Families in Orlando, Daytona Beach, Ormond Beach, and Palm Coast will find it more difficult to qualify for Chapter 7 bankruptcy on November 1, 2011.

The State Median Family Income by Family Size for bankruptcy gets updated from time to time. In the past, for the most part, the numbers would go up.

But lately, the numbers have been decreasing.

In Florida, they income numbers are as follows:

  • Household of 1 = $41,334
  • Household of 2 = $51,839
  • Household of 3 = $53,952
  • Household of 4 = $63,196
  • Add $7500 for each person over 4

For example:  If you in are a household of 3 (say both you and your spouse work), and your total income is more than $52,840, you are above median (average) and you must pass the means test.

That isn’t the end of the world. When the bankruptcy means test is completed (allowing for payroll deductions, car payments, mortgage payments, daycare, etc.), many people qualify for chapter 7.

But what the new figures highlight is that the median income has dropped in Florida. But your debt has probably risen (due to high interest, job layoff, unexpected expenses put on the credit card).

So are you finding it harder to pay down or even just maintain the balances on your unsecured debt?

Will you wait too long, making almost useless minimum credit card payments before seeking help?

Don’t wait for another drop in the median income tables before you decide bankruptcy may be your best option.