Bankruptcy Means Test Calculator for Bridgeport, Connecticut 06606

Click for Bridgeport, Connecticut Forecast

Connecticut Bankruptcy InformationBankruptcy Means Test Calculator
for Bridgeport, Connecticut (Fairfield County)

public beta* - version 20140401

CloseMeans Test Calculator

Version 20140401 (April 1, 2014)

This is a public beta. "Public beta" means that, to my knowledge, this calculator is working correctly. When I am made aware of errors I fix them. As of this version, there are no errors I know of.

That said, I've developed enough software over the years to know that there are always cases that turn up that were not encountered in testing. Also, this revision features several under the hood rewrites to make the code more efficient and easier to maintain.

So, as always, please, if you encounter an error, let me know (click here) and I will investigate, and fix it. Thanks! Other users will thank you.

Use the calculator as you see fit. You can click the links to original sources to confirm that they are correct and up to date. You can also check its math. As far as I know, it's correct. Chances are, this will always be a beta because it is being constantly updated, tweaked, enhanced, etc.

I hope you find it useful as you decide how to deal with your financial affairs.

Albin J. Renauer, creator and developer of the Means Test Calculator ©2005-2014
RelationalVision, LLC / Berkeley, CA
www.legalconsumer.com

For Cases Filed on or after May 1, 2014.

Based on numbers published by the U.S. Trustee's office for Cases Filed on or after May 1, 2014.) You are user # 0 of the Means Test Calculator.

Are You Eligible for Chapter 7?

Despite what you may have heard about recent changes in bankruptcy law, most people who need bankruptcy protection are still eligible.

Are you?

This calculator will help you find out.

It applies the formulas, regional income and expense standards, and calculations of the new "means test" that was a cornerstone of BAPCPA, the bankruptcy law (11 U.S.C. 707(b)). It uses the language and formatting of Official Form 22A -- one of several forms you would need to complete if you decide to file for bankruptcy.

Read the instructions carefully. If you are unsure whether an item applies to your situation, make a note of your question. Ask a bankruptcy lawyer about it if you go for a free consultation.

Connecticut "Median Income" Test

If your monthly household income is less than the Connecticut median income for a household of your size, you are presumed to be eligible to file for Chapter 7 bankruptcy under Section 707(b)(2).


Connecticut Bankruptcy Information

State Median Income Test for Connecticut

Compare your household income to the Connecticut median income.

For Cases Filed on or after May 1, 2014.

 

If LESS <

Median Income

> If MORE

You Pass!

Chapter 7 is an option.

Not legally required to complete means test form, but may want to anyway.*

1 person
family

Avg. Monthly Income
(past 6 months)
$5,107
per month

6-Month Total:
$30,644

12 month annualized
$61,288


(as appears on
US govt website tables
for 11/15/2013 and 04/01/2014 )

Keep Going!

Must complete means test to determine if Chapter 7 is available.

Sources:
U.S. Trustee Program, Department of Justice,
11 U.S.C. Sec. 707(b)(7) exclusion.
Official Form 22A, Line 15

Select the number of people in your household.

(*The applicable household size consists of the number that would currently be allowed as exemptions on your federal income tax return, plus the number of any additional dependents whom you support.)

Compare your household income over the past six calendar months to the state median. (See "Part 2," below.)

Explanation

The bankruptcy law determines your income by looking at your household income during the six full calendar months before your bankruptcy filing.

Ramifications of the 6-month income rule

If your income declined suddenly within the past six months and has not yet increased, waiting until after the first of the month to file will lower your monthly income figure used for the means test. That is, even if you don't qualify this month, you may qualify after the first of next month, or the month after that, if your income remains below the average monthly income for your state.

Ramifications of the number of people in your household

You may have noticed already that changing the number of persons in the household dramatically affects the median income figure. You can't include a roommate who is not your dependent in your household size, yet you may have to include the portion of their income that contributes to the overall income of the household. See the help topic on that subject.

If your six-month household income was more than $30,644, don't fret and keep scrolling.

You probably still qualify for Chapter 7, but you'll need to answer more questions to find out. Most people qualify once all factors are taken into account.

Info is not advice

This site will point you to numerous books, articles and services that can help you figure out whether it makes sense for you to file for bankruptcy.

However, this website cannot answer whether you, specifically, should or should not file for bankruptcy.

If you're still not sure whether bankruptcy is right for you, you may want to seek credit counseling from a reputable agency or consult a lawyer.

 

* If your six-month household income was less than $30,644, consider this:

Complete Parts 1 and 2 of the calculator to make sure that you've properly computed your income. Although you are not legally required to complete the "expenses" part of the means test form, you may want to anyway to get a sense of how a judge or trustee might view your ability to pay.

Some judges look to your ability to pay as part of the "totality of the circumstances" test (Section 707(b)(3)), and will bar you from Chapter 7 Bankruptcy, regardless of whether your income is above or below the median.

Bottom line: Whatever your income, if the calculator indicates that you have money left over after expenses, study the list of allowed expenses in the means test form and fill in any that apply.

Another thing to worry about: Some judges may rely on different required forms as guides in looking at the "totality of the circumstances" under 707(b)(3): Specifically Form 6, Schedules I and J. These forms also deal with income and expenses but can yield a different "disposable income" result than the means test form (Form 22A) because different things are allowed and excluded on each form. Most notably, the means test income formula (and this calculator) excludes income from social security benefits, while Schedule I does not. Whether your social security income can render you ineligible for Chapter 7 is an unsettled area of law. At least one court has ruled that, by enacting the means test as it did, Congress intended that social security income be excluded when determining chapter 7 eligibility, however, it still must be reported on Schedule I.

If you have significant income from social security benefits, be aware of this issue.

The Means Test Calculator

This calculator is based on Official Form 22A -- a form you must complete if you file for Chapter 7 bankruptcy. The calculator applies the official formula stated in federal law (11 U.S.C. 707(b)), and local expense standards published by the U.S. government, to give you a sense of whether you qualify for bankruptcy.

Some of the questions on the form may be difficult to interpret. The government has not published instructions for this form, but the committee report from Congress explains the purpose of each part of the form. You can view relevant excerpts from that report wherever you see a green question mark icon. This material is not written as an instruction manual, but it will help you understand the why the form is asking certain questions.

You & Your Living Situation

The bankruptcy means test is based on income and living expense averages that vary from state to state and county to county, and other factors, such as if you're Married (Part 2, Line 2) and how many vehicles on which you are making loan or lease payments and/or paying operational costs & upkeep (in Part 5, lines 22 & 23). The information you supply determines which income and expense deduction standards to apply. We ask these questions now so they don't get lost in the shuffle.

Info we know already

Location (ZIP)

Connecticut Bankruptcy InformationZIP: 06606
CITY: Bridgeport, CT
COUNTY: Fairfield County
METRO AREA
New York (for transportation allowance )

Your Household

individuals in your household,
including yourself.

 

Part 1: Military and Non-Consumer Debtors

 

FAST TRACK: If you are not military and know your debts are consumer debts (e.g. credit cards, medical debts, auto loans, mortgage, rent) you can skip this section (click here).

 

 

 For Congressional Committee notes about this portion of the form, click here.

Congressional Committee Notes

New Notes added Nov, 2008

The chapter 7 form is amended to implement the temporary exclusion from means testing created by the National Guard and Reservists Debt Relief Act of 2008. That law amended § 707(b)(2)(D) for a period of three years by adding a new subsection (ii) to provide a temporary exclusion from the application of the means test for certain members of the National Guard and reserve components of the Armed Forces. The new temporary exclusion would last for the period that the qualifying debtor is on active duty or is performing a homeland defense activity, and for 540 days thereafter.

Because the exclusion for Reservists and National Guard members applies only for a defined period of time, it may expire during the course of the chapter 7 case filed by a debtor initially entitled to the exclusion. For that reason, a new check box is added to the top of the form that states that the “presumption is temporarily inapplicable.” A debtor who is entitled to claim the Reservists and National Guard exclusion at the commencement of the chapter 7 case may check that box.

The new exclusion applies only to a debtor who satisfies all of the requirements of § 707(b)(2)(D)(ii), and its expiration date depends on facts specific to each debtor. Therefore, in a joint case in which the exclusion in part 1C is claimed by either or both filers, each joint filer must complete a separate statement. If only one joint debtor qualifies for the exclusion in part IC, the other joint debtor must complete the form.

Part 1C is added to the form to allow qualifying debtors to claim the temporary exclusion under § 707(b)(2)(D)(ii). Debtors who declare under penalty of perjury that they satisfy all of the requirements of that provision are directed to verify their declaration in Part VIII and to check the “temporary presumption” box at the beginning of the form. They are not required to complete the remaining parts of the form for so long as the exclusion remains applicable.

A debtor who is or has been a Reservist or a National Guard member may qualify for the exclusion described in part 1C by being called to active duty service after September 11, 2001, for a period of at least 90 days, or while performing homeland defense activity for a period of at least 90 days. After the debtor has been released from active duty or has ceased performing homeland defense activity, the exclusion applies for a period of 540 days after the release date or cessation of homeland defense activity. Under those circumstances the debtor must state the date of release from active duty or the date on which the performance of homeland defense activity terminated.

If the Reservist and National Guard exclusion terminates during the course of a chapter 7 case – because of the expiration of the 540 day period following the release from active duty or the cessation of homeland defense activity – then the debtor may be required to complete the remaining parts of the form that are applicable to the debtor. If the exclusion terminates while a timely motion to dismiss under § 707(b)(2) may still be filed, Interim Rule 1007-I(n) requires that the debtor complete the remaining parts of the form no later than 14 days after the termination. If the obligation to complete the form arises in these circumstances and the debtor has not previously completed the form, the clerk is required to give the debtor notice of the obligation.

 

2005-2008 Committee Note

(incorporates Committee Notes previously published in 2005 and 2006)

[excerpt]
for a full copy of the committee report as a pdf file, click here.

D. The chapter-specific forms

1. Chapter 7

The Chapter 7 form has several unique aspects. The form includes, in the upper right corner of the first page, a check box directing the debtor to state whether or not the calculations required by the form result in a presumption of abuse. The debtor is not bound by this statement and may argue, in response to a motion brought under § 707(b)(1), that there should be no presumption despite the calculations required by the form. The check box is intended to give clerks of court a conspicuous indication of the cases for which they are required to provide notice of a presumption of abuse pursuant to § 342(d).

