Every six months, the Current Monthly Income numbers are updated. These numbers determine initial eligibility for Chapter 7 Debt Relief, via the “Means Test.” Thanks to the poor Michigan economy, those lucky enough to have a job will find it more difficult to get a fresh start with a Chapter 7 filing. Effective November 1, 2010 a single person earning less than $41,875 qualifies for a Chapter 7, prior to November 1, 2010 the number was 43,456. The other changes are: Two member household: $49,919 down from 52,433, Three member household: 59,190 down from 61,517 and Four member household $70,558 down from $74,558. Other deductions may allow persons with earnings above these limits to qualify for a Chapter 7, so don’t despair, get a free consultation from a local bankruptcy practitioner to be sure. Also, remember, you don’t have to be related to qualify as multi-member households.
