Median Income Rises Nationally - But Reality for Most is a Little Different
The national median income rose slightly last year, according to a U.S. Census Bureau report, but that's probably scant comfort to consumers in Washington, D.C., where the median income has declined by about $10,000 for 2, 3 and 4 person households. Although the District of Columbia saw the largest decline, the median income for a family of four in Idaho dropped by about $5,000, and the same size family in Mississippi saw a $4,000 decline. New Hampshire median incomes declined for 2, 3 and 4 person households, with 2 person households losing about $4,000 annually.
While these states suffered the largest drops, they're far isolated. 37 states saw a decline in median income in at least one family-size category, and five states showed losses across the board for 2, 3 and 4 person households.
The declining economies in those states undoubtedly create hardships for the consumers who live and work in them. The picture of an improving economy painted by the federal government undoubtedly adds to that stress. But soon--probably as early as October 1--the government will add injury to insult when the U.S. Trustee adopts these new median income figures for use in Chapter 7 means testing.
Then, debtors already impacted by declining income will find themselves subjected to more rigorous testing before Chapter 7 filing, and in some cases be disqualified altogether.
