Los Angeles Bankruptcy Issues
Means Test: 401k loan repayment not an Expense
Friday, May 29th, 2009Court rules 401k loan repayments cannot be used in budget on means test to determine eligibility to file bankruptcy.
Means Test for Bankruptcy
Saturday, October 11th, 2008The means test is a budget analysis created by Congress purportedly to determine whether one is ineligible to file for bankruptcy relief under Chapter 7, Chapter 11 or Chapter 13. I say “ineligible” as opposed to “eligible” because in most court districts, “passing” the means test is not conclusive on the issue of eligibility—meaning, that [...]
Ninth Circuit Rules that Means Test Controls Chapter 13 Plan Length and Payment
Friday, June 27th, 2008Earlier 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
Wednesday, June 25th, 2008Under 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) [...]