Michigan Bankruptcy Blog

Can I Make Charitable Contributions or Tithe in Bankruptcy?

Can I Make Charitable Contributions or Tithe in Bankruptcy?

Charitable Giving & Tithing: Protected Expenses in Bankruptcy Charitable contributions and tithing in particular are protected activities under the US Bankruptcy Code. In 2006, Congress enacted the Religious Liberty and Charitable Donation Clarification Act of 2006, which made clear that monthly average amounts of religious charitable contributions and tithing amounts in particular are not included in "net available income" in  bankruptcy. What that means, in essence, is that you are able to continue making regular charitable contributions, ...

Posted on July 10th, 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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Business Debt and the Chapter 7 Means Test

Business Debt in Chapter 7 Bankruptcy: Consumer vs. Non-Consumer Chapter 7 Non-Consumer Chapter 7 Bankruptcy Cases: No Means Test Required! There are some significant advantages in Chapter 7 Bankruptcy to having "mostly" business or non-consumer debt. Chief among them is the waiving of the requirement of passing the Chapter 7 Means Test for Chapter 7 eligibility. The Means Test is the eligibility standard for Chapter 7 bankruptcy for consumer cases—and consumer cases alone. What the Means Test does is ...

Posted on May 13th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Can You File Bankruptcy Without Your Spouse?

Can You File Bankruptcy Without Your Spouse? Yes!   You may file bankruptcy without your spouse regardless of whether your are pursuing a Chapter 7 or a Chapter 13 bankruptcy. That a married couple must file bankruptcy jointly is one of the Bankruptcy Myths addressed here. It is a common misconception of prospective clients who sit down with The Hilla Law Firm, PLLC to explore their options in bankruptcy that this is the case—but a misconception it ...

Posted on January 16th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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What Is the Means Test and How Does it Work in Chapter 7 and Chapter 13 Bankruptcy?

The Means Test: Chapter 7 vs. Chapter 13 Bankruptcy Effects The so-called bankruptcy "Means Test " is widely known as the standard or test for eligiblity in Chapter 7 bankruptcy, but it also governs the amount that must be paid on a monthly basis in a Chapter 13 bankruptcy payment plan, as well as the length of time for which payments must be made in a Chapter 13. The Means Test & Michigan Chapter 7 Bankruptcy The Means ...

Posted on December 7th, 2012 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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