Part I implements the provision of § 707(b)(2)(D) that excludes certain disabled veterans from all means testing, making it unnecessary to compute the CMI of such veterans. Debtors who declare under penalty of perjury that they are disabled veterans within the statutory definition are directed to verify their declaration in Part VII, to check the “no presumption” box at the beginning of the form, and to disregard the remaining parts of the form.

Part I also provides an exclusion for debtors who do not have primarily consumer debts. These debtors are not subject to any of the provisions of § 707(b)—including the requirement of Forms 22A, 22B, & 22C Page 15§ 707(b)(2)(C) for filing a CMI statement— since § 707(b) applies, by its terms, only to “an individual debtor . . . whose debts are primarily consumer debts.”

However, a debtor may be found to have asserted non-consumer status incorrectly. Unless such a debtor has filed the CMI form within the 45 days after filing the case, the case could be subject to automatic dismissal under § 521(i). To avoid this possibility, debtors asserting principally non-consumer status may complete the appropriate portions of Part I, claim an exclusion from the balance of the form, and promptly file the form. If it is subsequently determined that the debtor does have primarily consumer debts, the form will have been filed within the deadline established by § 521(i), and can be amended to include the necessary CMI and means test information.

Part II computes CMI for purposes of the safe harbor of § 707(b)(7). Section 707(b)(7) prohibits a motion to dismiss based on the means test’s presumption of abuse if the debtor’s annualized CMI does not exceed a defined median state income. For this purpose, the statute directs that CMI of the debtor’s spouse be combined with the debtor’s CMI even if the debtor’s spouse is not a joint debtor, unless the debtor declares under penalty of perjury that the spouses are legally separated or living separately other than for purposes of evading the means test.

Accordingly, the calculation of CMI in Part II directs a computation of the CMI of the debtor’s spouse not only in joint cases, but also in cases of married debtors who do not make the specified declaration, and the CMI of both spouses in these cases is combined for purposes of determining standing under § 707(b)(7).

Line

Part I: Military and Non Consumer Debtors

1A

Are You a Disabled Veteran?

IF you are:

  • a veteran,

AND

The term "disabled veteran" means (A) a veteran who is entitled to compensation under laws administered by the Secretary for a disability rated at 30 percent or more, or (B) a veteran whose discharge or release from active duty was for a disability incurred or aggravated in line of duty.

AND

The term "active duty" means full-time duty in the active military service of the United States. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. Such term does not include full-time National Guard duty.

Title 32. National Guard / Chapter 9. Homeland Defense Activities / § 901. Definitions:

In this chapter: (1) The term "homeland defense activity" means an activity undertaken for the military protection of the territory or domestic population of the United States, or of infrastructure or other assets of the United States determined by the Secretary of Defense as being critical to national security, from a threat or aggression against the United States.

THEN you are exempt from the means test.

Check this box if you meet these qualifications.

1B

Non-consumer Debtors.

If your debts are not primarily consumer debt.

THEN you are exempt from the means test.

1C

NEW: Temporary exclusion from means test, passed by Congress October, 2008, effective December 2008.

Reservists and National Guard Members on active duty or homeland defense activity

Exemption from means testing requirement:

- during service

and

- for up to 540 days* after release.

(*must have been released May 01, 2013 or later if you file on Oct 23, 2014.)

IF you are:

1. a member of a reserve component of the Armed Forces and members of the National Guard

AND

you were called to active duty (as defined in 10 U.S.C.§ 101(d)(1)) after September 11, 2001, for a period of at least 90 days,

The term "active duty" means full-time duty in the active military service of the United States. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. Such term does not include full-time National Guard duty.

OR

2. you have performed homeland defense activity (as defined in 32 U.S.C. § 901(1)) for a period of at least 90 days,

Title 32. National Guard / Chapter 9. Homeland Defense Activities / § 901. Definitions:

In this chapter: (1) The term "homeland defense activity" means an activity undertaken for the military protection of the territory or domestic population of the United States, or of infrastructure or other assets of the United States determined by the Secretary of Defense as being critical to national security, from a threat or aggression against the United States.

THEN: you are excluded from all forms of means testing:

* during the time of active duty or homeland defense activity

and

* for 540 days thereafter (the “exclusion period”).
(if filing Oct 23, 2014, you would have to had been released from active duty after May 01, 2013)

If you qualify for this temporary exclusion, (1) check the appropriate boxes and complete any required information in the Declaration of Reservists and National Guard Members below, (2) check the box for “The presumption is temporarily inapplicable” at the top of this statement, and (3) complete the verification in Part VIII. During your exclusion period you are not required to complete the balance of this form, but you must complete the form no later than 14 days after the date on which your exclusion period ends, unless the time for filing a motion raising the means test presumption expires in your case before your exclusion period ends.

Declaration of Reservists and National Guard Members. By checking this box and making the appropriate entries below, I declare that I am eligible for a temporary exclusion from means testing because, as a member of a reserve component of the Armed Forces or the National Guard

a.
I was called to active duty after September 11, 2001, for a period of at least 90 days and

I remain on active duty /or/
I was released from active duty on , which is less than 540 days before this bankruptcy case was filed;
(if filing Oct 23, 2014, 540 days before is May 01, 2013)

OR

b.
I am performing homeland defense activity for a period of at least 90 days
OR
I performed homeland defense activity for a period of at least 90 days, terminating on , which is less than 540 days before this bankruptcy case was filed.
(if filing Oct 23, 2014, 540 days before is May 01, 2013)

Part 2: Calculation of Income (6-mo avg.) for Median Income Test

Current Monthly Income (CMI) is the monthly average of certain income that you (and in a joint case, your spouse) received in the six calendar months before your bankruptcy filing.

CMI includes:
(1) income from all sources, whether or not taxable, and
(2) any amount paid by an entity or person other than you (or your spouse in a joint case) on a regular basis for your household expenses, your dependents, and (in a joint case) your spouse if not otherwise a dependent.

At the same time, the definition excludes from the averaged income "benefits received under the Social Security Act" and certain payments to victims of terrorism, war crimes, and crimes against humanity.

 For Congressional Committee notes about this portion of the form, click here.

Congressional Committee Notes

2005-2008 COMMITTEE NOTE

(incorporates Committee Notes previously published in 2005 and 2006)

[excerpt]
for a full copy of the committee report as a pdf file, click here.

A. Overview

Among the changes introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was a set of interlocking provisions defining “current monthly income” and establishing a means test to determine whether relief under Chapter 7 should be presumed abusive. Current monthly income (“CMI”) is defined in § 101(10A) of the Code, and the means test is set out in § 707(b)(2). These provisions have a variety of applications. In Chapter 7, if the debtor’s CMI exceeds a defined level the debtor is subject to the means test, and§ 707(b)(2)(C) specifically requires debtors to file a statement of CMI and calculations to determine the applicability of the means test presumption. In Chapters 11 and 13, CMI provides the starting point for determining the disposable income that debtors may be required to pay to unsecured creditors. Moreover, Chapter 13 debtors with CMI above defined median income levels are required by § 1325(b)(3) to use the deductions from income prescribed by the means test in order to determine what part of their income is “disposable,” and pursuant to § 1325(b)(4), the level of CMI determines the “applicable commitment period” over which projected disposable income must be paid to unsecured creditors.

To provide for the reporting and calculation of CMI and for the completion of the means test where required, three separate official forms have been created—one for Chapter 7, one for Chapter 11, and one for Chapter 13. This note first describes the calculation of CMI that is common to all three of the forms, next describes the means test deductions set out in the Chapter 7 and 13 forms, and finally addresses particular issues that are unique to each of the separate forms.

B. Calculation of CMI

Although Chapters 7, 11, and 13 use CMI for different purposes, the basic computation is the same in each. As defined in § 101(10A), CMI is the monthly average of certain income that the debtor (and in a joint case, the debtor’s spouse) received in the six calendar months before the bankruptcy filing. The definition includes in this average (1) income from all sources, whether or not taxable, and (2) any amount paid by an entity other than the debtor (or the debtor’s spouse in a joint case) on a regular basis for the household expenses of the debtor, the debtor’s dependents, and (in a joint case) the debtor’s spouse if not otherwise a dependent. At the same time, the definition excludes from the averaged income “benefits received under the Social Security Act” and certain payments to victims of terrorism, war crimes, and crimes against humanity.

Each of the three forms provides for reporting income items constituting CMI. The items are reported in a set of entry lines—Part II of the form for Chapter 7 and Part I of the forms for Chapter 11 and Chapter 13—that include separate columns for reporting income of the debtor and of the debtor’s spouse. The first of these entry lines includes a set of instructions and check boxes indicating when the “debtor’s spouse” column must be completed. The instructions also direct the required averaging of reported income.

The subsequent entry lines for income reporting specify several common types of income and are followed by a “catch-all” line for other income. The entry lines address (a) gross wages; (b) business income; (c) rental income; (d) interest, dividends, and royalties; (e) pension and retirement income; (f) regular payments of the household expenses of the debtor or the debtor’s dependents; (g) unemployment compensation, and (h) all other forms of income (the “catch-all” line).

Gross wages (before taxes) are required to be entered. However, consistent with usage in the Internal Revenue Manual and the American Community Survey of the Census Bureau, business and rental income are defined as gross receipts less ordinary and necessary expenses. Unemployment compensation is given special treatment. Because the federal government provides funding for state unemployment compensation under the Social Security Act, there may be a dispute about whether unemployment compensation is a “benefit received under the Social Security Act.” The forms take no position on the merits of this argument, but Forms 22A, 22B, & 22C Page 10 give debtors the option of reporting unemployment compensation separately from the CMI calculation. This separate reporting allows parties in interest to determine the materiality of an exclusion of unemployment compensation and to challenge it.

