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Bankruptcy Lawyer in Chicago
Unlike Chapter 13 bankruptcy , which is available to everyone, you must be eligible to file under Chapter 7 of the U.S. Bankruptcy Code. Since this process eliminates most, if not all, of your debt in a very short period of time, certain measures have been taken to limit the amount of people that qualify. In fact, this form of bankruptcy has been strictly reserved for those who truly cannot repay ...
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Posted By
Dave Johnsen
One of the driving thrusts behind the 2005 Bankruptcy Reform laws (known as BAPCPA) was an effort to make it more "difficult" to file for Chapter 7 bankruptcy. There were several reasons and rationales behind this, not the least of which were credit card lobbying efforts, but the end result was the desired result: it has become more difficult to file for Chapter 7 bankruptcy because of income ...
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Posted By
Dave Johnsen
With the advent of the income median level and the means test, debtors who previously might have been able to file a Chapter 7 bankruptcy have been forced to file Chapter 13. These debtors most often fulfill their bankruptcy case en route to a successful discharge. And yet there are those, along with those who needed to file Chapter 13 anyways, who encounter situations during their active Chapter ...
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Posted By
Chicago Bankruptcy Lawyer
On a fundamental level, the 341 Meeting of Creditors is the same regardless of chapter. The meeting presents an opportunity for creditors to be present while the debtor or debtors is being examined under oath by the trustee administering the case. Most of the time, creditors do not show. In Chapter 7 341 Meetings, the meeting is driven by the trustee's examination of the debtor to determine ...
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Posted By
Chicago Bankruptcy Lawyer
One question that is asked, at nearly every single 341 Meeting of Creditors, is whether the debtor has reviewed the bankruptcy information sheet. This document, included in the bankruptcy petition, in large part explains some of the differences between the various chapters of the bankruptcy code. It briefly mentions what a Chapter 11 is (large-scale reorganization) and a Chapter 12 (bankruptcy for ...
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Posted By
Dave Johnsen
The means test is the requirement under the 2005 Bankruptcy Code Amendments that individual debtors fill out to determine if they qualify for a Chapter 7 bankruptcy. Under this form of the bankruptcy petition, an individual debtor enters their income against their own and standard IRS deductions to project an average monthly income that determines if they qualify. Normally, most individual debtors ...
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Posted By
Dave Johnsen
In 2005, the US Bankruptcy Code was amended to incorporate a means test. The design of the means test is to establish a way to ensure that those who can afford to pay back a portion of their debt are ineligible to file a Chapter 7 bankruptcy. The means test is a complex mathematical process that determines basic eligibility based upon income. The test involves taking the debtor's current monthly ...
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