Question

Chad lives in California and makes $59,500 a year. If the median annual income is $61,021 in California and $50,233 in the United States as a whole, is Chad likely to qualify for Chapter 7 bankruptcy?

A.No, Chad is not likely to qualify, because his yearly income is above the median annual income of the United States as a whole.

B.Yes, Chad is likely to qualify, because his yearly income is below the median annual income of California.

C.No, Chad is not likely to qualify, because his yearly income is below the median annual income of California.

D.Yes, Chad is likely to qualify, because his yearly income is above the median annual income of the United States as a whole.

Answer 1

Yes, Chad is likely to qualify, because his yearly income is below the median annual income of California.

Answer 2

B.Yes, Chad is likely to qualify, because his yearly income is below the median annual income of California.

Explanation:

A person qualifies for chapter 7 bankruptcy, if his income is below the median yearly income of his state.

Here, it is given that Chad lives in California and makes $59,500 a year and the median annual income is $61,021 in California.

We can see that Chad is earning less than the median income of his state, so he will qualify for chapter 7 bankruptcy.

Therefore, the correct answer is option B.