I was asked a question in a forum: If a chapter 7 bankruptcy case gets dismissed for "failing" the means test, under 707(b) of the bankruptcy code (11 U.S.C. 707(b)), is there any time limit on re-filing? The answer is, for most cases, "no." But Automatic Stay May Be Affected There are penalties for filing subsequent bankruptcy cases within one year after a prior case has been dismissed. The main penalty is that the automatic stay, which prevent creditors from [...]
Does filing Chapter 13 instead of Chapter 7 alleviate the requirement of the means test?
Court rules 401k loan repayments cannot be used in budget on means test to determine eligibility to file bankruptcy.
It's hard to know which direction to go when faced with debt problems. Debt consolidation is one option many utilize to get a handle on their debts. But the typical debt consolidation programs don't save you any money. In fact you're really just paying someone else to make your payments for you, and you're still paying interest and other charges on your debts. Or you are just taking out one new loan to pay off all of your numerous older [...]
What is the means test in bankruptcy? What does it mean? How is it calculated?
Is it best to short sale your property, or allow it to be foreclosed on?
In bankruptcy, being married has its advantages and disadvantages. One disadvantage is that a non-filing spouse's income must be included in the eligibility analysis for the bankruptcy case of the other spouse. Both Spouse's Incomes Must Be "Included" In Bankruptcy Schedules Here's the scenario: One spouse has certain debts which are only in that spouse's name and may have even been incurred entirely prior to the marriage. He (or she) wants to file a bankruptcy to deal with those debts [...]
Means Test Controls Chapter 13 Length and Payment Amount The Ninth Circuit Court of Appeals in Maney v. Kagenveama (In re Kagenveama), 527 F.3d 990 (9th Cir. June 2008) held that where an above-median chapter 13 debtor has negative “disposable income” per the means test but a monthly surplus per schedules I and J, the debtor is NOT required to propose a five year plan and the plan payment need not be based on the surplus. Since the new bankruptcy [...]