The Means Test: The Clunker Allowance

As if the means test wasn’t illogical and opaque enough, consider  the unwritten provision for old cars. Where do you find the unwritten allowance?  It’s not in the Bankruptcy Code but in the Internal Revenue Manual at 5.8.20.3. The IRS  allows a delinquent taxpayer with a paid for car more than 6 years old or […]

New Bankruptcy Lawyer: Meet Old Car Allowance

Bankruptcy courts have embraced an unwritten deduction for older cars for purposes of the means test.  You won’t find this deduction in the official forms and I’ve had a hard time finding the text in the  on- line Internal Revenue Manual, but the cases repeatedly cite Internal Revenue Manual 5.8.5.5.2 as authority for allowing debtors […]