The Median income figures are used in figuring out the first part of the “Means Test” that is required when figuring out if you are eligible for Chapter 7 Bankruptcy, or for figuring out in Chapter 13 Bankruptcy if you will be required to commit to a 36, or a 60 month repayment plan.
Michigan Median Income Figures:
| Family Size | 1 Person | 2 People | 3 People | 4 People |
| Current Median | $48,626 | $59,541 | $70,579 | $87,078 |
*Plus 7,500 for each person over 4
Chapter 7 – Median Income
In a Chapter 7 Bankruptcy, the Median Income figure is used to see if you pass the first part of the Means Test. For example, a single guy making $60,000 per year would not pass the Median Income portion of the Means Test and would most likely have to file a Chapter 13 Bankruptcy. Whereas, a family of four people making $60,000 per year would most likely pass the Means Test and be eligible for a Chapter 7 Bankruptcy.
Chapter 13 – Median Income
In a Chapter 13 Bankruptcy, the Median Income figure is used to determine your commitment period to the bankruptcy. For example, a single guy making $60,000 per year would have a commitment period of 60 months if he was to file a Chapter 13 Bankruptcy. Whereas, a family of four people making $60,000 per year would have a commitment period of 36 months if they were to file a Chapter 13 Bankruptcy.
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