means test
Re-filing Chapter 7 Bankruptcy Case After Prior Dismissal
Tuesday, May 4th, 2010I 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.” There are penalties for filing subsequent bankruptcy cases within one [...]
Does Filing CH. 13 Bypass the Means Test?
Wednesday, September 16th, 2009Does filing Chapter 13 instead of Chapter 7 alleviate the requirement of the means test?
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.
Debt Consolidation or Bankruptcy: Which is Better?
Wednesday, February 4th, 2009One of the most frequent questions bankruptcy attorneys are asked by potential clients is whether they should file bankruptcy, or use a debt consolidation company to make payments towards their debts. For those lucky debtors who qualify for Chapter 7 (which requires no repayment of debts but allows in most cases for discharge of all [...]
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 [...]
Short Sales or Foreclosures: Which is Better?
Thursday, September 18th, 2008There is an epidemic of people defaulting on their mortgage payments, as everyone knows. Real estate brokers are pushing hard to have people do “short sales” on their properties, instead of allowing them to go to foreclosure. In most circumstances, this is a very bad idea. What is a short sale? A short sale occurs [...]
Non-Filing Spouse’s Income Must Be Included in Bankruptcy
Thursday, July 17th, 2008The fact that a non-filing spouse’s income must be included in the bankruptcy case of the other spouse is one of the most difficult concepts for my clients to grasp. The common scenario is this: One spouse has certain debts which are only in that spouse’s name and may have even been incurred entirely prior [...]
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 [...]