Photo by Alexander Mils on Unsplash. The recently expired deadline allowing pandemic relief payments from being excluded from the means test was extended to March 27, 2022. Way back at the beginning of the pandemic the CARES Act made some helpful temporary changes to consumer bankruptcy law. (See our blog post in April 2020 about this.) Those changes had expiration … Read More
When you file your bankruptcy case can determine whether you qualify for Chapter 7. Filing sooner may help you pass the means test. Timing Can Be SO Important There are lots of ways you could greatly benefit from meeting with a bankruptcy lawyer sooner rather than later. You may save yourself lots of money by choosing an option that … Read More
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.
Most people easily pass the means test based on their relatively low income. Timing plays a huge role in calculating your income.
With smart timing you can take advantage of the unusual way that your “income” is calculated for the Chapter 7 means test.
Determining your correct “applicable state” can make the difference between passing and failing the means test.
We show by example how the means test works, when a person qualifies for a Chapter 7 case simply by income.
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?
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.
You only have to pass the means test if you have “primarily consumer debts.” If you have more business debts, skip 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.
You hear in bankruptcy about the “trustee,” and maybe about the “U.S. Trustee.” They’re clearly easy to confuse. Who’s the U.S. Trustee?
You must use the right “number of people in your household” to qualify for Chapter 7. It’s not always obvious.
You must use the right “state in which you live” to qualify for Chapter 7. It’s not always obvious.
“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.