To file a Chapter 7 one must qualify under the means test. Well, that is the layman’s explanation. What is actually going on is that one must go through a formula of looking at their currently monthly income as derived from the last six months preceding the month in which the bankruptcy is filed to see if there is a presumption that filing Chapter 7 is an abuse of the bankruptcy system. 232 more words
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Can I Still Provide Financial Assistance to Elderly Relatives if I File Chapter 7 or Chapter 13 Bankruptcy?
Financial assistance provided on a regular, monthly basis to elderly or dependent family-members outside of your immediate household is an expense that Congress allowed in the drafting of the US Bankruptcy Code. 99 more words
Some small business owners inquire as to the possibility of artificially lowering their income or taking less wages out of their business prior to filing a bankruptcy petition in order to pass the Chapter 7 means test. 70 more words
An annual bonus or other “extra” income received within the 6 months prior to the filing of a Chapter 7 or Chapter 13 bankruptcy must be disclosed and computed in the bankruptcy means test which determines Chapter 7 eligibility and determines whether you are eligible to propose a 36-month Chapter 13 payment plan rather than a longer payment plan. 61 more words
As of May 1, 2012, the Federal US Trustee Program is again updating their means test household median income numbers for Michigan. The news is good for prospective Chapter 7 Bankruptcy filers as the median incomes for households of various sizes have increased slightly—meaning that you can earn a little more money than previously and still be eligible for Chapter 7. 44 more words
Chapter 7 bankruptcy may be available to prospective filers whose debts are mostly business debts rather than consumer debts regardless of their actual income.