As of October 1, Washington D.C. bankruptcy petitioners will face greater obstacles to filing under Chapter 7. That's because Chapter 7 filers must qualify under the Chapter 7 "means test", a test which employs median income figures for the petitioner's state and family size.
Median incomes have declined in many states, some in multiple family-size categories.
However, Washington D.C. bankruptcy petitioners face the greatest change. On and after October 1, a single Washington D.C. bankruptcy filer will be subjected to means testing using a median income $4,000 lower than the one currently applied. Washington D.C. bankruptcy petitioners with larger families will face even higher hurdles: the median income for a 2 person household has declined by more than $10,000.
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