Bankruptcy gives you options for taking charge of your financial life.
Family Size in the “Means Test”
You must use the right “number of people in your household” to qualify for Chapter 7. It’s not always obvious.
Picking the Right 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.
The Special Meaning of “Income” for the “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 “Means Test” and its New Median Family Income Amounts
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 Exceptions to the “Means Test”
You qualify for Chapter 7 without having to pass the “means test” if you fit within these very specific military-related exemptions.
The “Means Test” Business Debt Exception
If your debts are not “primarily consumer debts” then you may be able to qualify for Chapter 7 bankruptcy much more easily.
Increased Odds for Getting Paid Wages Owed by Your Bankrupt Former Employer
Here’s an adjustment in the law that can benefit you if you are owed wages and/or benefits by a person or business filing bankruptcy.
Some Larger Households about to Have Shorter Chapter 13 Cases
Soon families of larger than 4 people can have a bit more income and qualify for a 3-year Chapter 13 payment plan instead of a 5-year one.
Debt Limits Are Increasing
As of April 1, 2016 you can have a little more debt and still qualify for a Chapter 13 “adjustment of debts”
A “Means Test” Calculation Adjustment
As of April 1, 2016 you can have a little more “disposable income” and still pass the “means test” to qualify for Chapter 7 bankruptcy.
A Limit for State Homestead Exemptions
Bankruptcy law sets a maximum dollar amount of protection for your recently-bought home, but this really applies to only a few states.
The New IRA Exemption Limit
Most pensions and other retirement funds are “exempt”–completely protected when you file bankruptcy. But there’s an exemption cap for IRAs.