October 2012

31 Oct Does it Make a Difference if I File Bankruptcy Tomorrow or Today?

If you wait to file a bankruptcy petition until tomorrow instead of filing it today, it may make a huge difference. Sure, today is Halloween, but that is not the reason it could make such a difference what day you file your bankruptcy case. Timing could be everything. If your income is above the median income for your household size in your state, you must complete a “means test”when you file your bankruptcy petition. To determine whether you are above or below the median income, your gross income for the six month period prior to the month you file bankruptcy is considered. So if you file today, October 31, the six month period under examination is April through September. If you file tomorrow, November 1, the six month period excludes April but adds October. If you get the exact same paycheck each payday, this won’t make a difference. But what if you got a lump sum bonus or (like one of my clients who filed their case today) a retroactive pay raise in one of your October paychecks? In that case, you could be under the median today, but well over it tomorrow.
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29 Oct Chapter 13 Debtor Not Required to Include Monthly Social Security Benefits in Chapter 13 Plan as Projected Disposable Income

The U.S. Court of Appeals, Tenth Circuit, recently held that a bankruptcy debtor's chapter 13 plan is not required to take Social Security benefits into account in calculating monthly"projected disposable income" under section 1325(b)(1). The court also held that it was not bad faith to...

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