means test Tag

28 Sep Means Test and Attorney Fees

I wrote about attorney fees as a means test deduction some time ago.BAPCPA's provision, codifiedat 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,...

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13 Oct Bankruptcy Means Test Gets Meaner

[caption id="attachment_17636" align="alignleft" width="61" caption="Irony"][/caption] 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 that in this down economy, with so many people without jobs or earning significantly less than in the past, that the American median family income is dropping. As the income drops, so do the guidelines for bankruptcy. Ironically, as one makes less money and has more financial problems, it becomes harder to qualify for chapter 7 bankruptcy. The bankruptcy means test relies on the median family income by family size compiled by the U.S. Census Bureau. These figures are updated periodically. The U.S. Trustee Program announced the figures to be applied to bankruptcy cases filed on and after November 1, 2010, yesterday. In Kansas, for example, median income dropped for one, two and four person households and increased $604 for three person households. The result will vary from state to state and household size to household size. On average, an estimated five per cent drop in income was anticipated in these new census figures.
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