At the risk of borrowing trouble, I’m looking ahead to changes to the tax laws that may adversely impact pending Chapter 13 cases. The 2017 Tax Cuts and Jobs Act ( probably as appropriately named as the Bankruptcy Abuse and Consumer Protection Act) limits the deductibility of state and local taxes, including property taxes. A […]
Getting Means Test Tax Projections Right
By Filed Under: Bankruptcy Practice, Means test
Mention tax calculations to a bankruptcy attorney and 7 out of 10 freeze on the spot. I’m not a tax attorney, they retort. That’s right, but, if you are a bankruptcy attorney, that doesn’t relieve you from knowing enough tax to get the means test right. Not to mention not giving up your client’s tax […]
When The Means Test Is Not So Mean
By Filed Under: Means test
It isn’t often that the newspaper provides ideas for this site, whose focus is polishing new bankruptcy lawyers. But a story on the surge in cost for health insurance based on a study by the Commonwealth Fund reminded me to remind you: the means test allows deduction for the cost of health insurance, even […]
Means Test & Creditors Claims: Enough is Enough
By Filed Under: Means test
When the means test projected disposable income number is greater than 100% of the unsecured claims, full repayment is sufficient. The means test calculation only kicks in under §1325(b) if a party objects; no one objects to repayment of everything that is owed. A new bankruptcy attorney brought me a B 22 form for a […]
Getting the Most from the Means Test
By Filed Under: Means test
When the means test look back period for a well paid individual includes the end of the year, a bankruptcy lawyer cannot rely on the paystubs to define the tax deductions. That’s because contributions to Social Security and other some other taxes are capped at certain income levels. Wages above the cap are not subject […]