Alimony and child support are also given special treatment. Child support is not generally considered “income” to the recipient. See 26 U.S.C. § 71(c). Thus, child support is only part of CMI if it is paid on a regular basis for the household expenses of the debtor or the debtor’s dependents. On the other hand, alimony and other forms of spousal support are considered income to the recipient, and thus are within CMI regardless of the regularity and use of the payments. To address this distinction, the instruction in the entry line for regular payments of household expenses directs that the entry include regular child support payments used for household expenses of the debtor or the debtor’s dependents, and the instruction for the “catch-all” line directs inclusion of all spousal support payments that are not otherwise reported as spousal income.

The forms provide for totaling the income reporting lines.

Although Chapters 7, 11, and 13 use CMI for different purposes, the basic computation is the same in each. As defined in § 101(10A), CMI is the monthly average of certain income that the debtor (and in a joint case, the debtor's spouse) received in the six calendar months before the bankruptcy filing. The definition includes in this average (1) income from all sources, whether or not taxable, and (2) any amount paid by an entity other than the debtor (or the debtor's spouse in a joint case) on a regular basis for the household expenses of the debtor, the debtor's dependents, and (in a joint case) the debtor's spouse if not otherwise a dependent. At the same time, the definition excludes from the averaged income "benefits received under the Social Security Act" and certain payments to victims of terrorism, war crimes, and crimes against humanity.

Each of the forms provides for reporting income items constituting CMI. The items are reported in a set of entry lines—Part II of the Chapter 7 form and Part I of the forms for Chapter 11 and Chapter 13—that include separate columns for reporting income of the debtor and of the debtor's spouse. The first of these entry lines includes a set of instructions and check boxes indicating when the "debtor's spouse" column must be completed. The instructions also direct the required averaging of reported income.

The subsequent entry lines specify several common types of income and are followed by a "catch-all" line for other income. The specific entry lines address (a) gross wages; (b) business income; (c) rental income; (d) interest, dividends, and royalties; (e) pension and retirement income; (f) regular contributions to the debtor's household expenses; and (g) unemployment compensation. Gross wages (before taxes) are required to be entered. Consistent with usage in the Internal Revenue Manual and the American Community Survey of the Census Bureau, business and rental income is defined as gross receipts less ordinary and necessary expenses. Unemployment compensation is given special treatment. Because the federal government provides funding for state unemployment compensation under the Social Security Act, there may be a dispute about whether unemployment compensation is a "benefit received under the Social Security Act." The forms take no position on the merits of this argument, but give debtors the option of reporting unemployment compensation separately from the CMI calculation. This separate reporting allows parties in interest to determine the materiality of an exclusion of unemployment compensation and to challenge it. The forms provide for totaling the income lines.

...

D. The chapter-specific forms

1. Chapter 7

...

Part II computes CMI for purposes of the safe harbor of § 707(b)(7). Section 707(b)(7) prohibits a motion to dismiss based on the means test’s presumption of abuse if the debtor’s annualized CMI does not exceed a defined median state income. For this purpose, the statute directs that CMI of the debtor’s spouse be combined with the debtor’s CMI even if the debtor’s spouse is not a joint debtor, unless the debtor declares under penalty of perjury that the spouses are legally separated or living separately other than for purposes of evading the means test.

Accordingly, the calculation of CMI in Part II directs a computation of the CMI of the debtor’s spouse not only in joint cases, but also in cases of married debtors who do not make the specified declaration, and the CMI of both spouses in these cases is combined for purposes of determining standing under § 707(b)(7).

2

Marital/Filing Status

Select the status that applies and complete the rest of this part of this statement as directed.

Note: If you choose "married - not filing jointly - separate household" you must be willing to declare, under penalty of perjury: "My spouse and I are legally separated under applicable non-bankruptcy law or my spouse and I are living apart other than for the purpose of evading the requirements of S 707(b)(2)(A) of the Bankruptcy Code."

You have not entered your marital status  

All figures must reflect average monthly income for the six calendar months prior to filing the bankruptcy case, ending on the last day of the month before the filing. If you received different amounts of income during these six months, you must total the amounts received during the six months, divide this total by six, and enter the result on the appropriate line.

Column A
Your Average
Income Per Month

Column B
Spouse's Average Income Per Month

3 Gross wages (before taxes), salary, tips, bonuses, overtime, commissions. Invalid format. Invalid format.
4
Income from the operation of a business, profession or farm. Subtract Line b from Line a and enter the difference in the appropriate column(s) of Line 4. If you operate more than one business, profession or farm, enter aggregate numbers and provide details on an attachment. Do not enter a number less than zero. Do not include any part of the business expenses entered on Line b as a deduction in Part V
    You Spouse

a.

Gross receipts Invalid format. Invalid format.

b.

Ordinary and necessary business expenses Invalid format. Invalid format.

c.

Business Income (line a minus line b, but not less than 0)
$0 $0
5 Rent and other real property income. Do not include any part of the operating expenses entered on Line b as a deduction in Part V.
    You Spouse

a.

Gross receipts Invalid format. A value is required.Invalid format.

b.

Ordinary and necessary business expenses A value is required.Invalid format.

A value is required.Invalid format.

c.

Rental income (line a minus line b, but not less than 0)
$0 $0
6 Interest, dividends, and royalties. A value is required.Invalid format. A value is required.Invalid format.
7 Pension and retirement income. A value is required.Invalid format. A value is required.Invalid format.
8 Any amounts paid by another person or entity, on a regular basis, for the household expenses of the debtor or the debtor's dependents, including child support paid for that purpose. Do not include alimony or separate maintenance payments or amounts paid by your spouse if Column B is completed. Each regular payment should be reported in only one column; if a payment is listed in Column A, do not report that payment in Column B.

Note: If you are sharing a household with one or more roommates or a domestic partner, you must include here all amounts that other members of the household regularly contribute to rent, house payments, or other household expenses.
A value is required.Invalid format. A value is required.Invalid format.
9 Unemployment compensation. Enter the amount in the appropriate column(s) of Line 9. However, if you contend that unemployment compensation received by you or your spouse was a benefit under the Social Security Act, do not list the amount of such compensation in Column A or B, but instead state the amount in the space below:
Unemployment compensation claimed to
be a benefit under the Social Security Act

Debtor:

A value is required.Invalid format.

Spouse:

A value is required.Invalid format.

What's this? (From Congressional Committee Report): "Unemployment compensation is given special treatment. Because the federal government provides funding for state unemployment compensation under the Social Security Act, there may be a dispute about whether unemployment compensation is a "benefit received under the Social Security Act." The forms take no position on the merits of this argument, but give debtors the option of reporting unemployment compensation separately from the CMI calculation. This separate reporting allows parties in interest to determine the materiality of an exclusion of unemployment compensation and to challenge it. " In plain English this means, report it separately. It may not affect the result of the test. If it does, it will be a "material" issue that the debtor may want to assert.)
A value is required.Invalid format. A value is required.Invalid format.
10 Income from all other sources. Specify source and amount. If necessary, list additional sources on a separate page. Do not include alimony or separate maintenance payments paid by your spouse if Column B is completed, but include all other payments of alimony or separate maintenance. Do not include any benefits received under the Social Security Act or payments received as a victim of a war crime, crime against humanity, or as a victim of international or domestic terrorism.
  explanation   You Spouse
a   A value is required.Invalid format. A value is required.Invalid format.
b.   A value is required.Invalid format. A value is required.Invalid format.

$0 $0
11 Subtotal of Current Monthly Income for § 707(b)(7) ("Median Income Test") . Add Lines 3 thru 10 in Column A, and, if Column B is completed, add Lines 3 through 10 in Column B. Enter the total(s).

$0

$0

12 Total Current Monthly Income for § 707(b)(7) ("Median Income Test"). If Column B has been completed, add Line 11, Column A to Line 11, Column B, and enter the total. If Column B has not beencompleted, enter the amount from Line 11, Column A
You have not entered your marital status

$0

Part 3. Application of Median Income Test

From the Congressional Committee Report:

Part 3 of the form provides for the comparison of the debtor's CMI to the applicable state median income for purposes of § 707(b)(7). It then directs debtors whose income does not exceed the applicable median to verify the form, to check the "no presumption" box at the Forms 22A, 22B, & 22C Page 6 beginning of the form, and not to complete the remaining parts of the form. Debtors whose CMI does exceed the applicable state median are required to complete the remaining parts of the form.

13

Annualized Current Monthly Income for § 707(b)(7)

Line 12 amount (monthly income) multiplied by the number 12

$0

14 Connecticut Bankruptcy Information

Applicable Median Family Income

 

 

State of residence: Connecticut    
Household size:
source: U.S. Trustee, standards for cases filed on or after May 1, 2014.

$61,288

15
Income for Your Household of
$0
CT Median Income for Household of
$61,288

Application of Section 707(b)(7) "Median Income Test"

Because your household income does not exceed the median income for a household of similar size for your state, the presumption of abuse in your case does not arise; do not complete parts 4, 5, 6 or 7 of this form.

(Editor's note: Although the official form says "do not complete [the rest of the form]," you can go ahead and do so if you want to get a sense of how the means test formula computes your monthly "disposable" income. Even if you pass the median income test, some judges may deny you the right to file for Chapter 7 bankruptcy if it looks like you can afford to make significant monthly payments into a three-year Chapter 13 plan.)

Part 4: Calculation of Current Monthly Income for Means Test

This section makes an adjustment between the income figure used for the median income test versus the figure used for the means test. The means test has slightly different rules regarding income of married couples who are living together if only one spouse is filing for bankruptcy.

From the Congressional Committee Report:

Part 4 the form provides for an adjustment to the CMI of a married debtor, not filing jointly, whose spouse's CMI was combined with the debtor's for purposes of determining standing to assert the means test presumption.

The means test itself does not charge a married debtor in a non-joint case with the income of the non-filing spouse, but rather only with contributions made by that spouse to the household expenses of the debtor or the debtor's dependents, as provided in the definition of CMI in § 101(10A). Accordingly, Part IV calls for the combined CMI of Part II to be reduced by the amount of the non-filing spouse's income that was not contributed to the household expenses of the debtor or the debtor's dependents.

Because of the marital and filing status you selected in Part 2 (), you may skip this section.

 

Adjustment to income if you are married and living together, but filing singly.

