Michigan Bankruptcy Blog

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

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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