Question

question 17 of 25
jerry lives in new mexico and makes $52,000 a year. if the median annual income in new mexico is $53,731 and the median annual income in the united states as a whole is $50,233, is jerry likely to qualify for chapter 7 bankruptcy?
a. yes, jerry is likely to qualify, since his yearly income is above the median annual income of the united states as a whole.
b. no, jerry is not likely to qualify, since his yearly income is below the median annual income of new mexico.
c. yes, jerry is likely to qualify, since his yearly income is below the median annual income of new mexico.
d. no, jerry is not likely to qualify, since his yearly income is above the median annual income of the united states as a whole.

Explanation:

To qualify for Chapter 7 bankruptcy, one of the criteria is that the debtor's income is below the median income of the state where they live. Here, Jerry's income (\( \$52,000 \)) is compared to the New - Mexico median income (\( \$53,731 \)). Since \( 52000<53731 \), he meets the income - based criterion for Chapter 7 bankruptcy qualification. The median income of the whole United States (\( \$50,233 \)) is not the relevant metric for state - level Chapter 7 qualification.

Answer:

C. Yes, Jerry is likely to qualify, since his yearly income is below the median annual income of New Mexico.