16

Line12_amount (combined monthly income): $0

17

If you are married, living together, but filing singly:

Enter the portion of the income in Column B that was NOT paid on a regular basis for the household expenses of you or
your dependents:
Specify on a separate page the basis for excluding the Column B income (such as payment of the spouse's tax liability or the spouse's support of persons other than the debtor or the debtor's dependents) and the amount of income devoted to each purpose.

Total and enter on Line 17.

A value is required.Invalid format.

18

Current Monthly Income for 707(b)(2) 'means test'

Subtract line 17 from line 16

You have not entered your marital status

$0

Part 5. Calculation of Expense Deductions Allowed Under Means Test

This section deals with allowable deductions from income to determine how much of your income is "disposable" and therefore could be used to pay your debts. Many deductions are allowed, including your monthly car loan and mortgage payments (line42), in addition to "standard" deductions based on where you live and other factors.

What is the 'target number' you have to meet?

Unlike the first part of the test, the state median income is not relevant. What matters in this test is how much money you have left at the end of every month that could go towards paying off "unsecured" debts.
The test in this part is:
Can you afford, after expenses, to pay off at least $7,025 over the next 5 years ($117 per month over 60 months)?
If you can, the law will require you to file for Chapter 13 instead of Chapter 7.

Subpart 5A: Deductions under Standards of the Internal Revenue Service (IRS)

Over many years of collecting unpaid taxes, the IRS has established standards to tell its collection agents when to quit trying to extract money from delinquent taxpayers. These standards are rather elaborate, and take into account regional differences in housing and transportation costs.

When Congress wrote the bankruptcy means test, it decided to use the IRS standards as a starting point. As you will see in part 5B and 5C of the form, the bankruptcy means test also allows you to deduct several categories of extra expenses in addition to the "standard" deductions allowed by the IRS.

 To view Congressional Committee Notes about this part of the form, click here.

[x] [Close]

Congressional Committee Notes 2005-2008

(incorporates Committee Notes previously published in 2005 and 2006)

[excerpt]
for a full copy of the committee report as a pdf file, click here.

C. The means test: deductions from current monthly income

The means test operates by deducting from CMI defined allowances for living expenses and payment of secured and priority debt, leaving disposable income presumptively available to pay unsecured non-priority debt. These deductions from CMI are set out in the Code at § 707(b)(2)(A)(ii)-(iv). The forms for Chapter 7 and Chapter 13 have similar sections (Parts V and IV, respectively) for calculating these deductions. The calculations are divided into subparts reflecting three different kinds of allowed deductions.

1. Deductions under IRS standards1. Deductions under IRS standards

Subpart A deals with deductions from CMI, set out in § 707(b)(2)(A)(ii), for “the debtor’s applicable monthly expense amounts specified under the National tandards and Local Standards, and the debtor’s actual monthly expenses for the categories specified as Other Necessary Expenses issued by the Internal Revenue Service for the area in which the debtor resides.” The forms provide entry lines for each of the specified expense deductions under the IRS standards, and instructions on the entry lines identify the website of the U.S. Trustee Program, where the relevant IRS allowances can be found. As with all of the deductions in § 707(b)(2)(A)(ii), deductions under the IRS standards are subject to the proviso that they not include “any payments for debts.”

National Standards. The IRS National Standards provide a single allowance for food, clothing, household supplies, personal care, and miscellany, depending on household size, which can be entered directly from a table supplied by the IRS. There is also a National Standard for out-of-pocket health care expenses, which provides two different per-person allowances, depending on age group: the allowance for persons 65 or older is greater than the allowance for those under 65. Accordingly, the forms direct debtors to compute the National Standard allowance for health care by first multiplying each of the two age-group allowances by the number of household members within that age group and then adding subtotals for the two age groups to obtain the total allowance.

Local Standards. The IRS Local Standards provide one set of deductions for housing and utilities and another set for transportation expenses, with different amounts for different areas of the country, depending on the size of the debtor’s household and the number of the debtor’s vehicles. Each of the amounts specified in the Local Standards are treated by the IRS as a cap on actual expenses, but because § 707(b)(2)(A)(ii) provides for deductions in the “amounts specified under the . . . Local Standards,” the forms treat these amounts as allowed deductions.

The Local Standards for housing and utilities, as published by the IRS for its internal purposes, present single amounts covering all housing expenses; however, for bankruptcy purposes, the IRS has provided the Executive Office for United States Trustees with information allowing a division of these amounts into a non-mortgage component and a mortgage/rent component. The non-mortgage component covers a variety of expenses involved in maintaining a residence, such as utilities, repairs and maintenance. The mortgage/rent component covers the cost of acquiring the residence. The forms take no position on the question of whether the debtor must actually be making payments on a home in order to claim a mortgage/rent allowance. For homeowners with mortgages, the mortgage/rent allowance involves debt payment, since the cost of a mortgage is the basis for the allowance. Accordingly, the forms require debtors to deduct from the mortgage/rent allowance their average monthly mortgage payment, up to the full amount of the IRS mortgage/rent allowance, and instruct debtors that this average monthly payment is the one reported on the separate line of the forms for deductions of secured debt under § 707(b)(2)(a)(iii). The forms allow debtors to challenge the appropriateness of this method of computing the Local Standards allowance for housing and utilities and to claim any additional housing allowance to which they contend they are entitled, but the forms require specification of the basis for such a contention.

The IRS issues Local Standards for transportation in two components for its internal purposes as well as for bankruptcy: one component covers vehicle operation/public transportation expense and the other ownership/lease expense. The amount of the vehicle operation/public transportation allowance depends on the number of vehicles the debtor operates; debtors who do not operate vehicles are given a public transportation allowance, regardless of whether they actually use public transportation. It is not clear whether the public transportation allowance may also be claimed by debtors who do make use of public transportation but also operate vehicles. The forms permit debtors to claim both a public transportation and vehicle operating allowance, but take no position as to whether it is appropriate to claim both allowances. No debt payment is involved in the vehicle operation/public transportation component of the Local Standards for transportation.

The ownership/lease component, on the other hand, may involve debt payment. Accordingly, the forms require debtors to reduce the allowance for ownership/lease expense by the average monthly loan payment amount (principal and interest), up to the full amount of the IRS ownership/lease expense amount. This average payment is as reported on the separate line of the forms for deductions of secured debt under § 707(b)(2)(a)(iii). The forms take no position on the question of whether the debtor must actually be making payments on a vehicle in order to claim the ownership/lease allowance. Other Necessary Expenses. The IRS does not set out specific dollar allowances for “Other Necessary Expenses.” Rather, it specifies a number of categories for such expenses, and describes the nature of the expenses that may be deducted in each of these categories. Section 707(b)(2)(a)(ii) allows a deduction for the debtor’s actual expenses in these specified categories, subject to its requirement that payment of debt not be included. Several of the IRS categories deal with debt repayment and so are not included in the forms. Several other categories deal with expense items that are more expansively addressed by specific statutory allowances. Subpart A sets out the remaining categories of “Other Necessary Expenses” in individual entry lines. Instructions in these entry lines reflect limitations imposed by the IRS and the need to avoid inclusion of items deducted elsewhere on the forms.

Subpart A concludes with a subtotal of the deductions allowed under the IRS standards.

19A National Standards: food, clothing, household supplies, personal
National Standards: for 1 person households
source: U.S. Trustee, standards for cases filed on or after May 1, 2014.
$583
19B

National Standards: health care.

Enter in Line a1 below the amount from IRS National Standards for Out-of- Pocket Health Care for persons under 65 years of age, and in Line a2 the IRS National Standards for Out-of- Pocket Health Care for persons 65 years of age or older. (This information is available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court.)

Enter in Line b1 the number of members of your household who are under 65 years of age, and enter in Line b2 the number of members of your household who are 65 years of age or older. (The applicable number of persons in each age category is the number in that category that would currently be allowed as exemptions on your federal income tax return, plus the number of anyadditional dependents whom you support.) Multiply Line a1 by Line b1 to obtain a total amount for household members under 65, and enter the result in Line c1. Multiply Line a2 by Line b2 to obtain a total amount for household members 65 and older, and enter the result in Line c2.

Add Lines c1 and c2 to obtain a total health care amount, and enter the result in Line 19B.

Household members under 65 years of age Household members 65 years of age or older
a1. Allowance per member $60 a2. Allowance per member $144
b1. Number of members b2. Number of members
c1. Subtotal $ 0 c2. Subtotal $ 0
$ 0
20A Connecticut Bankruptcy InformationHousing and utilities, non-mortgage expenses
(IRS Standards for Fairfield County, CT:
for 1 person:
source: U.S. Trustee, standards for cases filed on or after May 1, 2014.

Non-Mortgage (utilities) $586
20B Connecticut Bankruptcy InformationHousing and utilities; mortgage/rent expenses
IRS Standards for Fairfield County, CT:
for 1 person:
source: U.S. Trustee, standards for cases filed on or after May 1, 2014.
Mortgage or Rent Allowance $2,001
less mortgage payment claimed on line 42a:
-$0


net allowance allowed $ 2001
21 Housing & Utilities Adjustment if you contend that the process set out in
Lines 20A and 20B does not accurately compute the allowance to which you are entitled under the IRS Housing and Utilities Standards, enter any additional amount to which you contend you are entitled, and state the basis for your contention in the space below:

$ A value is required.Invalid format.

22

Your Transportation

Vehicle Operation Expenses



Select the number of vehicles for which you pay the operating expenses or for which the operating expenses are included as a contribution to your household expenses in Line 8.
Connecticut Bankruptcy InformationLocal (Metro Area) Standards:
Local Standards: tansportation;
vehicle operation/public transportation expense.

Note: You are entitled to this expense allowance regardless of whether you pay the expenses of operating a vehicle and regardless of whether you use public transportation.
$ Standard transportation allowance for vehicle(s) in New York:

New York Transportation Expense Allowances
0 vehicles (mass transit allowance) $184
1 vehicle $342
2 or more $684

source: U.S. Trustee, standards for cases filed on or after May 1, 2014.
$
22B Local Standards: transportation; additional public transportation expense. If you pay the operating expenses for a vehicle and also use public transportation, and you contend that you are entitled to an additional deduction for your public transportation expenses, enter on Line 22B the "Public Transportation" amount from IRS Local Standards: Transportation. (This amount is available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court.)
National Public Transportation Expense Allowance = $184
$
23

Vehicle Ownership or Lease Expense


Select the number of vehicles for which you claim an ownership or lease expense. (You may not claim an ownership/lease expense for more than two vehicles.)

