Bankruptcy filing eligibility

[jfbelk]

What is the name of your state? TX

I am considering taking a bankruptcy chapter 7, but I understand there are income limits. If you are over the income limit, then you must pass a mean "means test". Does anyone know if the income considered is net or gross? Also, are the census bureau's median income, and expenses adjusted for inflation? Does anyone know what type of credit counseling you have to engage in before filing? I know these are a lot of questions, but I am overwhelmed by all the hoops you are required to jump through.

 

[Ladynred]

If your median income is above the limit for your state and area in your state, then you will not be allowed to file Ch 7 but will be stuck with a 5 year Ch 13. The numbers used for the means test have been adjusted once so far that I know of, but I don't believe the IRS tables for allowed expenses have changed at all recently.

Info on the means test is here: http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm
Median income by state: http://www.usdoj.gov/ust/eo/bapcpa/bci_data/median_income_table.htm

The income considered is your GROSS over the 6 months prior to your filing. You will be required to include the last 3 years of tax returns to show your income.

The required credit counseling is a 90-mintue session by an APPROVED counseling place. You can't just got to anyone you choose: http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm

You must have this counseling completed within the 180 days prior to filing and you cannot go for counseling on Thursday or Friday morning and file Friday afternoon. There is already case law for cases being dismissed for exactly those reason.

And, before you get your discharge you must go for a 2-hour money management course, all of which you pay for out of your own pocket.