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 to […]
Bankruptcy Schedules Look Forward and Backward
New bankruptcy lawyers are often frustrated by the internal inconsistencies required by the “reformed” Bankruptcy Code. Whether it’s rational or not, the means test income figure looks backward while the means test expenses set forth are prospective. Some of those prospective expenses are actual (taxes ) while others are contractual (mortgage payments). Social Security income […]
