- Free Consultation: (202) 448-5136 Tap Here To Call Us
Chapter 7 Means Test Numbers in Washington D.C. Area Increase
Effective November 1, 2018 new Chapter 7 means test numbers take effect. Year-over-year means test numbers for household incomes in the D.C. area increased between 3 percent and 21 percent across the board. When the means test numbers increase, more people qualify for Chapter 7 bankruptcy.ç
What is the Chapter 7 means test?
Chapter 7 bankruptcy allows you to quickly and easily discharge your unsecured debts. To qualify for a Chapter 7 bankruptcy, you must pass the means test. The means test compares your current monthly income to the median income for your jurisdiction. Generally speaking, the lower your monthly disposable income, the more likely it is that you will qualify for Chapter 7 bankruptcy.
District of Columbia means test numbers
A single-person household in DC now qualifies for Chapter 7 with $64,324 in annual income, which represents an $8,994 (16 percent) increase from November 2017. A four-person household saw the largest year-over-year increase at 21 percent; a four-person household making $129,135 or less now qualifies for Chapter 7 bankruptcy.
The local housing allowance for utilities also increased 6 percent year over year, to $579 for a one-person household and to $799 for a four-person household.
Virginia means test numbers
All means test numbers in Virginia increased year-over-year. Single-person households qualify with $60,389 (an increase of 3 percent), two-person households with $76,047 (5 percent), and three-person households with $89,593 (5 percent). A four-person household in Virginia saw the smallest increase (1 percent) at $102,751 median income.
Local housing utility allowances for Fairfax and Loudoun counties both increased 6 percent. But Fairfax mortgage allowances remained flat while Loudoun’s decreased by 2 percent. And while mortgage allowances in Prince William County decreased 1 percent, utility allowances increased 5 percent across all household sizes. Meanwhile, Alexandria allowances increased for both utilities (a whopping 7 percent) and mortgages (1 percent).
Maryland means test numbers
Means test numbers for 1-person ($64,615), 2-person ($84,731), and 4-person ($115,771) households remained mostly flat in Maryland. Three-person household means test numbers, however, increased seven percent (or $6,812) to a median income of $102,917.
The local housing allowance for most counties remained mostly unchanged. But the median utility allowances for both Montgomery and Prince George’s counties increased 4 percent, while mortgage allowances decreased 1 percent. Interestingly, in Prince George’s County, vehicle operating expenses decreased 10 percent year-over-year for both one-car and two-car households.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
