The new median family income numbers used for determining whether a debtor can file a Chapter 7 bankruptcy went into effect today, November 1, 2010. The numbers are provided by the U.S. Census Bureau. The means test was one of the major changes that occurred as part of Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) [...]
Means Testing
A little over a year ago, Bankruptcy Law Network contributor Cathy Moran wrote a post on this blog about the 9th Circuit’s decision in the MBNA v. Ransom case. At issue was the question of whether an above-median debtor could claim the “ownership deduction” in a means test calculation even if that debtor owned his [...]
The income figures used for determining bankruptcy eligibility are changing again November 1, 2010. The numbers come from the Census Bureau, which reports median family income by state. The U.S. Trustee takes that data and updates the bankruptcy means test. The U.S. Trustee expects to post modified revised means test charts to its website on [...]
If you’re a higher income peron considering bankruptcy, think about this: the biggest landmine in the means test is one that’s not even in the means test itself. Instead, this landmine is present because of human nature, the attorney client relationship, and the unique legal issues contained in the means test. Rather than step on this [...]
Most people who make more than the median income must pass the means test if they want to file a chapter 7 case. But people whose debts are not primarily consumer debts don’t have to pass the means test. What does this mean? Well, first we need to know what consumer debts are. The Bankruptcy [...]
Bankruptcy debtors who receive substantial mileage reimbursement checks from their employers often puzzle over how to account for this “income” on their bankruptcy statements or in the means test. Because these schedules form the basis for qualifying for chapter 7, or for calculating the proper amount of a chapter 13 payment, large mileage reimbursement checks can [...]
