I is for Income

Income, means test, Schedule ILeave a commentTerrance Leeders

Income.  So many topics to cover.  Schedule I is where income is listed in a bankruptcy petition. The Means Test Form 22a and Form 22C (chapter 7 or chapter 13 respectively) computes disposable monthly income too.  This is a 6 month average of all household income leading up to the case, along with allowable deductions for taxes, insurances, and set amounts based on where the debtor lives.All income must be disclosed in a bankruptcy case.   This includes child support,...

Can a spouse file an individual bankruptcy?

chapter 13, chapter 7, CMI, joint filing with spouse, means testTerrance Leeders

I received an email today from a prospective client asking if a spouse could file bankruptcy without her spouse. Excellent question.

Although both spouses are not required to file bankruptcy jointly, the Bankruptcy Code does require both spouses income to be included in the means test analysis for CMI - current monthly income. However, most people 'pass' the means test analysis and can file for Chapter 7 bankruptcy protection. See previous posts for the median income level in Illinois....

Bankruptcy Chapter 13 Law update

chapter 13 bankruptcy, means testLeave a commentTerrance Leeders

Projected Disposable Income is the Same as Disposable Income(Form B22C Controls)In re Farrar-Johnson, WL 2662709 (Bankr. N. D. Ill. 9/15/06.)Under Chapter 13 where a debtor is above the median income, section 1325(b)(3) makes clear that Schedule J has no role in calculating disposable income when determining what the monthly plan payment will be. Line 58 multiplied by 60 will give you the amount needed to be paid to the unsecured creditors when calculating the plan.Another, possibly bigger...