Smart timing of your Chapter 13 case can reduce its length by as much as two years, saving you tons of money and letting you get on with life. In our last blog post we explained how your last 6 calendar months of income can determine whether your Chapter 13 payment plan lasts 3 years or instead 5 years. … Read More
Which Month You File Chapter 13 Can Cut Years Off Your Case
If you definitely need a Chapter 13 case, which month you file it can make the difference between your payment plan lasting 3 years or 5. In two blog posts last month (November 12 and 19) we showed how filing bankruptcy by the end of December 31 might allow you to file a Chapter 7 “straight bankruptcy” case instead … Read More
The Easiest Way to Pass the Means Test
We show by example how the means test works, when a person qualifies for a Chapter 7 case simply by income.
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.
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 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.
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.
It’s Not Just You–The Income of Americans Has Been Declining During the “Recovery”
Not only have our incomes continued to go down since the recession officially ended, they’ve gone down more than they did during the recession.