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Median Family Income: An annual income figure representing the point at which there are as many families earning more than that amount as there are earning less than that amount. The Census Bureau publishes median family income figures for each state each year, depending on family size. In bankruptcy, a debtor whose current monthly income yields an annual figure higher than the median family income in his or her state must pass the means test in order to file for Chapter 7 bankruptcy. If the debtor chooses to or must use Chapter 13, the debtor must propose a five-year repayment plan.

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