Question

Use the following table to help answer the question below.
State
Single-Earner
2-Person
3-Person
4-Person
Florida
$41,226
$52,259
$58,574
$69,009
Georgia
$40,691
$55,258
$61,104
$68,502
Missouri
$39,645
$51,568
$60,371
$71,059
Texas
$38,940
$55,859
$59,222
$66,381
Virginia
$48,362
$65,122
$74,151
$85,939

A family of three living in Georgia is thinking about filing bankruptcy. In order to file for Chapter 7 bankruptcy, what must be true about their monthly income?
a.
The family's monthly income must be less than $5,092.
b.
The family's monthly income must be more than $5,092.
c.
The family's monthly income must be less than $4,605.
d.
The family's monthly income must be more than $4,605.

Answer 1

Answer: a.

Reason: The table lists the annual median income for a 3-person household in Georgia as $61,104. Dividing by 12 gives $61,104 / 12 = $5,092 per month. To qualify for Chapter 7 under the means test, their monthly income must be less than that amount.