 

Vehicle Ownership / Lease Allowance for Vehicle 1.

a

IRS Transportation ownership/lease expense, First Car

$517

b

Vehicle loan payments: Vehicle 1:
Average Monthly Payment for any debts secured by Vehicle 1, as stated in Line 42b
$0

c

Net ownership/lease expense for Vehicle 1 (a - b, but not less than 0)
(subtract b from a and enter result - monthly payments on secured debts are covered later (line 42))
$ 0
24 Vehicle Ownership / Lease Allowance for Vehicle 2.
(only if you selected "2 or more" on line 23 )
a IRS Transportation Standards, Ownership Costs, Second Car $517
b Vehicle loan payments: Vehicle 2:
Average Monthly Payment for any debts secured by Vehicle 2, as stated in Line 42c
$0
c Net ownership/lease expense for Vehicle 2 (a - b, but not less than 0)  
$ 0

"Other Necessary Expenses" Actual expenses

Unlike the parts this section -- which use 'standard' amounts for each expense -- here you can deduct 'actual' expenses in a broad category called "other necessary expenses." You must be able to provide proof of these expenses.

25 Monthly taxes
Enter the total average monthly expense that you actually incur for all federal, state and local taxes, other than real estate and sales taxes, such as income taxes, self employment taxes, social security taxes, and Medicare taxes. Do not include real estate or sales taxes.
Invalid format.
26 Mandatory payroll deductions
Enter the total average monthly payroll deductions that are required for your employment, such as mandatory retirement contributions, union dues, and uniform costs. Do not include discretionary amounts, such as voluntary 401(k) contributions.
A value is required.Invalid format.
27 Term Life insurance (monthly payment)
Enter average monthly premiums that you actually pay for term life insurance for yourself. Do not include premiums for insurance on your dependents, for whole life or for any other form of insurance.
A value is required.Invalid format.
28 Court-ordered payments (child support, etc.)
Enter the total monthly amount that you are required to pay pursuant to court order, such as spousal or child support payments. Do not include payments on past due support obligations included in Line 44.
A value is required.Invalid format.
29 Education for employment or for a physically or mentally challenged child.
Enter the total monthly amount that you actually expend for education that is a condition of employment and for education that is required for a physically or mentally challenged dependent child for whom no public education providing similar services is available.
A value is required.Invalid format.
30 Childcare expenses, other than education
Enter the total average monthly amount that you actually expend on childcare. —such as baby-sitting, day care, nursery and preschool. Do not include other educational payments.
A value is required.Invalid format.
31

Health Care
Do not include payments for health insurance or health savings accounts listed in Line 34.

a Enter the total average monthly amount that you actually expend on health care that is required for the health and welfare of yourself or your dependents, that is not reimbursed by insurance or paid by a health savings account. $ A value is required.Invalid format.
b subtract allowance amount entered in Line 19B $0
c amount in excess of allowance  
$ A value is required.Invalid format.
32 Telecommunication Services
Enter the total average monthly amount that you actually pay for telecommunication services other than your basic home telephone and cell phone service—such as pagers, call waiting, caller id, special long distance, or internet service—to the extent necessary for your health and welfare or that of your dependents. Do not include any amount previously deducted.
A value is required.Invalid format.
33

Total Expenses Allowed under IRS Standards. Enter the total of Lines 19 through 32  

$ 3,170

Subpart 5B:  Additional Expense Deductions

These are expenses that are not part of the IRS collection standards, but rather added by Congress when they drafted the new bankruptcy law. These deductions are in addition to the expenses allowed under the IRS collection standards.

 To view Congressional Committee notes about this part of the form, click here.

[x] [Close]

Congressional Committee Notes 2005-2008

(incorporates Committee Notes previously published in 2005 and 2006)
for a full copy of the committee report as a pdf file, click here.

2. Additional statutory expense deductions
In addition to the expense deductions allowed under the IRS standards, the means test makes provision—in subclauses (I), (II), (IV), and (V) of § 707(b)(2)(A)(ii)—for six special expense deductions. Each of these additional expense items is set out on a separate entry line in Subpart B, introduced by an instruction that tracks the statutory language and provides that there should not be double counting of any expense already included in the IRS deductions.

One of these special expense deductions presents a problem of statutory construction. Section 707(b)(2)A)(ii)(I), after directing the calculation of the debtor’s monthly expenses under the IRS standards, states, “Such expenses shall include reasonably necessary health insurance, disability insurance, and health saving account expenses . . . .” There is no express statutory limitation to expenses actually incurred by the debtor, and so the provision appears to allow a reasonable “monthly expense” deduction for health and disability insurance or a health savings account even if the debtor does not make such payments, similar to the way in which the National Standards give an allowance for food, clothing and personal care expenses without regard to the debtor’s actual expenditures. However, the statutory language might also be read as providing that the debtor’s “Other Necessary Expenses” should include reasonable insurance and health savings account payments. Since “Other Necessary Expenses” are limited to actual expenditures, such a limitation could be implied here. The forms deal with this ambiguity by allowing the debtor to claim a deduction for reasonable insurance and health savings account expenses even if not made, but also require a statement of the amount actually expended in these categories, thus allowing a challenge by any party who believes that only actual expenditures are properly deductible.

Contributions to tax-exempt charities provide another statutory expense deduction. Section 707(b)(1) provides that in considering whether a Chapter 7 filing is an abuse, the court may not take into consideration “whether a debtor . . . continues to make [tax-exempt] charitable contributions.” Section 1325(b)(2)(A)(ii) expressly allows a deduction from CMI for such contributions that are “reasonably necessary” (up to 15% of the debtor’s gross income), and the Religious Liberty and Charitable Donation Clarification Act of 2005 added language to § 1325(b)(3) to provide the same deduction for above-median income debtors whose disposable income is determined using means test deductions. Accordingly, Subpart B of both the Chapter 7 and Chapter 13 forms includes an entry line for charitable contributions, employing the different statutory deductions allowed in each context.

The Subpart B concludes with a subtotal of the additional statutory expense deductions.

Note: Do not include any expenses that you listed in Lines 19-32


34

Health Insurance, Disability Insurance, and Health Savings Account Expenses. List the monthly expenses in the categories set out in lines a-c below that are reasonably necessary for yourself, your spouse, or your dependents.

a.  Health Insurance A value is required.Invalid format.
b.  Disability Insurance A value is required.Invalid format.
c.  Health Savings Account A value is required.Invalid format.
Total: Add Lines a, b, and c and enter on Line 34 $0
If you do not actually expend this total amount, state your actual total average monthly expenditures in the space below:
$ A value is required.Invalid format.
 
35 Continued contributions to the care of household or family members. Enter the actual monthly expenses that you will continue to pay for the reasonable and necessary care and support of an elderly, chronically ill, or disabled member of your household or member of your immediate family who is unable to pay for such expenses. A value is required.Invalid format.
36 Protection against family violence. Enter the total average reasonably necessary monthly expenses that you actually incurred to maintain the safety of your family under the Family Violence Prevention and Services Act or other applicable federal law. The nature of these expenses is required to be kept confidential by the court. A value is required.Invalid format.
37 Home energy costs. Enter the total average monthly amount, in excess of the allowance specified by IRS Local Standards for Housing and Utilities, that you actually expend for home energy costs. You must provide your case trustee with documentation of your actual expenses, and you must demonstrate that the additional amount claimed is reasonable and necessary. A value is required.Invalid format.
38 Education expenses for dependent children less than 18. Enter the average monthly expenses that you actually incur, not to exceed $147.92 per child, in providing elementary and secondary education for your dependent children less than 18 years of age.You must provide your case trustee with documentation of your actual expenses, and you must explain why the amount claimed is reasonable and necessary and not already accounted for in the IRS Standards. A value is required.Invalid format.
39 Additional food and clothing expense. Enter the average monthly amount by which your food and clothing expenses exceed the combined allowances for food and apparel in the IRS National Standards, not to exceed $20 (five percent of those combined allowances.) (This information is available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court.) You must demonstrate that the additional amount claimed is reasonable and necessary. A value is required.Invalid format.
40 Continued charitable contributions. Enter the amount that you will continue to contribute in the form of cash or financial instruments to a charitable organization as defined in 26 U.S.C. § 170(c)(1)-(2). A value is required.Invalid format.
41

Total Additional Expense Deductions Lines 34 through 40

$0

Subpart 5C:  Deductions for Debt Payment

The means test places no limits on deductions for mortgages or car loans. All secured debts for a car or home can be deducted.

If you are claiming deductions for payments on property that you plan to surrender to the creditor during bankrupcty, note that many courts will not allow that deduction. Check with an attorney in your area to determine what courts allow in your area.

As noted above, the means test is just one factor that courts and trustees look at when reviewing cases for abuse. Even if you pass the means test, section 707(b)(3) allows a judge to refuse a Chapter 7 discharge based on a "totality of circumstances" which can include cases of excessive secured debts for luxury items.

Some commentators suggest that more people will be able to file for Chapter 7 under the new law, because, under the old law, the "reasonableness" of such expenses was considered by the judge. See editorial by James P. Caher, Why the Means Test May Mean More Chapter 7 Filing (and Other Unintended Consequences of Bankruptcy Reform), BestCase Scenarios, Summer 2005, (newsletter for owners of BestCase bankruptcy software).

 

 For Congressional Committee notes about this portion of the form, click here.

[x] [Close]

Congressional Committee Notes 2005-2008

(incorporates Committee Notes previously published in 2005 and 2006)

[excerpt]
for a full copy of the committee report as a pdf file, click here

3. Deductions for payment of debt

Subpart C deals with the means test’s deductions from CMI for payment of secured and priority debt, as well as a deduction for administrative fees that would be incurred if the debtor paid debts through a Chapter 13 plan.

