Cross-Collateralization Issue in Bankruptcy

by Ed Williams on September 15, 2012

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Due to the decline in incomes of families living in 25 states and the District Of Columbia, the income limit used for the “first cut” Bankruptcy Means Test is being reduced for filers living in those states, effective, November 1, 2009.  For example, inFlorida, the new limits are reduced by $1,242 for a single earner and by $2,115 for a family of four.

The Chapter 7 income limit is the income, below which, bankruptcy filers pass the all important Means Test.  While passing this test does not guarantee a discharge of debts, it is the first test qualifying a debtor to petition the bankruptcy court for discharge.

The income limit is set at a different level in each state and is based on the median income level in the state in which the debtor resides and the number of family members.

The following link will take you to the official U.S. Justice Department web listing of the new income limits.

http://www.justice.gov/ust/eo/bapcpa/20091101/bci_data/median_income_table.htm

At The Beach Paralegal Services does not provide legal advice.  We work only under the supervision of licensed attorneys.  This blog is only for informational purposes and does not construe legal advice.  Please consult your attorney directly for all legal advice in this or any other bankruptcy matter.

At The Beach Paralegal Services provides bankruptcy attorneys expert and cost effective petition preparation and court filing assistance.  Visit us on the web to learn how we save our attorneys time and money.

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