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. Yes, Chad is likely to qualify, because his yearly income is above annual income of the United States as a whole. qualify, because his yearly income is
the median
B. No, Chad is not likely to above the median annual income of the United States as a whole. likely to qualify, because his yearly income is below annual income of California.
C. Yes, Chad is
the median Chad is not likely to qualify, because his yearly income is the median annual income of California.

Answer 1

Chad's income is below the median for California, which suggests he might qualify for Chapter 7 bankruptcy, but a full means test considering all his expenses and debts is necessary to determine eligibility.

Step-by-step explanation:

Whether Chad qualifies for Chapter 7 bankruptcy depends not only on his income but also on the means test, which compares his annual income to the median income for a household of his size in his state. Given that Chad's income is $59,500, which is below the median annual income of $61,021 for California, he may qualify for Chapter 7, as his income is below the state median. However, the means test includes other factors, such as expenses, debts, and the size of Chad's household, which could influence the outcome. It is also important to consider that, besides cash income, there are government programs such as Medicaid and federal housing assistance that can aid low-income individuals and are not accounted for in the poverty line.