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Tag : means test

Chapter 7 Bankruptcy Eligibility; Do You Qualify?

Chapter 7

A Chapter 7 bankruptcy is known as a “liquidation bankruptcy” case where the person filing for bankruptcy protection has no money to repay their debt.  This type of bankruptcy case has certain eligibility requirements. THE MEANS TEST To be eligible, a debtor (person filing for bankruptcy protection) must pass the Means Test.  This means that […]

New Median Income Figures Effective May 1, 2012

Chapter 7

California Median Household Income Tables Effective May 1, 2012 No. of People in Household Gross Monthly Income Annual Gross Income 1 $4099 $49,188 2 $5290 $63,481 3 $5677 $68135 4 $6430         $77,167 5 $7055 $84,667 6 $7680 $92,167 7 $8305 $99,667 8 $8930 $107,167 9 and above Add $625 per person Add $7500 per person […]

Ransom’s Key Means Test Case to be Decided By Supreme Court

Chapter 13

 In Chapter 7 Basics, I wrote briefly about the means test that was created in 2005 under BAPCPA where MBNA Bank, N.A. worked hard to make it more difficult for consumer debtors to qualify to file bankruptcy under Chapter 7 and created more disposable income to pay creditors under Chapter 13. It’s interesting to note […]

Do You Have Too Much Income For Chapter 7?

Chapter 7

The bankruptcy rule changes from Bankruptcy Abuse Prevention and Consumer Protection Act 0f 2005, or BAPCPA, created the Means Test formula for determining whether a consumer qualified to file bankruptcy under Chapter 7 of the Bankruptcy Code. Basically, the means testing requires that the debtor’s income must be below the median level for households, using Census […]

Chapter 7 Basics

Chapter 7

In determining eligibility to file for a chapter 7 bankruptcy, the basic qualifying factor is income under the Means Test as set forth in 11 U.S.C. 707(b)(2).  The debtor’s income must fall below the Census Bureau’s Median Income by Family Size.   Thus, the Means Test is a two prong test: The first prong being the […]

Median Income Changes Means Test

Chapter 7

New median income figures take effect November 1, 2009.  The change in median income levels will have a direct impact on those seeking debt relief through chapter 7 bankruptcy because of the means test.  Individuals seeking to file chapter 7 bankruptcy must pass the means test   in order to qualify; otherwise they will be required […]