If you file for bankruptcy in Connecticut or anywhere else, then one piece of information you need to know is your “household size.”
Why is household size so important? Because of the Means Test.
Under the Means Test, you can file for Chapter 7 bankruptcy only if your monthly income is below the monthly median income for your state. If you live by yourself in Waterbury, CT, then that means your household size is 1 and your income needs to be less than $4,877.
However, if your household size consists of more than 1, then the threshold for monthly median income increases. In other words, the more people in your household, the higher the ceiling you have for meeting the median income standard that would enable you to file for Chapter 7 bankruptcy in Connecticut.
Below are the current monthly median incomes for Connecticut. These are subject to change each year, so be sure to consult with an experienced Connecticut bankruptcy attorney before filing.
- 1 person = $4,877
- 2 people = $6,049
- 3 people = $7,220
- 4 people = $8,510
- 5 people = $9,085
- 6 people = $9,660
And what is a “household”? It doesn’t have to just be direct relatives such as a spouse or children. Though those certainly would count. But it could be a grandparent or even a roommate.
Household size and the Means Test are not always simple or straightforward things to figure out. In some ways, it’s like figuring out your taxes. You want to make sure that only the required items are counted as income and that you take any deductions for which you are eligible. Additionally, intelligent pre-bankruptcy planning can be extremely helpful.
For these reason, if you’re considering filing for bankruptcy in Connecticut, make sure to consult with an experienced and reputable Connecticut bankruptcy attorney.
Please contact me for a free initial consultation to get answers to questions on household size, the means test and other bankruptcy topics.
Contact Attorney Melchionne
Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710