Basically, if you are over, then you are a chapter 13. If you are under, then you are a chapter 7.
So I just refunded a retainer payment to some clients who didn’t understand the difference between net and gross. With one child, the magical median income number was $78,581. They told me that their income was sitting at $72,000, so it should have been a simple chapter 7. Once they sent in their paystubs, it showed that they were pulling in $98,000 a year (gross). With payroll deductions, they were netting $72,000 a year (net).When I ran their income figures through my 6 month paystub analysis, Form 122 showed that they had over $2,000 a month left over to pay their creditors off. That means that they would have to be a chapter 13 with a repayment plan of up to $2,000 a month. They didn’t like this development at all, and I refunded their money.
Now remember that these numbers can be adjusted by child support payments (received or made), larger mortgages, huge tax debt, etc. It is a gross overgeneralization to say that if you are over that figure then you MUST be a chapter 13, but this is the baseline we start with. That being said, here are the current figures for Salt Lake County that we use on our Form 122 (6 month average of current monthly income and disposable income):
Married with 1 child: $78,581
Married with 2 children: $88,835
Married with 3 children: $97,835
Married with 4 children: $106,836
Married with 5 children: $115,835
Married with 6 children: $124,835
Married with 7 children: $133,835
Married with 8 children: $142,835
Married with 9 children: $151,835
Married with 10 children: $160,835
If you have more than 10 children, you’re probably going to be below median. I have 11 children, and I know how expensive that can be.