Part of the “reforms” passed in the 2005 Bankruptcy Act included a restriction on filers in Chapter 7 based on income. Simply (or simplistically) put, a Chapter 7 debtor must meet certain income requirements before filing; if the debtor’s income exceeds the median income for the debtor’s household size in his or her state, then the debtor must pass an extended “means test” purportedly designed to predict whether the debtor can afford to repay his or her debts, as opposed to receiving the benefits of the liquidation model of bankruptcy relief. If the debtor “fails” the means test, she or he will be forced to file for Chapter 13. Since a sizable portion of Chapter 13 plans fail, this is a crucial inquiry for most debtors.

The median income numbers, of course, are adjusted regularly to reflect the current economic reality. The new numbers, effective February 1, 2008, for use in bankruptcy forms 22A and 22C, are now public. For South Carolina, the new numbers are as follows:

• For a single-person household: $35,185
• For a 2-person household: $46,521
• For a 3-person household: $52,992
• For a 4-person household: $61,362
• Per each person over 4: $6,900