Twice a year, the US Census Bureau and the IRS provide data used by bankruptcy lawyers to determine who qualifies for debt relief. On May, 1, 2012, the new income numbers became effective for all new bankruptcy case filings. The good news is that median income figures rose for all household sizes in Rhode Island.
Below are the new median income figures that I will use for my Rhode Island clients who need to file for bankruptcy:
- 1 person household $ 47,798 (up from $ 46,335)
- 2 person household $ 61,506 (up from $ 59,624)
- 3 person household $ 68,909 (up from $ 66,800)
- 4 person household $ 88,990 (up from $ 86,267)
- Add $ 7,500 for each additional household member above a 4 person household
As a reminder, these are gross income figures. To determine whether you qualify for Chapter 7 bankruptcy relief, I will examine your trailing 6 months of gross income from all sources, except Social Security and unemployment. I will then double the gross figure and compare it to the chart above.
Bottom line: Many more who need to file for bankruptcy protection in Rhode Island now qualify. This window of opportunity may only be available for a short period, so if you are considering bankruptcy, call a qualified RI bankruptcy attorney today.