Category Archives: Means Test

Use caution when claiming marital deductions on the means test

By doug | Published: July 10, 2023

High income debtors who wish to file a Chapter 7 bankruptcy case to discharge unsecured debts face a serious hurdle in the bankruptcy code’s means test, which gauges their income level, and compares it with a laundry list of average monthly expenses to see is the filer qualifies or not. Married debtors are allowed an […]

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Private pension income needs to be reported twice on bankruptcy schedules

By doug | Published: May 2, 2018

If you are thinking about filing for bankruptcy and you receive a private pension payment each month, instead of or in addition to social security checks, be aware that the pension is treated differently on the bankruptcy forms and in the calculations that determine the course of your case. Simply put, the pension must be […]

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Median income levels for the bankruptcy means test rise again

By admin | Published: October 20, 2017

New data released by the Census Bureau as of April 1, 2018 will result in it being a bit easier to qualify for Chapter 7 bankruptcy in either New Hampshire or Massachusetts. Median income levels are used by the bankruptcy court to determine whether a debtor qualifies for a Chapter 7 case, and also to […]

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Debtors with primarily business debts may still need to provide evidence of income to bankruptcy trustees

By doug | Published: September 19, 2013

Bankruptcy cases often resemble ticker tape parades: lots of paper flying in all directions. Debtors with primarily business debts — that is, more than 50% of their debt total is from a failed or failing business — get a break when they file for Chapter 7 bankruptcy: they can skip the means test, meaning they […]

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September — the best time for teachers to file for bankruptcy

By doug | Published: September 7, 2012

Teaching — a good paying government job with lots of benefits, time off, and job security, right? Why would a teacher need to file for bankruptcy? Sure, and there’s no stress, too! Right . . . The fact is teachers file bankruptcy cases at about the same rate as the general population, for myriad reasons […]

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Should you file for bankruptcy while you are unemployed?

By doug | Published: March 22, 2012

If you have lost your job and are collecting unemployment, is this a good time to file a bankruptcy case to eliminate the debts? A long time ago when I was starting as a lawyer, it was unusual to see unemployed folks filing cases. It costs some money to file, of course, and that money […]

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File Chapter 7 bankruptcy and skip the means test!

By doug | Published: February 10, 2012

There is a simple way to avoid filling out the means test when you are filing a Chapter 7 bankruptcy case. If a debtor has primarily business debts, there is no need to complete the means test! Or, to put it in more precise bankruptcy language, if a debtor has “primarily non-consumer debts,” just check […]

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Chapter 7 bankruptcy eligibility in New Hampshire

By doug | Published: December 7, 2011

Starting with cases filed in May 2012, the Chapter 7 “means test” eligibility figures have changed slightly for residents of New Hampshire considering bankruptcy. The new thresholds for annual family income are: Family size = 1, threshold is now $53,177; Family size = 2, threshold is now $63,626; Family size = 3, threshold is now […]

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Chapter 7 eligibility changes for Massachusetts residents

By doug | Published: November 21, 2011

Starting with cases filed in May 2012, the Chapter 7 “means test” eligibility figures have changed slightly for residents of Massachusetts considering bankruptcy. The new thresholds for annual family income are: Family size = 1, threshold is now $55,185; Family size = 2, threshold is now $66,200; Family size = 3, threshold is now $82,873; […]

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