You must use the right “state in which you live” to qualify for Chapter 7. It’s not always obvious. Our last blog post a couple days ago was about the unique definition for “income” as used in the “means test.” Understanding this definition and applying it to your advantage can be ... Read More »
What is Considered “Income” for the Chapter 7 “Means Test”
“Income” is not what you think it is—it’s much broader than usual and fixates on the 6 full calendar months before your bankruptcy filing. Our last blog post a couple days ago was about an upcoming cost of living adjustment of median family income amounts. This ... Read More »
The New Median Income Amounts for the Chapter 7 “Means Test”
Besides the many 3-year cost of living increases happening on April 1, 2016, new median income amounts also start applying on the same day. Last week we finished a series of about a dozen blog posts related to an every-3-year cost of living adjustment of many of the dollar amounts that are ... Read More »
The Military Exemptions from the Chapter 7 “Means Test”
You qualify for Chapter 7 without having to pass the “means test” if you fit within these very specific military-related exemptions. Short Introduction to the “Means Test” The “means test” determines whether you have enough income after your expenses ... Read More »
A Fresh Start against Your Co-Signer
Through bankruptcy, you may be able to and want to pay a co-signed debt. If not, you need protection from that debt and from your co-signer. A friend or relative may have helped you earlier by co-signing a debt for you. But now you find yourself needing relief from all or most of your debts ... Read More »
Bankruptcy Timing and the Holidays: Filing in 2016 to Cover More Income Taxes
During the first months of 2016 your bankruptcy can write off more of your tax debts. Filing bankruptcy at the right time in 2016 can help you deal with income tax debts in two main ways: Discharging (legally writing off) more of your tax debts (likely for the 2012 tax year), under a ... Read More »
Bankruptcy Timing and the Holidays: Gift-Giving and “Fraudulent Transfers”
Gift-giving, or selling for much less than actual value, can cause problems ahead of bankruptcy, but only if it’s a large gift. “Fraudulent Transfers” Usually Not an Issue This blog post is about a topic to be aware of but one that’s seldom an issue for consumers or ... Read More »
Bankruptcy Timing and the Holidays: “Preference” Payments
You may have extra motivation and greater ability to repay a personally important debt this time of year. But maybe you shouldn’t. Careful about Paying a Favored Creditor Around the holidays you may be extra motivated to pay back a personal loan. The relative or friend may be in real ... Read More »
Bankruptcy Timing and the Holidays: Extra Income in December Affecting the “Means Test”
We show step-by-step how filing bankruptcy before the end of December can enable you to qualify for Chapter 7 “straight bankruptcy.” Have you received or are you expecting any extra money from any source during December? It’s probably the month when that’s most likely. ... Read More »
Bankruptcy Timing and the Holidays
Filing bankruptcy in December instead of January can make the difference between qualifying for Chapter 7 and being forced into Chapter 13. If you have a serious debt problem, you may be doing your best during the holiday season to work around it. You feel you need to get through the next few ... Read More »
