Most Chapter 7 “straight bankruptcy” cases are in fact straightforward. Here are two of the main circumstances that create complications. Your Income is Higher than “Median” To qualify to file for a Chapter 7 “straight bankruptcy” case, you have to ... Read More »
What’s the Size of Your Family for the “Means Test”?
Use the right “number of people in your household” to qualify for Chapter 7. Sometimes obvious, but not always. Our last blog post last week was about which state to use for the “means test” when you have connections to more than one state. The way you answer that question can be crucial ... Read More »
What Is Your State for the “Means Test”?
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 ... 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 »
Larger Families More Likely to Qualify for Shorter Chapter 13 Cases
Soon families of larger than 4 people can have a bit more income and qualify for a 3-year Chapter 13 payment plan instead of a 5-year one. How could it be that larger families can have shorter Chapter 13 “adjustment of debts” cases? The reason is that on April 1, 2016—as ... Read More »
A Chapter 7 “Means Test” Calculation Adjustment
As of April 1, 2016 you can have a little more "disposable income" and still pass the "means test" to qualify for Chapter 7 bankruptcy. Means Test The “means test” determines whether you have enough income after your expenses (that is, enough “disposable income”) to ... Read More »
Bankruptcy Timing and the Holidays: Filing in January to Qualify for Chapter 7 or Shorten Chapter 13 Case
Think about filing bankruptcy in early 2016 if you had some extra source of money in mid-2015. Some people can take advantage of the peculiar way that bankruptcy law calculates “income” for purposes of the “means test” by filing their Chapter 7 case with the right ... Read More »
Making Sense of Bankruptcy: The Truth about Qualifying to File a Chapter 7 Case
The reality is that most people who want to file a “straight bankruptcy” Chapter 7 case can do so; if not, Chapter 13 may be better anyway. Here's the sentence we're exploring today: Although there’s some understandable confusion about this, if a Chapter 7 bankruptcy would ... Read More »
