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 [...]
means test
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 [...]
Two different clients recently have approached bankruptcy’s means test and the good faith test in Chapter 13 like Momma Grizzlies. Their assumption was that anything they spent on their children was beyond question when it came to qualifying for bankruptcy. One single mother assumed that she was entitled to deduct from the means test her [...]
It is not necessary to have a job to file a Chapter 7 bankruptcy. In fact, the filing of Chapter 7 is probably one of the few instances in your life where it helps to not be employed. When a Chapter 7 is filed, the debtor must show that they do not have enough income [...]
One of the fundamental requirements to confirm a plan in a Chapter 13 bankruptcy is that (unless creditors are paid in full) the Debtor must pay for the benefit of unsecured creditors his or her “projected disposable income” to be received in an “applicable commitment period” (36 or 60 months). Since the enactment of 2005 [...]
In my previous article, I discussed the purpose for which Chapter 13 bankruptcy was originally intended before the credit card lobby convinced Congress that people who file for bankruptcy are bad people. The October 2005 enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) saw the introduction of a new requirement to file [...]
