Tag archive for ‘means test’
Qualifying For Chapter 7 With High Income
by Drew Broaddus on 8/18/10 | 0 Comment(s)
Much has been written about the means test since it was enacted as part of the 2005 amendments to the Bankruptcy Code, also known as the BAPCPA. For an excellent explanation of what the means test is, see Lori Patton’s recent contribution at the National Bankruptcy Forum. Despite the fact that it is frequently written about, the [...]
Qualifying For Chapter 7 Bankruptcy: The Means Test Made Simple (Sort of)
by Moderator on 7/26/10 | 0 Comment(s)
Much has been written about the now infamous means test; Congress’ answer to the credit card lobby’s complaints that too many Americans who could afford to pay back some of their debts were allowed to file for chapter 7 bankruptcy. The means test effectively tries to divert some consumers with “above average” income into a [...]
Paying for your child’s college expenses won’t help you qualify for Chapter 7
by Stephen Trezza on 6/14/10 | 0 Comment(s)
Thanks to the means test, in order to qualify for chapter 7 bankruptcy your disposable income must be under a certain level. Basically if you have lots of money left over after “allowed” monthly expenses, you may not qualify for chapter 7 under the “new” bankruptcy laws. Car payments, house payments and many other living [...]
U.S. Government Revises Means Test Numbers For Bankruptcy Filers
by Drew Broaddus on 3/12/10 | 1 Comment(s)
As I have discussed on the O’Connor, DeGrazia, Tamm & O’Connor website (and as several bankruptcy attorneys have discussed here), in order to qualify for Chapter 7 protection, individuals must satisfy the “means test,” which is a formula designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. 11 U.S.C. § 707(b). [...]
Did A Holiday Bonus Give You An “F” On The Means Test?
by Moderator on 1/21/10 | 0 Comment(s)
The Means Test was implemented as part of the 2005 bankruptcy reforms with the goal of making it more difficult for those with the “means” to pay back their creditors to file for chapter 7 bankruptcy. The means test looks at a consumers current monthly income or “CMI.” CMI is defined as average gross earnings [...]
Does Failure to pass the Means Test Automatically Cut Off Chapter 7 Eligibility?
by Lori Patton on 12/30/09 | 4 Comment(s)
Short Answer: There’s still some hope, but hold on tight. Long Answer: I hate the Means Test. I have just this second decided that will be the subject of my next posting as explaining why would take some time. Suffice it to say, it doesn’t make any sense. So we have the Means Test that [...]
I’ve found a new job, will I still be able to file for bankruptcy?
by John O'Connor on 11/15/09 | 0 Comment(s)
I’ve found a new job, can I still file bankruptcy? If you’ve read this blog with any frequency, you’ve undoubtedly seen numerous posts about bankruptcy reform and the means test. Indeed, much has been written about the means test, the vaunted gatekeeper to chapter 7 bankruptcy protection implemented by Congress as part of BACPA in [...]
Household Size and the Means Test
by Richard O'Connor on 11/12/09 | 3 Comment(s)
The “Means Test” was implemented in 2005 as a way of preventing consumers with the ability to pay back their debts from filing for chapter 7 bankruptcy. Determining a household size for purposes of the Means Test can be simple or complicated depending on the family. The proper method for determining household size is an [...]
Accounting for a non-filing spouse’s income in a chapter 7 bankruptcy
by Richard O'Connor on 11/02/09 | 0 Comment(s)
Much has been written about the bankruptcy reforms of 2005. The bottom line for consumers is that Congress attempted to make it more difficult to file a chapter 7 case by imposing income requirements. When Congress enacted the Bankruptcy Abuse and Prevention Consumer Protection Act of 2005 (BAPCPA), it overhauled the eligibility requirements for filing [...]
Is A Non-Filing Spouse’s Income Included In The Determination of Bankruptcy Qualification?
by Jeff Herrick on 5/20/09 | 0 Comment(s)
If a married person files for bankruptcy and does not include his/her spouse in the filing, the income earned by the nonfiling spouse must be included in the means test calculation. According to the bankruptcy code the spouse’s income must be accounted for to the extent that the nonfiling spouse contributes on a regular basis [...]
