Not every expenditure that benefits the debtor’s household or his family is a household expense. And, if it’s not a household expense, it doesn’t get added to CMI in a single spouse bankruptcy filing. That’s how the marital adjustment should work. But it’s not so simple. Household expense is not an expansive definition After last week’s […]
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. If you can check the B-22A box that the debts are not primarily consumer debts, you get to skip the rest […]
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? […]
Means Test: Mean and Meaningless
Years after BAPCPA became law, I’m still grinding my teeth about the inanity of the means test. It consumes a huge amount of my time, gathering numbers about the cost of telecommunications services and my client’s projected costs of health care. I get to know more about their ailments than anyone but their spouse and […]
Means Test: Getting Business Income Correct
I expect clients to conflate themselves and their wholly owned business corporation; I didn’t expect the new bankruptcy lawyer to treat the corporation as if it didn’t exist. Yet as I reviewed a B-22 for a rookie bankruptcy lawyer, I found all of the corporation’s gross income included in the means test for the individual […]
Means Test & Creditors Claims: Enough is Enough
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 […]
