December 16, 2017

Attorneys Who Don’t Understand Bankruptcy’s Means Test: A Case Study

I was recently consulted by a highly-paid professional.  He was quite distraught over his financial plight that included debts of over $1,000,000.  He had consulted another attorney who had indicated to him that he was going to have difficulty filing a Chapter 7 bankruptcy case because of the amount of his income. He was at his wits end. I analyzed his situation. Two ways the Bankruptcy Code … [Read more...]

The Bankruptcy Means Test: Don’t Make Assumptions

Virtually everyone who is considering bankruptcy goes online to get information regarding the bankruptcy process.  These folks will almost certainly encounter the “means test." This is a part of the bankruptcy law that makes it harder to file a Chapter 7, liquidating bankruptcy. The means test purportedly exists to stop people from abusing the bankruptcy law by filing Chapter 7 cases when they … [Read more...]

What does it Cost to File for Bankruptcy Protection?

Yes, it costs money to file for bankruptcy protection. This post covers court costs and legal fees related to Chapter 7, Chapter 13 and Chapter 11 bankruptcy cases. Too often, I counsel folks who qualify for bankruptcy protection who’ve been spending their money trying to avoid filing. They spend it on so-called debt relief programs; they spend it trying to keep their home out of foreclosure, … [Read more...]