Disadvantages of a Badly-Timed 5-Year Chapter 13 Case
Following up on last week's scenario, here are the financial, credit record, and other disadvantages of a forced 5-year Chapter 13 plan.
Filing Chapter 13 in January May Greatly Shorten Your Case
Do you need a Chapter 13 case? WHEN you file it can mean the difference between a payment plan that takes 3 years and one that takes 5.
Scenario: Filing Chapter 13 Now Shortens a Case by Two Years
Here's a scenario showing how the timing of your Chapter 13 filing can shorten your payment plan from 5 years to only 3.
Pass the Means Test by Filing Bankruptcy in 2018
The timing of your bankruptcy filing can determine whether you qualify for quick Chapter 7 vs. paying into a Chapter 13 plan for 3-5 years.
Why Timing Can Be So Crucial for the Means Test
The timing of your Chapter 7 filing--a difference of even just a day or two--can affect whether you qualify for it based on your income.
Timing Can Be Crucial for Passing the Means Test
With smart timing you can take advantage of the unusual way that your "income" is calculated for the Chapter 7 means test.
Your “Applicable State” for the Means Test
Determining your correct "applicable state" can make the difference between passing and failing the means test.
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 Your State for the “Means Test”?
You must use the right "state in which you live" 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.
Residential Income Segregation Varies Widely Across the U.S.
Increasingly, the rich live among the rich, and the poor among the poor. Especially in the big cities of Texas. Less so in Miami, Cincinnati, Boston, Sacramento, and Portland.
What is”Median Family Income”; If You’re Making More,Can You Still File Chapter 7?
If your family income is more than the "median family income," you may still be able to file under Chapter 7.
