We did a post almost 4 years ago on October 4th, 2010 that had the new bankruptcy means test numbers for the median gross income that families had to fall below to be immediately eligible to consider Chapter 7 bankruptcy.
Over the last four years, these numbers have increased, thus making it somewhat easier for folks in rural Kentucky to consider the option of bankruptcy.
Here are the new 2014 numbers for Kentucky, with the previous, 2010 lower numbers next to them in brackets:
Household Size of 1: $41,228 ($36,999)
Household Size of 2: $48,488 ($44,353)
Household Size of 3: $54,425 ($51,046)
Household Size of 4: $68,833 ($62,739)
add $8,100 ($7500) for each additional person in the household in excess of 4
(here is the link to the United States Trustee’s site which contains numbers for all states)
Why do I say that this increase has likely made it easier to qualify for bankruptcy if you live in rural Kentucky ? This increase appears to be on average almost 9%. I would venture to say that the cost of living in Kentucky in the last four years has NOT decreased by 9% nor has the average household income increased by 9%. It may be that the median household income in the urban areas of Kentucky has increased higher than 9% and this has driven up the statewide median.
Although it appears it may now be easier to qualify for Chapter 7 bankruptcy if you live in the rural, smaller counties in Kentucky, it is now more important than ever, when exploring the option of bankruptcy, to discuss your situation with a highly qualified bankruptcy attorney who is very familiar with the law and is proficient in assessing folks eligibility for bankruptcy under the means test. When shopping for a bankruptcy attorney, ask them how many years they have been practicing and how many cases they do monthly. These things are very important as it can make a huge difference whether bankruptcy will ultimately benefit you or not.
photo credit: James Cridland via photopin cc