Median Income Numbers for Georgia Go DOWN!

For the first time since means testing was instituted in 2005, the median income number in Georgia have gone down.   This means that potential Chapter 7 debtors will have a more difficult time avoiding a "presumption of abuse" and the extra cost and hassle of means test calculations.

Here is a comparison table

Current Median Income Numbers            Median Income numbers after November 1, 2009

Family size

1                                $40,760                                                                               $40,691

2                                $54,054                                                                                $55,258

3                                 $61,959                                                                                $61,104

4                                 $71,554                                                                                $68,502

Let's consider how this change affects you if you have a family of 4.  If you file by October 31, 2009, you can have household income of $71,554 and still qualify for Chapter 7 without having to qualify under the means test.  As of November 1, 2009, if you earn $71,554, the presumption of abuse arises and you must try to qualify by rebutting the presumption using the means test.

If your six month average gross income (April-September) is close to the current median income numbers and you expect the May-October numbers to be similar, it may make sense to try to file prior to November 1 – or at least to discuss this possibility with your lawyer.