MEANS TEST & BANKRUPTCY REFORM ACT (BAPCPA)
AT LEAST 90% OF YOU
In my experience at least 90% of you who could have filed a Chapter 7 or
Straight Bankruptcy before the laws changed still can with almost the
same results as before. The Means Test is a test of your ability to pay
your consumer debts. It's goal was to move higher income earners into
Chapter 13 Bankruptcies. A Chapter 13 Bankruptcy, also called a
Consolidation Bankruptcy, is a Bankruptcy with a monthly payment plan
where you pay back your creditors all or a portion of the balances you
owe them.
While most folks will still qualify for chapter 7 bankruptcies, some will not. If you make too much money and don't have enough allowable deductions under the Means Test, a Chapter 13 may be right for you.
THE MEANS TEST ASKS:
- How Big is Your Family?
- Do you have extended family members living in the home and did you claim them as dependents on your tax returns? Not that you have to. How much do those extra family members earn and contribute to the household? Are your parents living with you, and do they have an income? Does your little sister who is still a full time student live with you? Does she have a part time job or does she provide your daycare for your babies?
- What is Your Gross Income?
- Is your Gross Income close to or above the Median Income for a family of your size in your state? If yes, then you have to go through a lot of other questions such as what are your payroll deductions and which of those payroll deductions are allowable. What business deductions do you have, if any? Do you have good reasons to have higher than usual expenses and can you document them? Do you pay tithing? Do you have an unreimbursed cell phone for work and so on?
You can still file! - FILE AWAY Debt - Contact Us Now!
