You can have more income for the purpose of passing the means test as your household size increases. But what IS your household’s size?
The Military Exemptions to the Means Test
There are two military-related exemptions from the Chapter 7 means test. They are narrow but if you qualify it can be a major advantage.
Avoid the Means Test If You Don’t Have “Primarily 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 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.
A Simple Chapter 7 Asset Case
Chapter 7 “asset” cases may sound scary. They needn’t be. We walk you through a very straightforward example to demystify this.
An Asset Chapter 7 Case
Most Chapter 7 cases are “no-asset” ones. So, what’s an “asset case,” and is it good or bad for you?
The Chapter 7 Trustee Can Abandon Property
Just because you own something that’s not exempt doesn’t always mean that the Chapter 7 trustee will take it. The trustee could abandon it.
Reasons a Chapter 7 Trustee May Not Take Your Non-Exempt Property
Just because you own something that isn’t exempt does not necessarily mean that your Chapter 7 trustee will liquidate it. Maybe not.
Your No-Asset Chapter 7 Case
Most individual consumer Chapter 7 cases are “no asset” ones. This means that the Chapter 7 trustee doesn’t liquidate any debtor assets.
Treatment of Proceeds, Rents, and Profits under Chapter 7
Assets acquired after filing under Chapter 7, such as wages, can’s be reached by the trustee. But watch out for proceeds, rents and profits.
Divorce Property Division Right After Filing Bankruptcy
The 180-day rule also applies to marital property division, whether by agreement or court decree.
Treatment of Death Benefits in Chapter 7
The 180-day rule applicable to life insurance proceeds also applies to death benefits overall. Death benefits may also often be exempt.
Protecting Life Insurance Proceeds
The 180-day rule applies to life insurance proceeds in a Chapter 7 case. But life insurance proceeds are often exempt, or protected.