My question involves bankruptcy in the state of: KY
It seems there is misinformation everywhere about the means test, and no one can give a definite yes or no. Just so you know I have been visiting many bankruptcy lawyer's websites and almost all of them state "if you earn below your state's median income you do not have to take the means test".
Then everywhere else I go I am told you have to take it so that the trustee will know if you can pay back at least 25% of your debt over a certain amount of months which will be a presumption of abuse.
The conclusion is that no one really knows if it's mandatory or not? I could see a bankruptcy lawyer advertising that the means test is not required, to attract more clients, and I can see a collection attorney posing as a "bankruptcy attorney" try to dissuade you.
I have searched and searched and this is the one issue that NO ONE seems to really know.
Is the means test still mandatory if you make below your state's median income?
A direct quote from nolo:
The first step is simple: If your current monthly income is less than the median income for a household of your size in your state, you pass. You're done. You do not need to complete the rest of the means test. You can file for Chapter 7.
Another quote from chapter7.com:
http://ift.tt/2yFh7S3
If your monthly income is at or below the median income level, the means test is over—there typically is no presumption of abuse and you can file your Chapter 7 bankruptcy petition.
Ok good. Question answered. or is it???
Then there this quote from a bankruptcy attorney:
https://www.bayerwishmanbankruptcyla...e-part-1-of-2/
Debtors who have a below average income are subject to an abuse dismissal standard similar to what has been used traditionally. That is, the court will examine the debtor’s income and living expenses to see if the debtor could actually afford to pay all or a substantial portion of their debt over a reasonable period of time. In addition, the court shall consider if the bankruptcy case was filed in “bad faith” and also consider if the “totality of the circumstances of the debtor’s financial situation demonstrates abuse.”
It seems there is misinformation everywhere about the means test, and no one can give a definite yes or no. Just so you know I have been visiting many bankruptcy lawyer's websites and almost all of them state "if you earn below your state's median income you do not have to take the means test".
Then everywhere else I go I am told you have to take it so that the trustee will know if you can pay back at least 25% of your debt over a certain amount of months which will be a presumption of abuse.
The conclusion is that no one really knows if it's mandatory or not? I could see a bankruptcy lawyer advertising that the means test is not required, to attract more clients, and I can see a collection attorney posing as a "bankruptcy attorney" try to dissuade you.
I have searched and searched and this is the one issue that NO ONE seems to really know.
Is the means test still mandatory if you make below your state's median income?
A direct quote from nolo:
Quote:
The first step is simple: If your current monthly income is less than the median income for a household of your size in your state, you pass. You're done. You do not need to complete the rest of the means test. You can file for Chapter 7.
http://ift.tt/2yFh7S3
Quote:
If your monthly income is at or below the median income level, the means test is over—there typically is no presumption of abuse and you can file your Chapter 7 bankruptcy petition.
Then there this quote from a bankruptcy attorney:
Quote:
https://www.bayerwishmanbankruptcyla...e-part-1-of-2/
Debtors who have a below average income are subject to an abuse dismissal standard similar to what has been used traditionally. That is, the court will examine the debtor’s income and living expenses to see if the debtor could actually afford to pay all or a substantial portion of their debt over a reasonable period of time. In addition, the court shall consider if the bankruptcy case was filed in “bad faith” and also consider if the “totality of the circumstances of the debtor’s financial situation demonstrates abuse.”
Chapter 7: If You Make Below the Median Income, is the Means Test Still Mandatory?
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