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 →

A debtor files a Chapter 13 bankruptcy and makes plan payments for several months. Then, the debtor loses his job and is unable to make the Plan payments. The debtor files a notice of conversion to Chapter 7. Continue reading →

Chapter 7 bankruptcy debtors are excused from the means test if their debts are primary non-consumer debts. The distinction between what is a consumer debt and what is a non-consumer debt is sometimes unclear. Continue reading →

The means test allows debtors an deduction and income offset for secured debt payments. The greater amount of monthly secured debt payments the more likely a debtor is to pass the means test.

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.
Continue reading →

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 →