Tag Archives: means test

How You Can Help Some Clients Avoid the Bankruptcy Means Test

How You Can Help Some Clients Avoid the Bankruptcy Means Test Your client comes in and fails both the initial level and the second level of the Bankruptcy Means Test. The presumption of bad faith is there. What do you do? Maybe you do not have to do anything. Maybe the bankruptcy means test does…

Do It Yourself Bankruptcy

Do It Yourself Bankruptcy Do it yourself bankruptcy can be tempting, especially where funds are limited. After all, the whole reason to file a do it yourself bankruptcy is that you are broke! I mean like, how hard can this be? After all, there are paralegals who will give you legal advice about all the…

Disabled Veterans and the Bankruptcy Means Test

Disabled Veterans and the Bankruptcy Means Test

Are you a Veteran considering filing bankruptcy, you may have some surprising help with qualifying to file your case.

As part of the changes in the bankruptcy laws in 2005, most people who have income above the “median income” have to go through a special analysis called the “statement of current monthly income.” Commonly referred to as the “means test,” or the “median income test” its’ sole purpose is to force as many people as possible to spend 3-5 years in a Chapter 13 reorganization paying everything they can to creditors. The reality is that the test is based on numbers are often not what it truly costs to live. This is not at all surprising, given that the law was written by the credit industry.