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 […]

Getting the Most from the 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 […]