Withdrawals from your IRA or other tax deferred retirement accounts is part of income for purposes of calculating eligibility for Chapter 7 bankruptcy under the means test. Many debtors facing bankruptcy are using retirement income to survive financially, and some debtors over 70 ½ year of age are required to take minimum retirement distributions. Planning retirement distributions intelligently is important for bankruptcy qualification. Continue reading
To qualify for filing Chapter 7 bankruptcy the debtor’s household income must be below the applicable median income, or the family expenses must offset income to the extent that the debtor passes the means test. Bankruptcy debtors do not have to pass the means test if their debts are primarily non-consumer debts. Continue reading
Eligibility for Chapter 7 bankruptcy depends upon family income. An employee’s income is usually clearly determined by his payroll statements during the six months prior to filing. A self-employed debtor’s compensation from his own business typically varies month to month and is not cleanly stated on wage statements.
Many bankruptcy debtor have borrowed money from their retirement plans in an attempt to pay their monthly debt obligations and avoid bankruptcy. The retirement loans require repayment within a certain time in order to avoid income taxation including penalties. Continue reading
Car related expenses are important deductions in the means test analysis in Orlando bankruptcy cases. A debtor’s car expenses, including car payments and car operation expenses, often determine whether a prospective bankruptcy debtor passes a means test analysis for Chapter 7 bankruptcy eligibility. Continue reading