In accord with § 707(b)(2)(A)(iii), the deduction for secured debt is divided into two entry lines—one for payments that are contractually due during the 60 months following the bankruptcy filing, the other for amounts needed to retain necessary collateral securing debts in default. In each situation, the instructions for the entry lines require dividing the total payment amount by 60, as the statute directs. The forms recognize another ambiguity in this connection: “payments contractually due” might either be understood as limited to payments of principal and interest (payable to secured creditor) or, in the context of a mortgage with an escrow, might be understood as including payments of property taxes and insurance (ultimately paid to taxing bodies and insurers, but initially payable to the mortgagee). The forms require the debtor to specify whether the amount deducted includes taxes and insurance, allowing a party in interest to inquire into the deduction and raise an objection.

Priority debt, deductible pursuant to § 707(b)(2)(A)(iv), is treated on a single entry line, also requiring division by 60. The instruction for this line makes clear that only past due priority debt—not anticipated debts—should be included. Thus, future support or tax obligations, and future fees that might be payable to a Chapter 13 debtor’s attorney, are not included.

The defined deduction for the expenses of administering a Chapter 13 plan is allowed by § 707(b)(2)(A)(ii)(III) only for debtors eligible for Chapter 13. The forms treat this deduction in an entry line requiring the eligible debtor to state the amount of the prospective Chapter 13 plan payment and multiply that payment amount by the percentage fee established for the debtor’s district by the Executive Office for United States Trustees. The forms refer debtors to the website of the U.S. Trustee Program to obtain this percentage fee.

The subpart concludes with a subtotal of debt payment deductions.

 42   Future payments on secured claims. For each of your debts that is secured by an interest in property that you own, list the name of the creditor, identify the property securing the debt, state the Average Monthly Payment, and check whether the payment includes taxes or insurance. The Average Monthly Payment is the total of all amounts scheduled as contractually due to each Secured Creditor in the 60 months following the filing of the bankruptcy case, divided by 60. If necessary, list additional entries on a separate page. Enter the total of the Average Monthly Payments on Line 42.
Name of Creditor Property Securing the Debt Average Monthly Payment Does payment include taxes or insurance?
a. Home $
b. Vehicle 1 $ A value is required.
c. Vehicle 2 $
Total: Add Lines a, b, and c $0  
     43  Other payments on secured claims. If any of debts listed in Line 42 are secured by your primary residence, a motor vehicle, or other property necessary for your support or the support of your dependents, you may include in your deduction 1/60th of any amount (the “cure amount”) that you must pay the creditor in addition to the payments listed in Line 42, in order to maintain possession of the property. The cure amount would include any sums in default that must be paid in order to avoid repossession or foreclosure. List and total any such amounts in the following chart. If necessary, list additional entries on a separate page.
Name of Creditor Property Securing the Debt in Default Cure Amount 1/60th of
the Cure Amount
 
a. $ 0  
b. $ 0  
c. $ 0  
Total: Add Lines a, b, and c $0  
44

Payments on 'priority claims'
(only claims that are owed as of the date you file for bankruptcy)

Payments on prepetition priority claims. Enter the total amount, divided by 60, of all priority claims, such as priority tax, child support and alimony claims, for which you were liable at the time of your bankruptcy filing. Do not include current obligations, such as those set out in Line 28. $ Invalid format.
45

Chapter 13 Administrative Expenses


Chapter 13 administrative expenses. If you are eligible to file a case under Chapter 13, complete the following chart, multiply the amount in line a by the amount in line b, and enter the resulting administrative expense.
a.  Projected Average Monthly Chapter 13 Plan Payment
Default projected amount $0
(Default projection based on:
line 42 + line 43 + line 44 + 1/60 of line 54 ($0))
Your projected Chapter 13 expense may be a different amount, depending on such factors as whether mortgage payments would be paid through the Chapter 13 plan or outside it.
If you would like to use a different projected Chapter 13 payment, enter it here.
Otherwise, leave this field blank or 0.
 
b.  Current multiplier for Connecticut District Bankruptcy Court x 8.2%  
c.  Average Monthly Administrative Expense of Chapter 13 case
Source:
$0
46

Total Deductions for Debt Payment (Lines 42 through 45)

$ 0

Subpart 5D:  Total Deduction Allowed

47

Total of All Deductions (Lines 32, 40, and 46)

$ 3,170

Part 6: Determination of Means Test Result

-
48

Enter the amount from Line 18 (Monthly Income)

$0
49

Enter the amount from Line 47 (All Deductions from Income)

$ 3,170
50

Monthly disposable income (Line 48 - Line 49)

$ -3,170

51

60-month disposable income (Line 50) x 60

Amount you could pay in a hypothetical five-year Chapter 13 plan.

$ -190,200

52

Initial presumption determination

IF RESULT
Amount on Line 51 is less than $7,475 Pass Means test
Amount on Line 51 is more than $12,475 Fail Means Test
Amount on Line 51 is more than $7,475 but less than $12,475 Pass IF Line 51 < Line 54
Fail IF Line 51 > Line 54

Because your family income does not exceed the median income for a family of similar size for your state, the presumption of abuse in your case does not arise. You can file for Chapter 7 or Chapter 13 Bankruptcy.'

53

Enter amount of total non-priority unsecured debt

$
54

Threshold debt payment amount (25% of debt)

$0

55

Secondary presumption determination

You Pass the Median Income Test
Because your family income does not exceed the median income for a family of similar size for your state, the presumption of abuse in your case does not arise. You can file for Chapter 7 or Chapter 13 Bankruptcy.

Part 7: Additional Expense Claims

Other Expenses. List and describe any monthly expenses, not otherwise stated in this form, that are required for the health and welfare of you and your family and that you contend should be an additional deduction from your current monthly income under § 707(b)(2)(A)(ii)(I). If necessary, list additional sources on a separate page. All figures should reflect your average monthly expense for each item. Total the expenses.

Congressional Committee Notes

The forms do not provide for means test deductions from CMI for expenses in categories that are not specifically identified as "Other Necessary Expenses" in the Internal Revenue Manual. However, debtors may wish to claim expenses that do not fall within the categories listed as "Other Necessary Expenses" in the forms. Part VII of the Chapter 7 form and Part VI of the Chapter 13 form provide for such expenses to be identified and totaled. Although expenses listed in these sections are not deducted from CMI for purposes of the means test calculation, the listing provides a basis for debtors to assert that these expenses should be deducted from CMI under § 707(b)(2)(A)(ii)(I), and that the results of the forms' calculation, therefore, should be modified.


    Expense description Monthly amount
56 Expense description a:
Expense description b:
Expense description c:

Monthly amount total:

 

$ 0

form template 22A - / 06606/

END OF MEANS TEST

 

Click here to see your bottom line result.

 

CloseWhat is the means test?

You may have read that the new bankruptcy law imposes a "means test" on who can file for Chapter 7 bankruptcy.

You might think this new test will prevent you from filing. But, chances are, you're wrong. Most people considering bankruptcy have no trouble passing the means test. Indeed, some lawyers think more people will qualify for Chapter 7 under this test than under the old law, where judges had no fixed formula.

Use this calculator find out where you stand.

The Formula

The law now uses a standard mathematical formula to determine whether you can file for Chapter 7 -- or, to put it in legal terms, whether filing for Chapter 7 would be an 'abuse' of the bankruptcy system. (Those who fail the means test, are left with a Chapter 13 repayment plan as their only bankruptcy option.)

The means test is actually a two-part test and you only need to pass one of them to qualify for Chapter 7.

Test 1. "Median Income"
This is a very simple test that compares your average household income for the past six calendar months to the median income for your state, If your income is below the median, you qualify for Chapter 7. If it is above the median, you must pass Test 2.

Test 2. "Disposable Income"
This test deducts expenses from your income to determine how much you can pay your unsecured creditors over the next five years:

  • If you can pay at least $11,725 ($195.42 per month), you can't file for Chapter 7.
  • If you can pay at least $7,025 ( about $117 per month) and that is at least 25% of what you currently owe your unsecured creditors, you can't file for Chapter 7.
  • If your disposable income is less than $117 per month, you can file for Chapter 7.

Certain deductions are standard allowances based on the number of vehicles you operate, the number of people in your household, and the cost of living in .

In addition, to these standard deductions, you can also deduct the full amount of certain actual expenses such as mortgage and vehicle loan payments.

Close

Close Do I need to complete the means test?

If you are filing for Chapter 13 bankruptcy, you do not need to complete the means test. However, you do need to complete a form almost identical to it — and that will determine how much you must pay in a Chapter 13 plan.

If you want to file for Chapter 7 bankruptcy, you must at least complete the first part of the form to figure your "current monthly income" (CMI), which is based on your average income over the past six calendar months. That number will determine whether you must complete the rest of the form.

If your CMI is below the median income for for a household your size, then you do not need to complete the means test.

If your CMI is higher than the median for for a household your size, you must complete the means test to compute your monthly "disposable" income (that is, income minus expenses). The result of that computation will determine whether you are eligible for Chapter 7 bankruptcy.

Close

Close How long does this take?

Using this calculator takes about 20 minutes. For some, the answer may be obvious after only a few questions.

Is it private?

This calculator is completely anonymous. We do not ask -- and no not want -- any personally identifying information linking you to these numbers, other than a zip code. We do keep statistical data on amounts that user have entered, so that the site may monitor the needs of its users and adjust services accordingly. However, To us, this is data for statistical analysis only. For more information. See the privacy notice.

Garbage in, garbage out

If you don't put in the correct numbers in the correct blanks, this calculator won't give you an accurate result. It only does the math. It is your responsibility to put the right numbers in the right blanks. Helpful resources are available throughout the test to help you figure out what the form is asking for and what to put where.

Be sure to account for all the different kinds of income you receive. If you're not sure what to put in an 'expense' blank, skip it. You may find that it doesn't' matter -- that is, you may qualify regardless of what number you put in that blank.

If you need assistance, this website has listing of books and local services that offer bankruptcy help.

Where to find the Official Means Test form

If you end up actually filing for Chapter 7 bankruptcy you need to fill out official form (22A). which you can find here. This calculator is based on that form. Close

CloseHousehold Size: When is a family of 3 not a family of 3?

The issue of household size can be tricky in cases of shared custody, children who live at college part of the year, or non-custodial children living in the household.

