Question

The Campbells make $65,000 a year and live in Minnesota, which has a median annual income of $57,288. If their monthly expenses amount to $5200 per month, do they qualify for Chapter 7 bankruptcy?

Answer 1

No, the Campbells do not qualify because their yearly income is above the median annual income of Minnesota and they are ineligible according to the means test

Answer 2

Solution:

Monthly expenses amount of Campbells= $ 5200

Median annual income of Campbells=$57,288

Median monthly income of Campbells= $\frac{57,288}{12}=4774$$

Yearly income of Campbells= $ 65,000

Monthly income of Campbells=  $\frac{65000}{12}=5416.67$

Since Monthly income of Campbells is more than Median monthly income of Campbells. So, they do not  qualify for Chapter 7 bankruptcy.They have to give Mean test to qualify for Chapter 7 bankruptcy.