Category Archives: Means Test

Debtors with primarily business debts may still need to provide evidence of income to bankruptcy trustees

Bankruptcy cases often resemble ticker tape parades: lots of paper flying in all directions. Debtors with primarily business debts — that is, more than 50% of their debt total is from a failed or failing business — get a break when they file for Chapter 7 bankruptcy: they can skip the means test, meaning they […]

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September — the best time for teachers to file for bankruptcy

Teaching — a good paying government job with lots of benefits, time off, and job security, right? Why would a teacher need to file for bankruptcy? Sure, and there’s no stress, too! Right . . . The fact is teachers file bankruptcy cases at about the same rate as the general population, for myriad reasons […]

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Should you file for bankruptcy while you are unemployed?

If you have lost your job and are collecting unemployment, is this a good time to file a bankruptcy case to eliminate the debts? A long time ago when I was starting as a lawyer, it was unusual to see unemployed folks filing cases. It costs some money to file, of course, and that money […]

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File Chapter 7 bankruptcy and skip the means test!

There is a simple way to avoid filling out the means test when you are filing a Chapter 7 bankruptcy case. If a debtor has primarily business debts, there is no need to complete the means test! Or, to put it in more precise bankruptcy language, if a debtor has “primarily non-consumer debts,” just check […]

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Chapter 7 bankruptcy eligibility in New Hampshire

Starting with cases filed in May 2012, the Chapter 7 “means test” eligibility figures have changed slightly for residents of New Hampshire considering bankruptcy. The new thresholds for annual family income are: Family size = 1, threshold is now $53,177; Family size = 2, threshold is now $63,626; Family size = 3, threshold is now […]

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Chapter 7 eligibility changes for Massachusetts residents

Starting with cases filed in May 2012, the Chapter 7 “means test” eligibility figures have changed slightly for residents of Massachusetts considering bankruptcy. The new thresholds for annual family income are: Family size = 1, threshold is now $55,185; Family size = 2, threshold is now $66,200; Family size = 3, threshold is now $82,873; […]

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