As you probably know, one of the first steps we take in evaluating your case to see if you can fit into a Chapter 7 (or to help us determine what a Chapter 13 would require) is to run a “means test” analysis.
Under the bankruptcy law you can only qualify for Chapter 7 if your household earnings are below the “median family income” for a family with the same number of people as yours. If your household earnings exceed the median income you still may be able to file for Chapter 7 but it can be much more difficult to do so.
Generally speaking, our experience has been that if your household earnings are more than $10,000 to $15,000 over the median income numbers it will be very difficult to fit you into a Chapter 7.
For 2025 filings made through May 15, 2025, the median income numbers in Georgia are as follows:
- Family size of 1: $60,613
- Family size of 2: $78,980
- Family size of 3: $95,740
- Family size of 4: $111,334
- For every additional child or family member add $9,900 to the family size of 4 number.
To give you some perspective on these numbers, for bankruptcy cases filed in 2005 (20 years ago) the median numbers were:
- Family size of 1: $34,396
- Family size of 2: $45,775
- Family size of 3: $49,855
- Family size of 4: $58,060
I have been handling bankruptcy matters for over 30 years in the Atlanta and north Georgia area and I have not seen salaries increase this much in the past 20 years but for bankruptcy purposes, the higher median income numbers help us fit more people into Chapter 7.
Higher median income numbers also give us more flexibility in creating a Chapter 13 plan that requires less than a 100% repayment to unsecured creditors.
Gather Your Paystubs to Start a Bankruptcy Analysis
If your debts are becoming unmanageable and you would like a free personal bankruptcy analysis, you can start by gathering your paystubs from the past 7 months and reach out to us to discuss your situation. Here is a link to a short form that will help us understand the big picture of your financial distress.