NEW MEDIAN INCOME NUMBERS Effective 3-15-09 Now Published

[optimistic1]

Actually, all of the medians went up. Because they did not actually collect new data, these numbers are just adjusted by the consumer price index. So, each and every median income listed went up by 3.8%.

When the census collects new data, then some states can go up and some can go down.

Good news for the bankrupt.

Does anyone have any information to validate this statement? Since when does the Census publish information not based on actual Census data? That just doesnt make any sense.

[JoeBankrupt33]

Does anyone have any information to validate this statement? Since when does the Census publish information not based on actual Census data? That just doesnt make any sense.

[optimistic1]

I never said you "made it up", just wanted some validity, thank you.

[JoeBankrupt33]

I also found the magic numbers used for the CPI adjustment. Look at the following site of CPI data. The numbers they used for the adjustment, which usually occurs around this time every year is the 2008 annual average divided by the 2007 annual average. This is 215.303/207.342 = 1.0384. This accounts for the 3.8% increase that every median income had. Now, looking at the CPI data, this has not gone down since 1955 (which makes sense because we haven't seen deflation). If this continues, that means that the median income published in feb/mar of each year will always increase.

To validate this, I also looked at the early 08 adjustment, and it went up by 2.8%, which is derived from the 2007 annual average divided by the 2006 annual average.

I'm sorry for being on the defensive in that last post. One thing I love about this place is that almost nobody is judgemental or negative (I've slipped on some posts, but I officially appologize).

ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt

[optimistic1]

So based on what you stated above, what do you see happening with the data when it gets updated again in August/September?

BTW, apology accepted.

[JoeBankrupt33]

That's the big question. The census data is released in August every year, then the median numbers are updated around October using that data. So, this is up in the air because it depends on the actual median incomes measured for each individual state. Last year, in October the median income went up in most cases, but not all. This coming October might be another story - it is possible that the median income will go down (that data is being collected now, but will be published in August). Also, it's possible that we'll have deflation, which would be bad for March 2010 filers.

[dgjmj]

Yeah for a family of 5 in Washington State it went up for us $3048.00

[optimistic1]

As did Arizona, but lets see how the real data in Septmeber shows. Hopefully for me, I will be filing with these new March Numbers, which will leave me with a 36 month Chapter 13.

[frontier2005]

newbie question, what is median income? thanks

[lrprn]

newbie question, what is median income? thanks

When you file bankruptcy, your total income for the last six full calendar months before filing is compared against your state's median income by family size. Here's a link to the median income table used by the bankruptcy courts for cases filed after March 15, 2009 - http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

[frontier2005]

When you file bankruptcy, your total income for the last six full calendar months before filing is compared against your state's median income by family size. Here's a link to the median income table used by the bankruptcy courts for cases filed after March 15, 2009 - http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

thanks for reply,

so this is 6 months, gross or net or net pay?

[jennordhavn]

thanks for reply,

so this is 6 months, gross or net or net pay?

Gross.

[frontier2005]

i lived in NJ and median income is $57K, which my 6 months income falls below median, i make about $60K/yr, with about $38K in CC, $6000 in student loan, $6500 Vehicle will be done in a year. But i still have to pass the mean test for me to know CH7 or CH13, right?

[lrprn]

i lived in NJ and median income is $57K, which my 6 months income falls below median, i make about $60K/yr, with about $38K in CC, $6000 in student loan, $6500 Vehicle will be done in a year. But i still have to pass the mean test for me to know CH7 or CH13, right?

That's right.

[frontier2005]

thanks