There will undoubtedly be litigation on this subject. The official form seems to suggest that the issue is whether the person is part of the household and is a dependent. (That is, you can't include a roommate who is not your dependent in your household size, yet you may have to include the portion of their income that contributes to the overall income of the household. See the help topic on that subject. This can be an issue for same-sex couples who cannot legally marry.)

RELATED INFO:

In April 2010, the United States Trustee's office issued a PDF of their official position on legal issues surrounding each line of the Chapter 7 means test form 22A. Keep in mind that the Trustee tends to protect creditor interests, so a debtor's bankruptcy attorney may not agree with every one of these positions. That said, if you can easily pass the means test under the trustee's relatively stingy interpretation of the rules, all the better.

The U.S. Trustee's Office's official statement (released April 2010) on how to fill out form 22A takes the the following position on how to fill out the means test:

Line 14, Applicable median family income.

  • "Applicable state" is state of residence at filing.
  • If married and two different households, residence is where most family members reside.
  • If no plurality of family members are in any one state, use state of spouse with highest income.
  • "Household size" is the debtor, debtor's spouse, and any dependents that the debtor could claim under IRS dependency tests. The USTP uses the same IRS test for the definition of both"household" and "family." IRS Publication 501 explains the IRS tests for "dependent."
  • The USTP departs from the IRS dependent test (as does the IRS when it determines family size for collection purposes) in cases justifying "reasonable exceptions" (e.g. a long standing economic unit of unmarried individuals and their children). However, if an individual is counted as a family member for median income purposes, that individual's income should be included as income on Part II of Form 22A .

Line 8 of the means test:

  • Includes payments made monthly, quarterly, or annually.
  • Includes payments regardless of written agreement with contributor.
  • Includes payments from roommate, partner, parent, or relative, regardless of whether living with debtor.
  • Includes payments made directly to creditors on behalf of debtor, e.g., rent, car, or insurance.
  • Does not include payments from non-filing spouse (which are already included as income in Column B).
Close

CloseContributions of roommates or domestic partners to household income

At least one site on the web has addressed this issue. King's Bankruptcy Media (a lawyer's website) states what appears to be the correct rule: that, if a roommate or domestic partner is contributing income to the household, then that portion of the roommate's income must be included in the overall amount of 'household income' on line 8 of the official form, where it asks for "contributions to household income."

RELATED INFO:

The U.S. Trustee's Office's official statement (released April 2010) on how to fill out form 22A takes the the following position on how to fill out the means test:

Line 14, Applicable median family income.

  • "Applicable state" is state of residence at filing.
  • If married and two different households, residence is where most family members reside.
  • If no plurality of family members are in any one state, use state of spouse with highest income.
  • "Household size" is the debtor, debtor's spouse, and any dependents that the debtor could claim under IRS dependency tests. The USTP uses the same IRS test for the definition of both"household" and "family." IRS Publication 501 explains the IRS tests for "dependent."
  • The USTP departs from the IRS dependent test (as does the IRS when it determines family size for collection purposes) in cases justifying "reasonable exceptions" (e.g. a long standing economic unit of unmarried individuals and their children). However, if an individual is counted as a family member for median income purposes, that individual's income should be included as income on Part II of Form 22A .

Line 8, Any amounts paid by another person or entity, on a regular basis, for the household expenses of the debtor or the debtor's dependents, including child or spousal support.

  • Includes payments made monthly, quarterly, or annually.
  • Includes payments regardless of written agreement with contributor.
  • Includes payments from roommate, partner, parent, or relative, regardless of whether living with debtor.
  • Includes payments made directly to creditors on behalf of debtor, e.g., rent, car, or insurance.
  • Does not include payments from non-filing spouse (which are already included as income in Column B).
Close

CloseOther Noteworthy Calculators on the Web

CNN/Money Magazine's Budget Calculator compares your monthly expenses to national averages for people with your income and home situation. It's not localized by location.

The bankruptcy court for the Middle District of Florida provides an Excel worksheet of a means test calculator, but it only has figures for counties in that Florida district, and the numbers have not been updated since 2007.

ChooseToSave.org offers an extensive list of calculators for all types of financial decisions including car loans, credit cards, college savings, to retirement savings options.

Close

CloseIf I Pass the Means Test, Can I still be barred from filing bankruptcy?

Yes, you can still be barred from filing Chapter 7 bankruptcy.

Passing the means test removes one barrier: it means that you are not "presumed" to be "abusing" the bankruptcy system under 707(b)(2). It is an essential first step, and for most people, that is that. They are clear to file.

However, in some cases, a bankruptcy judge may rule that case should be dismissed becuase to the "totality of the circumstances" under 707(b)(3).

Example 1: In Iowa, a judge ruled that a debtor was abusing the system because in the year preceding his bankruptcy, he received substantial sums of money from various sources and spent it all on unnecessary indulgences, rather than pay down his debt. In re James, 345 B.R. 664 (Bkrtcy.N.D.Iowa 2006).

And, while the means test income analysis looks backward, a court can use 707(b)(3) to look forward.

Example 2: In another example, a Northern California court denied a debtor the right to file Chapter 7 because the debtor was about to have a substantial increase in income. In re Pak, 343 B.R. 239 (Bkrtcy.N.D.Cal. 2006).

 

Close

CloseIf I fail the Means Test, can a judge allow me to file anyway?

Yes, a judge can allow you to file for Chapter 7 bankruptcy even if you fail the means test, but only you are able able to show "special circumstances."

Some examples of possible "special circumstances" are job loss or pay cut, a serious medical condition, or unusually high child care expenses.  You must be able to produce proof of your expenses and that your expenses are reasonable -- and that you have no reasonable alternative.

Close

CloseWhat are "priority claims"?

This is a technical term used in bankruptcy law. A list of the most common priority claims can be found on Form 10 (Proof of Claim). These include

  • past due debts for child and spousal support,
  • most unpaid taxes, and wages,
  • salaries or commissions you owe to employees and
  • contributions you owe to an employee benefit fund.

The full list of the nine types of priority debt is found in section 507(a) of the bankruptcy code. Close

ADVERTISEMENTS - Services listed in advertisements are not endorsed or reviewed by LegalConsumer.com

Expense Allowances:
Local & National Standards
for Fairfield County, Connecticut

Assumptions:

Household Size: 1
Vehicles:
- on which you pay operating expenses: 1 (Line 22)
- on which you pay ownership or lease expenses: 1 (Line 23)

County:
Metro Area: New York

Median Income

Median Income for a 1 person household: $5,107 per month

Your monthly income for means test : $0 (See Part 2 and Part 4 Line 18)

Housing expenses

 Bankruptcy Informationfor 1 person in Fairfield County, CT.

$586 monthly expense allowance for housing and utilities, non-mortgage expenses (Line 20A)

and

$2,001 monthly expense allowance for mortgage/rent expenses (Line 20B)
(This is a minimum amount. if your mortgage payment is higher, you get the full amount of the mortgage.Not so for rent, unfortunately.)

Living expenses

$583 monthly allowance for food, clothing, household supplies, personal care, miscellaneous (Source:
National Standards (for 1-person households, regardless of income.)

Out-of-Pocket Healthcare expenses

$0 monthly allowance for 'out-of-pocket healthcare costs' other than health insurance

(Source:
National Standards for
* persons under 65
   @$60/person and
* persons 65 or over
   @$144/person.
See line 19B)

Transportation expenses

$ monthly allowance for mass transit or vehicle operation expenses (i.e. gas, repairs, maintenance) for vehicle s in New York

$ 0 additional monthly allowance claimed for public transportation (Line 22B)

$ 0 monthly allowance for vehicle ownership or lease expenses for vehicle s . (This is the standard amount. If your car loan payment is higher, you can deduct the full amount of the car loan. Not so for lease expenses, unfortunately.)

$ 3,170 = Total Standard Monthly Expense Deductions

Your Means Test Summary

Your Household Info

Household size:
Location: , (New York)
Vehicles:
- that you pay expenses on:
- that you own or lease:

Median Income Test

 Bankruptcy Information CT monthly median for a -person household: $5,107

Your monthly household income $0 (line 12)

Income is below state median.
You qualify for Chapter 7
(no need to compute expense deductions).

Means Test

Monthly Income

Monthly income for means test: $0 (line 18)

Monthly Expenses

 Bankruptcy InformationAutomatic Deductions for : $3,170

Other Deductions (for Actual Expenses): $0

Deductions for Debt Payment $0


TOTAL DEDUCTIONS: $ 3,170

Disposable Income

$ -3,170 per month
($-190,200 over 5 years)

Bottom Line

Based on the information you have entered so far, you pass the means test requirements to qualify for Chapter 7 bankruptcy, because your monthly income of $0 is below the median income for -person households in ($5,107).

Summary of your data:

Your average monthly income is $0 and, so far, you have expense deductions totaling $ 3,170 per month. That would leave you with $ -3,170 at the end of each month to pay into a hypothetical, five-year Chapter 13 bankruptcy plan, which would pay your unsecured creditors $ -190,200 over the next five years.

ADVERTISEMENTS - LegalConsumer.com does not endorse or review advertised products or services.

Welcome, Connecticut users of Nolo's
How to File for Chapter 7 Bankruptcy

How to File for Chapter 7 Bankruptcy
LegalConsumer.com helps you find local Connecticut information and services to help you file for bankruptcy.

If you don't own the book, you can still use this site and the free Fairfield County means test calculator.

Don't own a copy?

Learn more...

Albin Renauer, the operator of LegalConsumer.com and the Means Test Calculator, is also a coauthor of Nolo's How to File for Chapter 7 Bankruptcy.

How to File for Chapter 7 Bankruptcy provides clear, user-friendly information and all the forms you need to get through the entire bankruptcy process. The book and the local resources you'll find on LegalConsumer.com are a perfect combination. The book is designed to work with LegalConsumer.com's means test calculator and lists of Connecticut exemption laws, which determine what property you'd get to keep in bankruptcy.

The book covers the entire process, and gives you the line-by-line instructions you need to fill out the required Chapter 7 bankruptcy forms. Meanwhile, this website gives you access to the latest local court information and county standards for the means test calculations that you must do to file a sucessful bankruptcy petition.

