means test for bankruptcy

• U.S. Bankruptcy Court in N.J. Rules No 'Means Test' for Converted Chapter 7 Bankruptcy

A debtor who files for Chapter 13 bankruptcy, and then converts to Chapter 7 due to a change of circumstances, is not required to file a "means test" calculation of monthly income, a U.S. Bankruptcy Court in New Jersey has ruled. The case involved a debtor earning $57,000 annually who filed for Chapter 13 bankruptcy and was ordered to pay $410 per month for 59 months. Two months later she was laid off and requested that her bankruptcy be converted to a Chapter 7 case. She then received a clerk's notice instructing her to file the statement of current monthly income and means test calculation required for cases filed under Chapter 7.

• Lawyers USA
• July 03, 2007

• Guard, Reserves Spared Bankruptcy 'Means Test'

WASHINGTON - Legislation written by U.S. Rep. Steve Cohen that would let returning National Guard members and Reservists avoid the "means test" when they file for bankruptcy passed the Senate last night. It had passed the House on Tuesday, so it now goes to President Barack Obama for his signature.

• The Commercial Appeal (2007-Current)
• December 05, 2011

• Ransom v. FIA Card Services, N. A., 562 U.S. 2011 (2011)

...Chapter 13 of the Bankruptcy Code uses a statutory formula known asthe "means ttest" to help ensure that debtors who can pay creditors...

• U.S. Supreme Court

• Congresswoman Maxine Waters; the Bankruptcy Bill; a Terrible Bill for Consumers and a Missed Opportunity for Democrats

The bankruptcy bill that the president signed into law on April 20 (S. 256) is tremendously bad policy. This unbalanced bill is a gift to the credit card companies that harms families with children, the elderly and small business by denying many of them the "fresh start" historically offered by our bankruptcy system. The bill imposes a means test that makes filing for a complete discharge in bankruptcy far more difficult for the average person, and it protects far less of a person's assets from creditors than are now protected. I am sure that most of our constituents faced with the misfortune of having to file for bankruptcy would be very surprised and concerned to learn that some Representatives believed that their bankruptcy was simply the constituent's own fault, whatever the circums...

• Sentinel; Los Angeles, Calif.
• August 04, 2009

• New Bankruptcy Law Aids Creditors, Landlords

BY DENNIS T. LEWANDOWSKI While much of the publicity surrounding the new bankruptcy law signed on April 20 by President Bush focuses on consumer bankruptcy changes and the means test for filing a Chapter 7 liquidation bankruptcy, it also contains significant changes that affect other business interests. Consider:

• The Virginian-Pilot and The Ledger-Star, Norfolk, VA
• May 03, 2005

• Means Testing of Chapter 13 Debtors Is Constitutional

The application of regional means testing to Chapter 13 debtors didn't violate the Constitution's requirement for uniformity in bankruptcy laws, the 6th Circuit has ruled in affirming a dismissal. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 amended Chapter 13 to require a bankruptcy court to means test debtors to determine the availability of funds for unsecured creditors. If a debtor's current monthly income is below the median family income of a similarly sized family in the debtor's state of residence, his "disposable income" is determined by more generous exclusions than if he is above the median.

• Lawyers USA
• June 13, 2008

• The Bapcpa, the Gag Rule, and the First Amendment: A Proposal for Alignment Through Interpretive and Analytical Change

In passing section 526(a)(4), Congress sought to accomplish two related objectives.8 First, Congress sought to prevent debt relief agencies from advising clients about how to discharge additional debt, thereby diluting the amount that creditors would otherwise receive in a bankruptcy payout.9 Second, Congress intended to preclude a putative debtor's gaming of the means test.10 The means test was also introduced as part of BAPCPA as a tool by which to determine whether a debtor qualifies for bankruptcy protection under Chapter 7.11 The latter concern reflects the possibility a debtor may worsen the appearance of his or her financial situation by incurring additional debt, thereby increasing the likelihood that protection under Chapter 7 will be available.12 Part I of this Note explores...

• The William and Mary Bill of Rights Journal
• Vol. 18 Nbr. 2, December 2009

• 1st Circuit Rules Debtor Can Deduct Mortgage Payments

A Chapter 7 debtor could deduct mortgage payments due for property he planned to surrender for the purpose of determining whether he satisfied the Bankruptcy Code's new means test, the 1st Circuit has ruled in affirming judgment. The Bankruptcy Abuse Prevention and Consumer Protection Act established a means test by which a Chapter 7 debtor with a monthly disposable income exceeding a certain threshold can have his case dismissed or converted to Chapter 13.

• Lawyers USA
• August 10, 2009

• Consumer credit: the next shoe to drop or a bullet dodged?

..., as well as some information on bankruptcy. . Research shows a strong correlation between sev.... The "means test" in the Act precludes debtors with income abo...

• Journal of Legal, Ethical and Regulatory Issues
• Vol. 13 Nbr. 2, July 2010

• Means Test Means Shift to Chapter 13

(This article originally ran in Wisconsin Law Journal, Milwaukee, WI, another Dolan Media publication.) The means test for Chapter 7 filings is seen as one of the most significant elements of the Bankruptcy Reform Act. Failure will result in a case being converted to Chapter 13 or dismissed.

• Daily Record and the Kansas City Daily News-Press
• August 12, 2005