Court rules 401k loan repayments cannot be used in budget on means test to determine eligibility to file bankruptcy.
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Los Angeles Bankruptcy Blog: Current issues, comments, questions and answers in bankruptcy law.
Category Archives: Los Angeles BK Issues
Means Test for Bankruptcy
What is the means test in bankruptcy? What does it mean? How is it calculated?
Ninth Circuit Rules that Means Test Controls Chapter 13 Plan Length and Payment
Earlier this month, 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…
Bankruptcy Can Remove Liens Against Your Home
Under certain circumstances, in California, junior liens (deeds of trust) can be removed from your home in a Chapter 13 bankruptcy case. This is known as “lien-stripping.” The way it works is: If the fair market value of your home is less than the amount owed on your first mortgage, you can lien strip (remove)…