San Jose Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney explains unemployment and the bankruptcy means test.

The means test can make a difference in whether or not you are able to get your finances in order. There are many things people would not consider being involved in a traditional means test. You have to keep track of things like traditional Social Security income and Social Security disability payments as well. Many taxpayers out there are sometimes worried that the means test, on an unemployment basis in particular, may not be fierce enough. There are other people out there who simply do not think it is easy enough for a traditional worker to file bankruptcy.

Different states have different unemployment and bankruptcy means tests. Some states do hire private contractors to deal with issues in their bankruptcy court and within their unemployment offices. Many state unemployment offices work with private career services firms in order to find jobs for people who need them. The creation of new jobs while working with an unemployment office is something that can create a fair amount of new revenue for states and local governments. This is something that happens to be positive in comparison to a bankruptcy.

We can answer all your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. If you need help regarding a bankruptcy in San Jose, call us at 408.279.2288 or 1800.941.6730 and we will be more than happy to offer you a free consultation over the phone. You can also fill out a free online evaluation at our website, www.sagarialaw.com, or request a free face to face appointment at a Sagaria Law office location close to you. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution needs.

A San Jose bankruptcy attorney explains how the Means Test affects bankruptcy proceedings.

Courts have long tried to prevent fraudulent bankuptcy filings. One method used to eliminate bankruptcy fraud is the bankruptcy means test. The test is a check of income against debts used by the court to determine if the filer is able to repay the debt, or if the debt should be forgiven entirely.

The income check is often complicated and uses the income from the previous six months. Some income such as social security income, is usually not included. This income is then compared to the state median income. If the income is above the median, then further testing is used. Otherwise, the filer is considered to have passed the means test and is able to file Chapter 7 bankruptcy.

In the event the income is above the median, then the income is compared with expenses. Should income exceed expenses, the court may determine the filer ineligible for Chapter 7 bankruptcy. In high expense areas such as San Francisco, it is easy to be about the state median but still pass the test. Through the use of a means test, bankruptcy fraud is reduced while still protecting those truly in need of bankruptcy debt relief.

At Sagaria Law, we offer an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting San Jose. If you need help regarding bankruptcy in San Jose, contact us at 408.279.2288 or 1800.941.6730 for a free consultation or visit us online at www.sagarialaw.com to request a free in person appointment at a Sagaria Law office location nearest you. We can answer your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. We have bankruptcy attorneys located throughout California and Oregon to assist you with all your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation to quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose!

A San Jose bankrutpcy attorney tells Bay Area consumers:

Where Can I Find a Means Test Calculator?

The most common place to find a means test calculator would be to search online. The courts do not provide a standard means test calculator, but many websites state they provide an accurate means test calculator. A means test calculator would take into account the size of a person’s home, the amount gross income, the amount of taxes and other necessary deductions, cars, and numerous other items and options. It is hard for a means test calculator to accurately predict or prepare a debtor for the means test, thus it is best to seek legal counsel.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney on the Means Test

In 2005 a new bankruptcy law came into effect requiring a Means Test in order to determine a debtor's eligibility to file either a Chapter 7 or a Chapter 13 bankruptcy. As part of the assessment that happens during the Means Test, the debtor's income for the last 6 months is given an average, than compared to the median average income of the state. If the debtor's income is above the state median and their qualified deductions will not reduce their income any further, they typcically may file for Chapter 13 bankrutpcy. If the debtor's average income is below the state median, they typically are eligible to file Chapter 7 bankruptcy, a.k.a. the Fresh Start. To learn more about which bankruptcy may be right for you, and more about the Means Test, you may want to contact an experienced bankruptcy attorney.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankruptcy attorney comments on the Means Test And Chapter 7

The 2005 changes and amendments to Section 11 of the United States Code (U.S.C.), the Section that deals with bankruptcy, were designed to prevent alleged abuse of bankruptcy and to require that debtors pay for those debts which they knowingly incurred. The legislation made it much more difficult for the average American to file for, and eliminate, their debt. It appears that the legislators want to a make Chapter 7 bankruptcy discharge tougher to obtain and push debtors into a Chapter 13 repayment plan.

One of the major changes/additions in the 2005 legislation was creating the “means test.” This test is a two part test which takes into account the disposable income a debtor brings in after his/her living expenses are taken into account. Obviously, those who are deemed to have too much monthly excess income will not be allowed a Chapter 7 discharge and will be forced to either file under Chapter 13, or not file at all. Under the old laws, judges and trustees had more discretion in their decisions and could judge each case by its own unique circumstances.

A formula was devised which exempted “survival” expenses, such as food and mortgage, and looked at the excess income. Should said monthly income exceed twenty-five percent (25%) of their unsecured nonpriority debt (mainly credit and department store cards, medical bills, and personal loans), the debtor may not file for Chapter 7 bankruptcy. The second part of the test measures the debtor’s income to the state’s median income and if the debtor’s families combined gross income is greater than the median income for that state, the debtor may need to file for Chapter 13 bankruptcy.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!

A San Jose bankrutpcy attorney explains the Means Test in bankruptcy...

In 2005, the United States Bankruptcy Code was re-written. One of the major changes was the inclusion of the bankruptcy means test. The bankruptcy means test is a formula used to determine whether or not the debtor has enough disposable income at the end of the month to repay his or her creditors. The bankruptcy means test is primarily used as a tool to deter fraudulent filings and help the Trustee recognize abusive filings.

The bankruptcy means test is a formula devised which exempted “survival” expenses, such as food and mortgage, and looked at the excess income. Should said monthly income exceed twenty-five percent (25%) of their unsecured nonpriority debt (mainly credit and department store cards, medical bills, and personal loans), the debtor may not file for Chapter 7 bankruptcy. The second part of the test measures the debtor’s income to the state’s median income and if the debtor’s families combined gross income is greater than the median income for that state, the debtor may need to file for Chapter 13 bankruptcy.

If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!