Bankruptcy Means Test Numbers Will Increase on November 1, 2020
New Means Test numbers are out for bankruptcies filed on or after 11/1/2020. All of the median income numbers are going up for Wisconsin as follows:
1 person household goes up from $52,730 to $54,660;
2 person household goes up from $68,363 to $72,171;
3 person household goes up from $83,607 to $87,353; and
4 person household goes up from $100,098 to $103,708.
(Add $9,000 for each household member above 4.)
These are significant increases. The last time these numbers were changed we saw an average increase of $1,356 for the households of 1 through 4. This time they average a change of $3,273.50. This will make those Debtors who were just missing out on being able to file a Chapter 7 because of Means Test issues now able to do so. For Chapter 13 Debtors it may significantly reduce the amount required to be paid on unsecured nonpriority debts in their Chapter 13 Plan. If you are considering bankruptcy, call us to find out if these new numbers will be beneficial to you.