Michigan Bankruptcy Blog

New Michigan Bankruptcy Means Test Numbers for April 1, 2014

New Michigan Bankruptcy Means Test Numbers for April 1, 2014

Increased Michigan Median Income Numbers = Increased Chapter 7 Eligibility Challenges The Office of the US Trustee has released its new bankruptcy means test numbers for all case filed on or after April 1, 2014. These numbers reflect the median incomes for households of various sizes in each state. For Michigan, the median income averages have increased slightly from the past numbers issued November 1, 2013. What Do Increased Median Household Income Averages Mean? These numbers are derived from ...

Posted on March 21st, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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What Is Income for Bankruptcy Means Test Purposes?

All Earnings Other than Social Security Income or Disability Benefit—in Michigan Most Recent 6 Months: The Means Test "Look-Back" Period The "means test" is the mathematical formula used in bankruptcy to determine your eligibility for filing a Chapter 7 bankruptcy and to determine in a Chapter 13 bankruptcy whether you are eligible to propose a 36-month payment plan or must propose a longer payment plan, and whether there is any minimum amount of money your unsecured creditors ...

Posted on October 25th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Can I Lower Wages to Pass the Means Test in Bankruptcy?

Self-Employed Debtors and Good Faith Bankruptcy Filing Self-employed or business-owning prospective clients will occasionally ask whether they might lower wages to pass the means test qualifying them for a Chapter 7 bankruptcy. That is, they are curious as to whether they can, since the means calculates income and Chapter 7 eligibility based upon a specific 6-month period of time, simply pay themselves less money for 6 months in order to slide through the test. The question they ...

Posted on June 10th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Do I Have to Include my Annual Bonus in the Chapter 7 Means Test?

An Annual Bonus in the Chapter  7 Means Test Is "Income" All income other than for Social Security age or disability benefit earned in the 6 months prior to the month in which a Chapter 7 or 13 bankruptcy is filed must be reported and calculated in the "means test" which is the barometer for eligibility of a debtor for a Chapter 7 bankruptcy. An annual bonus in the Chapter 7 means test is "income" just like any regular ...

Posted on June 6th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Michigan Unemployment Benefits and Bankruptcy

Michigan Unemployment Benefits and Bankruptcy: Asset and Income In Chapter 7 or Chapter 13 bankruptcy, Michigan unemployment benefits are both income that must be considered in calcuating the "means test" that is the barometer both for Chapter 7 eligbility and for determining the necessary length of a Chapter 13 payment plan and, in terms of being a right to be paid, an asset that must be listed and exempted (protected) along with the rest of your ...

Posted on December 3rd, 2012 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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