Texas Median Income Drop Adversely Affects Bankruptcy Filers After November 1st

Texas Median Income Drops

If you thought the recession only impacted your ability to save your home from foreclosure or to find a job quickly then you’re wrong.  The recession is dragging down American income and by extension the median income of Americans across the nation, including Texas.  Because of the drop in income, the median income which is used to determine if a debtor qualifies for Chapter 7 bankruptcy will drop again on November 1st 2010.

Currently Texas’s median come is as follows:

$38,801 – Household Size Of 1

$55,660 – Household Size Of 2

$59,011 – Household Size Of 3

$66,145 – Household Size Of 4

Those figures have dropped significantly for Texas.  After November 1, 2010 a debtor with a single person household will be above the median income if they earn more than $37,676.  That’s over an $1100 difference.  And for the average household of four people, the median income for Texas has gone from $66,145 to $64,420, a whooping $1725 difference.  Below are the official median income figures which will go into effect November 1, 2010

$37,676 – Household Of 1

$54,288 – Household Of 2

$55,534 – Household Of 3

$64,420 – Household Of 4

Debtors who are delaying their bankruptcy filing need to consider their income and compare it to these new and old figures.  Debtors who have “borderline” incomes that hover around the median income limit may be adversely affected by this adjustment.  If debtors even make slightly more than the median income, they may not be able to qualify for the Chapter 7 bankruptcy, even after they take the Means Test.