Any economics majors out there?

[LostOne0069]

Question for someone who understands how inflation and "adjusting for inflation" works.

The median income sheet from the trustees office says that it's currently in "2005 inflation-adjusted dollars" and that they're going to update it on sept 12 to "2006 inflation-adjusted dollars".

I'm trying to figure out if the "adjustment" is going to raise or lower this number.

For ease of numbers, say the "2005 inflation-adjusted dollars" was $10,000 and inflation was 2%. Would the "2006 inflation-adjusted dollars" be $10,200 or $9,800?

[Minnymouth]

lol............ BETTER ASK THE NEWBIES................... I been out of school 40 years + - SURELY NOT MY FIELD OF EXPERTISE............

HELP HIM SOMEBODY.........................

[lrprn]

Question for someone who understands how inflation and "adjusting for inflation" works.

The median income sheet from the trustees office says that it's currently in "2005 inflation-adjusted dollars" and that they're going to update it on sept 12 to "2006 inflation-adjusted dollars".

I'm trying to figure out if the "adjustment" is going to raise or lower this number.

For ease of numbers, say the "2005 inflation-adjusted dollars" was $10,000 and inflation was 2%. Would the "2006 inflation-adjusted dollars" be $10,200 or $9,800?

In the real world, if inflation increases 2%, then the adjustment would go up to $10,200. However, if there's one thing I've learned from being around bankruptcy and the government, it's that whatever is logical to me often has nothing to do with what the government decides is "logical" to them. I'm waiting until Sept 12 to see what's going to happen with the adjusted income values for bk forms....sigh....

[LostOne0069]

I've sent questions out to the census bureau and a lawyer blog site asking this same question...

This could be a BIG deal for those of us who aren't planning on filing for a few weeks as a bunch of state's median income figures went DOWN. In my case, the '05 figure for my family is 103,998... the '06 figure... using numbers that are "2005 adjusted for inflation dollars" is $102,861.... which would be a problem for me since my income is going to hit right at $103,681. (They're including about $12,000 that my company pays for my medical benefits as "income)... This may or may not be a problem... depending on which way the "adjustment for inflation" goes. I'm tentatively hopeful that the "2006 adjusted for inflation dollars" is actually going to end up with a figure HIGHER than the 2005 figure... even though the "actual" dollars went down a bit.

If any more wrenches show up to screw me out of a chapter 7, I think I'm gonna pop a vein in my skull.

It doesn't help that my creditors are starting to call again.... it's been about 3 months since I told them that I was filing and gave them my attorney's name.

[SinkingFast]

We're in the same spot.

With Son working, the attny is adding his income to Hubby's. Even tho Son does not contribute to the Household expenses. Son's money goes to pay for his tuition, books, fees, and other necessary things for college. If the Court wanted to count money Son pays for gas to travel to school and lunches eaten out from time time, that would be one thing. But Son's total income is unreal to me!!

Anyway, that brings us to right at $500 below the Median for the straightforward, "No Presumption of Abuse" attempt for a Ch 7. If the Median for our State goes down even a smidge, we could be in trouble as well.

[SinkingFast]

I guess we're gonna be one of the first to use the new numbers.

Just got a note from our attny.

We have an appt. Tues, Sept 12th. We'll meet with our attny to go over our Petition and possibly sign and file then.

[LostOne0069]

What state are you in and how many members in the family?

Here's the link to the new numbers. Remember that these numbers are "2005 adjusted for inflation"... According to the US Trusteee's web site, they'll put up the "2006 adjusted" numbers by the 12th.

God, I hope that these numbers DO change (upwards!)

http://www.census.gov/hhes/www/income/medincsizeandstate.html

[SinkingFast]

I just checked that link and it makes no sense for our State.

Indiana.

Indiana Estimate Margin of Error
Total: 54,077 +/-584
2-person families 47,313 +/-662
3-person families 55,496 +/-1425
4-person families 64,564 +/-1195
5-person families 61,996 +/-2094
6-person families 64,304 +/-4624
7-or-more-person families 56,378 +/-6411


Those numbers look like a 5 person family would have a lower income than a 4 person family. Same with 7 person families. Less than 4 as well. How odd??!!

And those numbers are lower than the old numbers, pre 2/13/06. Right now, post 2/13, for a 6 person family, which is what we have, the Median Income is $78,021.

[LostOne0069]

I find it confusing too... and VERY spirit-crushing. I guess we'll just have to wait until the 12th when the new list is put out by the trustee's office.

[SinkingFast]

At least NJ went up. If I remember correctly that's where you are Lost. NJ.

For a family of 6, isn't that right?? The NJ figures went up about $2K. Really hope that holds true for you!!

[LostOne0069]

At least NJ went up. If I remember correctly that's where you are Lost. NJ.

For a family of 6, isn't that right?? The NJ figures went up about $2K. Really hope that holds true for you!!

Well, yeah, I suppose.... except that the figure that they show is about $15k-$20k BELOW what it was for last year.

New Jersey went down in several categories... so I have no idea what's going to happen.