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 […]
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 […]
Bankruptcy’s Means Test Doesn’t Apply to All
New bankruptcy lawyers sometimes forget in the flurry over getting the means test right that it only applies when the debts are primarily consumer. Primarily means over half in dollar amount. The code defines consumer debts in §101(8) as debt incurred for a personal, family or household purpose. You may be surprised by the kinds […]
Taxes Owed from Day One of New Year
April 15th is so ingrained in our thinking as Tax Day that it’s easy to forget that the tax for the previous year is owed on the first day of the next tax year. Payment isn’t due til April 15th, but the obligation exists before the return and payment are due. Why is this important […]
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 […]