But first, use the book to find out whether you qualify for Chapter 7 -- and whether or not it's the best way to deal with your debts. It's important to learn what bankruptcy cannot do. You don't want to go to all the trouble of filing bankruptcy only to find out that the it won't help solve your particular problem or kind of debt. The book clearly explains what doesn't bankruptc yan and cannot do.

If you do decide Chapter 7 bankruptcy is the right option, you'll learn how you can use it to:

  • cancel as much debt as possible
  • stop wage garnishments and attachments
  • keep the maximum amount of property using Connecticut exemption laws
  • deal with secured debts and liens on your property
  • keep your home and car, if possible.

If you think you want to file for bankruptcy but aren't sure you can afford to hire an attorney, How to File for Chapter 7 Bankruptcy will help you learn what it takes to complete your bankruptcy petition on your own and complete the bankruptcy process.

You'll also learn how to rebuild your credit rating after bankruptcy.

Note: How to File for Chapter 7 Bankruptcy doe s not cover business bankruptcies, farm reorganizations (Chapter 12) or individual repayment plans (Chapter 13). For Chapter 13 bankruptcy, see Nolo's  Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time.

"Clear instructions on when and how to fill out the necessary forms."
-Forbes

"Exceptionally clear…"
-The New York Times

"A do-it-yourself bankruptcy book for people who can’t afford expensive lawyers."
-Newsweek

 

Inclluded Forms:

  • Current Monthly Income Worksheet
  • Personal Property Checklist
  • Property Exemption Worksheet
  • Homeowners’ Worksheet
  • Bankruptcy Forms Checklist
  • Bankruptcy Documents Checklist
  • Median Family Income Chart
  • Judicial Lien Worksheet
  • Amendment Cover Sheet
  • Notice of Change of Address
  • Supplemental Schedule for Property Acquired After Bankruptcy Discharge
  • Proof of Service by Mail
  • Pleading Paper 

How to File for Chapter 7 Bankruptcy

Press Reviews

"Exceptionally clear."
The New York Times
"How to File for Chapter 7 Bankruptcy advises on everything from how to file court papers to how to respond to threats from creditors.... A do-it-yourself bankruptcy book for people who can’t afford expensive lawyers."
Newsweek
"An in-depth guide to filing under Chapter 7, including state-by-state and federal exemptions as well as forms for do-it-yourself filers."
Kiplinger’s Personal Finance Magazine
"Can help you decide if bankruptcy is the right option for you."
Detroit News
"A valuable, easy-to-understand workbook."
Los Angeles Times
"Includes clear instructions on when and how to fill out all the necessary forms, which assets you may legally keep, even advice on whether your case is complicated enough to make it worth your while to hire a lawyer."
Forbes
"The best [bankruptcy books] I know are published by Nolo."
Harry S. Gross, host of
“Speaking of Your Money”
"Covers all the recent changes to the bankruptcy law, and shows you how to get through the entire process with the least damage."
Accounting Today

Customer Review

"I bit the bullet, and purchased Nolo's How to File Chapter 7 Bankruptcy. I represented myself in court and I was granted a discharge of all debts five months later."
Danielle A.,
Richmond, VA

Buy & Download now: Nolo (publisher)

Chapter 13 Bankruptcy:
Keep Your Property & Repay Your Debts Over Time
(11th edition, 2012)

Chapter 13 Bakruptcy Book
Are you behind on your mortgage, taxes or other bills? Are creditors threatening foreclosure or repossession? Consider Chapter 13 bankruptcy, which can give you an affordable repayment plan -- and let you keep your house, car and other property. Use this plain-English guide to decide whether or not it's right for you.

Nolo's Chapter 13 Bankruptcy breaks down the Chapter 13 process and provides clear explanations of the law. First, you can:

  • consider nonbankruptcy alternatives for solving your debt problems
  • decide which is better for you -- Chapter 7 or Chapter 13
  • determine whether you qualify for Chapter 13 bankruptcy

Then, delve deeper into Chapter 13 and find out:

  • how filing bankruptcy stops creditors instantly (the "automatic stay")
  • how Chapter 13 can help you avoid foreclosure
  • whether you can reduce your car loan balance, or the balance on other secured debts
  • whether you can get rid of second mortgages or home equity debt

If you think Chapter 13 bankruptcy could work for you, you'll be ready to:

  • determine (with the book's forms and step-by-step instructions) whether you have enough income to come up with a repayment plan that the court will approve
  • calculate the amount of your monthly plan payment
  • find and work effectively with an excellent lawyer, and
  • rebuild your credit after bankruptcy.

This newest edition includes information on hiring and working with a lawyer, recent court rulings that interpret the federal bankruptcy laws. You'll also find the latest bankruptcy exemption laws in your state, which determine what copy you can keep, and recent IRS standard expense amounts, which affect Chapter 13 plan payments.

In Paperback and eBook (Adobe Reader)
Pub. Date: May 2012
Edition: 11th
Pages: 496 pp
ISBN: 9781413310696
Forms: 29 forms

List Price: 39.99
Buy now:
Nolo (publisher)

 


Chapter 13 Bankruptcy: Repay Your Debts

Press Reviews

"In Nolo’s usual thorough fashion, here is a guide to an alternative to the typical Chapter 7 Bankruptcy."
Orange County Register
"An excellent book that can guide you through the [Chapter 13] process."
Forbes Magazine
"Chapter 13 Bankruptcy will save you a fortune in attorney fees and confusion."
The Midwest Book Review
"This is the best book going if you choose to file alone or if you want background on the Chapter 13 process."
Attorney Gary Klein,
co-author of Consumer Bankruptcy Law and Practice
"An excellent resource..."
Consumers Digest
"Contains many tear-out forms, federal and state exemptions charts, and the most recent legal documents and instructions on how to fill them out. "
Reference & Research Book News

Buy now: Nolo (publisher)

ADVERTISEMENTS - LegalConsumer.com does not endorse or review advertised products or services.

The New Bankruptcy: Will It Work For You? (New Bankruptcy)

The new bankruptcy by Attorneys Leon Bayer & Stephen Elias.

Is bankruptcy the right solution for your overwhelming debts? Pick the best strategies for your situation with the information and practical suggestions in The New Bankruptcy. Find out:

  • if you qualify for Chapter 7 bankruptcy
  • how Chapter 13 repayment plans work
  • how bankruptcy affects credit

File for bankruptcy with confidence!

In Paperback and eBook (Adobe Reader)
Pub. Date: May 2013
Edition: 5th
Pages: 394 pp
ISBN: 9781413319040
Forms: 27 forms

Buy this Book: Nolo (publisher's site)


The New Bankruptcy

Welcome, users of Nolo's
Credit Repair

Credit Repair

An astounding 80 percent of credit reports contain errors. And if your credit report is one of them, it can have serious consequences: a bad credit score can make you ineligible for a good rate on a credit card or loan, keep you from renting a place to live, and even sabotage your chances of getting hired for a new job.

That's why you need to be certain that your credit record is accurate and up to date. Credit Repair shows you how to fix mistakes in your credit report -- and limit the damage caused by blemishes on your credit history.

In sharp contrast to "fix bad credit" scams, Credit Repair shows how you can effectively rebuild your credit record, step by step. Learn how to:

  • read and understand your credit report
  • get mistakes on your credit report fixed
  • protect your Social Security number
  • get positive information added to your credit report

To avoid future problems,use this bestselling book to create a budget and avoid overspending. Learn how to:

  • get out of debt now
  • negotiate with creditors
  • avoid overspending
  • establish a realistic budget
  • build a financial cushion

Includes all the legal forms you need!

In Paperback and eBook (Adobe Reader)
Pub. Date: May 2011
Edition: 10th
Pages: 268 pp
ISBN: 9781413314205
Forms: 39 forms

Buy & download now @
Nolo (publisher)


Credit Repair

Press Reviews

"With last year's change in the bankruptcy laws creating unprecedented confusion in the field, it's important to know whether it remains a viable option, and this book will offer both explanations and reassurances..."
Accounting Today

The Foreclosure Survival Guide

The Foreclosure Survival GuideKeep Your House or Walk Away With Money In Your Pocket
(3rd ed, September 2011)


by Attorney Stephen R. Elias

Facing foreclosure? Know your options!

If you're having trouble making your mortgage payments or are already in jeopardy of foreclosure, The Foreclosure Survival Guide compassionately gives you the practical information you need, step by step.

An essential tool for anyone at risk of foreclosure, The Foreclosure Survival Guide provides key information about:

  • mortgages, including adjustable rate mortgages (ARMs)
  • short sales
  • deeds in lieu of foreclosure
  • judicial and non-judicial foreclosure
  • credit counseling
  • liens, and
  • using bankruptcy to deal with foreclosure.

The Foreclosure Survival Guide gathers all the information Attorney Stephen R. Elias has used to help hundreds of clients over 30 years of practicing law and shows you how to deal with foreclosure.

Like many hardworking people facing foreclosure in this rough economy, you deserve answers to your pressing questions. Thorough and easy to understand, The Foreclosure Survival Guide can help you stay in your home or walk away with money in your pocket.


Solve Your Money Troubles:
Debt, Credit & Bankruptcy
(13th ed, 2011)

How to File For Bakruptcy

Feeling overwhelmed by your debts? If you're ready to regain your financial freedom, feeling the squeeze of the housing bust or simply get smarter about managing your money, you'll find everything you need in this complete guide. Solve Your Money Troubles shows you how to:

 

  • prioritize debts
  • create a budget
  • negotiate with creditors
  • stop collector harassment
  • challenge wage attachments
  • contend with repossessions
  • respond to creditor lawsuits
  • qualify for a mortgage
  • rebuild credit
  • decide if bankruptcy is the right option for you

To make the process easier, the 12th edition of Solve Your Money Troubles includes all-new sample letters to creditors which reflect changing financial times, as well as worksheets and charts to calculate your debts and expenses and help you create a repayment plan. You'll also get fully updated state laws and new information on dealing with foreclosure.

In Paperback and eBook (Adobe Reader)
Pub. Date: April 2011
Edition: 13th
Pages: 536 pp
ISBN: 9781413314212
Forms: 7 forms

Buy & download now @
Nolo (publisher)


Money Troubles

ADVERTISEMENTS - Services listed in advertisements are not endorsed or reviewed by LegalConsumer.com

 

Remove saved cookie