Whether or not someone can still file, and which Chapter is appropriate, depends on so many individual factors. The new law requires a complicated and complex review of factors of past income, future income, average expenses for your local area, true expenses, how many are in your household, what taxes you pay, how much you spend on a variety of items, and the list goes on.If you make above the median income for your area, you are required to take a means test to determine if there appears to be discretionary income leftover which give you the means to repay some, or all, of your debts. If you have discretionary income, you are supposed to file Chapter 13 instead of Chapter 7. Actually, this was also the rule under the old law. The old law looked at actual income and expenses. The new bankruptcy law requires that as well as additional application of formulas to determine if there is leftover income, at least according to the formula.
Many people think because their income is greater than median income, they can no longer file. That is not true. Being above median means that you must take the means test, not that you don’t qualify for filing. Even if you don’t pass the means test, there are special circumstances which may apply.
Don’t jump to conclusions without speaking to an attorney who can apply all the factors to your case.
see also: http://www.moranlaw.net/means_test.htm
No related posts.
You must log in to post a comment.