Category Archives: Bankruptcy and the Means Test

Attorney Seminar: Means Test

Means test Seminar As I take down my website, I thought I would post these older seminar materials as an introduction for attorneys. The numbers have changed and case law interpreting the means test on most issues are extensive so would need to be reviewed on any specific issue. I still believe the information below would be a helpful introduction. Jeffrey Solomon has written and presented seminar materials for continuing education credit to attorneys about the new bankruptcy law. The materials below discuss changes in the bankruptcy law concerning the means test and eligibility to file a 7. CHAPTER 7 or CHAPTER 13 ELIGIBILITY: WHAT IS THE MEANS TEST? A. INTRODUCTION The underlying theory behind BAPCPA is that debtors who could pay their debts, or at least a portion of their debts, were abusing the system by eliminating all of their debts in a Chapter 7. BAPCPA set up a…
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What is the means test?

As I take down my website I thought this information from my website might be of help for general information: The new bankruptcy law creates a “means test”. The theory of the means test is that there is a formula to compare your income to your expenses to determine if you can pay something back to your creditors. If you can make some payments to your creditors, then you cannot file a chapter 7 bankruptcy and you must file a chapter 13 payment plan bankruptcy. The vast majority of individuals will be eligible to file a chapter 7. The new means test does not prevent a Chapter 7 for most people, and the new law is not as bad as it sounds for most debtors. The first step of the means test is to analyze your income. Congress has determined the method. We must look at your income for the…
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Means Test-Median Income Change April 1, 2016

The median income amounts for the means test change on April 1, 2016.  The figures for a Florida means test have a slight increase for household sizes of one and two and a slight decrease for household sizes of three and four. The median income in Florida for a household of 1 is now $ 43,136.00;  for a household of 2 is now $ 53,654.00;  for 3 is now $ 57,080.00; and for 4 is now $ 66,588.00.   The median income increases for each additional member of the household  $8400.00.00.

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