I wrote about attorney fees as a means test deduction some time ago. BAPCPA’s provision, codified at section 707(a)(2)(A)(iv) of the Bankruptcy Code, says that priority claims are deducted from income. Priority claims include a Chapter 13 debtor’s counsel’s fees. See sections 507(2), 503(b)(2), and 330(a)(4)(B). Therefore, our attorney fees are a means test deduction. Oddly, the [...]
means test
A Chapter 13 bankruptcy debtor may deduct the full IRS Standards vehicle allowance even though the actual payment may be less, per a decision by Bankruptcy Judge Laura Grandy in the Southern District of Illinois case of In re Scott, 10-32582 (August 8, 2011). When the Supreme Court ruled in Ransom v. FIA [...]
The shocking realization is that your spouse might have to contribute to your Means Test-required payments even if you file alone. You aren’t happy about this at all. ”But they’re my debts. Why should my husband or wife have to contribute?” Because that’s the law. Your income includes all regular contributions to the household expenses [...]
Bankruptcy is in the Bible. In fact, there are plenty of blog posts here on Bankruptcy Law Network about what the Bible says about debt. Kurt O’Keefe’s “Is Filing Bankruptcy a Sin?” is just one of many posts. Most of these posts discuss the Bible and the morality of bankruptcy or apply particular Biblical principles [...]
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) [...]
The bankruptcy means test gets meaner on November 1, 2010, when falling income guidelines go into effect. Consumers thinking of filing bankruptcy who may be close to the median income line should compare the BEFORE and AFTER figures. Filing bankruptcy by Halloween may be a good idea for some consumer debtors. It is no surprise [...]
