There’s a way around the means test. And it’s right there in the Code. Yet we forget. The ***x!!XXX thing only applies to debtors whose debts are primarily consumer. Consumer debt is defined: 8) The term “consumer debt” means debt incurred by an individual primarily for a personal, family, or household purpose. I had to […]
Tax Changes & Projected Expenses
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
The means test tax deduction offers fertile ground for passing the means test. But 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 Your Client Out Of The Means Test Jail
As much as the means test is a pain in the neck, why don’t more bankruptcy attorneys skip it? Finding that your client’s debts are not “primarily consumer” is an instant, get-out-of-jail-free card. In case, if you are in jail because you are not able to repay your debts, you can contact a reliable bail […]
When The Means Test Is Not So Mean
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 […]
Use The Real Tax Due Date For Means Test
Californians: did you know property taxes were due earlier this week? Huh? you say. Property taxes are due in April and December. Wrong. Property taxes are due February 1st and November 1st. They are delinquent if not paid by April 10th and December 10th. Interesting, you say. But what’s the implication for bankruptcy’s means test? […]
The Mystery Of The Disappearing Means Test Deduction
Just when you thought you figured out the means test, a debtor throws you a curveball. Like the Naked City, there are eight million means test stories out there. This is one of them. Last night, I’m reviewing a petition that a young lawyer I mentor was prepared to file. The debtor is recently married […]
