The median income tables are typically updated twice a year and for the past couple of years, the median income numbers for all family sizes has been going down. From March 15, 2009 – October 31, 2009, for example, the median income figure for a family of 4 was $71,554. Compare that to the $64,223 figure for a family of 4 for cases filed between November 1, 2011 – April 30, 2012. This means that a family with household income of, for example, $70,000 annually would have easily qualified for Chapter 7 on October 31, 2009, but would have had many more hoops to navigate if they filed on April 29, 2012. Hopefully this upward trend in median income numbers will continue.
Increase in Homestead Exemption – in a more significant development, the Georgia legislature increased the homestead exemption from $10,000 to $21,500 (married couples filing jointly from $20,000 to $43,000). This means that you can protect twice as much equity in your home than you could before the change. This, too, will make Chapter 7 an easier fit for more people and make Chapter 13 a bit more palatable as well.
Georgia’s bankruptcy exemption statute is still stingier than those in other states but we’re moving in the right direction.
Practically, these changes may mean that Chapter 7 or Chapter 13 may be a better option than they were just a few weeks ago. If you have considered bankruptcy in the past but could not file because you owned too much or earned too much, your options may have just changed for the better. Call us at 770-393-4985 or email my office for more information.