Question

Stephen lives in Texas and makes $48,000 a year. If the median annual income in Texas is $51,205 and the median annual income in the United States as a whole is $50,233, is Stephen likely to qualify for Chapter 7 bankruptcy?

A.Yes, Stephen is likely to qualify, since his yearly income is below the median annual income of Texas.
B.No, Stephen is not likely to qualify, since his yearly income is above the median annual income of the United States as a whole.
C.Yes, Stephen is likely to qualify, since his yearly income is above the median annual income of the United States as a whole.
D.No, Stephen is not likely to qualify, since his yearly income is below the median annual income of Texas.

Answer 1

Stephen is likely to qualify since his annual income is less than the median income of Texas.

Answer 2

Yes, Stephen will qualify for chapter 7 bankruptcy.

Explanation:

A person qualifies for chapter 7 bankruptcy when his income is less than the median income of his state.

Here, we have been provided with the information that, Stephen lives in Texas and makes $48,000 a year and the median annual income in Texas is $51,205.

We can see that Stephen's income is less than his state's median income. So, yes he will qualify for chapter 7 bankruptcy.