New Bankruptcy Guideline Figures
The United States Department of Justice has released new Median Income Figures. This is the sixth time since the adoption of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that the figures have been adjusted.
2 Persons - $50,628
3 Persons - $63,491
4 Persons - $76,182
2 Persons - $49,226
3 Persons - $61,733
4 persons - $74,072
Two Upcoming Bankruptcy Podcasts on The Making Law Easy Show
On February 1st, come tune into two shows which can answer your questions on bankruptcy filings if you are an individual and not a business entity. To access these shows beginning at 1PM, you simply call 724-444-7444 and dial 64441 when prompted for a show ID. If you can’t listen to them live, you can always visit our website at any time after 2Pm on Friday and listen to the shows on your schedule.
At 1PM in Episode 22 of the Making Law Easy Show, we will cover the ins and outs of a Chapter 7 Bankruptcy Filing. If you have fallen behind in your debt payments and can’t catch up or maybe you can not make your mortgage payments, then a Chapter 7 Bankruptcy filing might make sense for you. A Chapter 7 Bankruptcy filing acts to wipe clean many of your debt obligations. However, there are requirements you must meet before you can qualify to file in Chapter 7. Listen to an experienced bankruptcy attorney who works with 1-2-3 Law Group explain the rules for Chapter 7 to decide if it makes sense for you to consider.
Immediately following this show (at 1:45 PM), we will cover the ins and outs of a Chapter 13 Bankruptcy Filing in Episode 23 of The Making Law Easy Show. If you make too much income or have too many assets to qualify for a Chapter 7 Bankruptcy filing, then a payment plan under Bankruptcy Chapter 13 might make sense for you to buy some time to get your financial house in order. Listen to an experienced bankruptcy attorney who works with the 1-2-3 Law Group describe the ins and outs of Chapter 13 Bankruptcy filings.
1-2-3 Law Group at MakingLawEasy.com
Updated Bankruptcy Standards For Necessary Expenses, Housing and Utility Expenses
Most individual debtors filing for bankruptcy relief are required to complete either Official Bankruptcy Form 22A or 22C (Statement of Current Monthly Income and calculations). Bankruptcy Form 22A is the form chapter 7 debtors will complete for “means testing” purposes; Form 22C is the form chapter 13 debtors will complete. [The Official Bankruptcy Forms can be found on the Administrative Office of the U.S. Courts Web site.]
A debtor must enter income and expense information onto the appropriate form (i.e., Form 22A or Form 22C)and then make calculations using the information entered. Some of the information needed to complete these forms, such as a debtor’s current monthly income, comes from the debtor’s own personal records. However, other information needed to complete the forms comes from the Census Bureau and the Internal Revenue Service (IRS). Some of the allowable expense items required on Form 22A and Form 22C have been revised.
Effective January 1, 2008, there are new National Standards for five necessary expenses: food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous. Those updated standards can be found on the Internal Revenue Service’s website.
Possible Changes to Bankruptcy Rules Involving Mortgages
According to www.mortgagenewsdaily.com “the u.s. house judiciary [committee] signed off on [11/12/07] on a bill designed to help certain bankrupt homeowners stay in those homes. The highly controversial bill, which faces significant bi-partisan opposition on the floor, is yet another piece in a crazy-quilt of government and mortgage industry attempts to curtail rising foreclosures and stem the collapse of lending and lenders.
The bill, a substitute version of the Miller-Sanchez “emergency homeownership and mortgage equity protection act of 2007″ allows bankruptcy courts to change the terms of some existing mortgages to the benefit of the homeowner.
Check out the ongoing and updated dialogue on this topic in our bankruptcy Public Forum page.