Massachusetts, for instance, debtors filing on or after May 1 of this year who earn on or at the below listed median income requirements based on their household size can file a Chapter 7 bankruptcy.

  • One-person household size: $55,185
  • Two-person household size: 66,200
  • Three-person household size: 82,873
  • Four-person household size: 102,194

For household sizes that exceed four people, an additional $7500 can be added to the income amount for every person.

However, debtors whose income is higher than the median income set in their state for their household size may still be able to qualify for a Chapter 7 bankruptcy. An additional step of the means test, which involves a calculation process, must then be completed.

Visit our page on Chapter 7 bankruptcy to learn more.

Source: The United States Department of Justice, "Census Bureau Median Family Income By Family Size," May 1, 2012

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