Consumer Bankruptcy Changes in the CARES Act
The massive $2.2 trillion coronavirus relief law also includes some legal relief for both Chapter 7 and Chapter 13 consumer debtors.
A Chapter 13 Plan That Involves Income Tax
Here's an example of a Chapter 13 payment plan to pay income tax, showing how you pay what you can afford and avoid some interest, penalties.
The Chapter 13 Plan
Chapter 13 revolves around your payment plan, which you propose based on your budget, and possibly negotiate with creditors and the trustee.
Your “Applicable State” for the Means Test
Determining your correct "applicable state" can make the difference between passing and failing the means test.
A Simple Example of Passing the Means Test
We show by example how the means test works, when a person qualifies for a Chapter 7 case simply by income.
No Means Test If You Have More Business Debts than Consumer Debts
You only have to pass the means test if you have "primarily consumer debts." If you have more business debts, skip the means test.
The Chapter 7 Means Test
You have to pass the means test to qualify for a Chapter 7 case. It's often an easy test to pass but one with some crucial twists and turns.
What If I’m Too Far Behind on My Rent?
In a Chapter 13 "adjustment of debts" you have much more time to get current on your residential lease agreement than under Chapter 7.
Objecting to a Proof of Claim to Defeat a Creditor
If your liability dispute with your creditor spills into your Chapter 13 case, the bankruptcy court may be a good forum to fight it out.
Creditors Paid Nothing under Chapter 13
Chapter 13 payment plans usually have you pay something to all of your creditors. But not necessarily. Certain creditors may get nothing.
Debt Write-off under Chapter 13
The discharge of debts is just one of the tools of Chapter 13 for achieving your financial goals. It works differently than in Chapter 7.
What Is Size of Your Family for the “Means Test”?
You must use the right "number of people in your household" to qualify for Chapter 7. It's not always obvious.
What is Considered “Income” for the Chapter 7 “Means Test”
"Income" is not what you think it is--it's much broader than usual and fixates on the 6 full calendar months before your bankruptcy filing.
The New Median Income Amounts for the Chapter 7 “Means Test”
Besides the many 3-year cost of living increases happening on April 1, 2016, new median income amounts also start applying on the same day.
The Military Exemptions from the Chapter 7 “Means Test”
You qualify for Chapter 7 without having to pass the "means test" if you fit within these very specific military-related exemptions.