Bankruptcy is a legal proceeding in federal court that allows individuals who cannot pay their debts to address the claims of their creditors. Bankruptcy is governed by federal law, and all cases take place within the federal bankruptcy courts. Upon… Continue Reading
Chapter 7 bankruptcy requires that the bankruptcy filer complete a means test. The means test is basically a formula for calculating disposable income. Debtors list all income received during the six months prior to filing bankruptcy, excluding funds paid by… Continue Reading
Disposable income affects bankruptcy cases in two ways. First, it affects eligibility for a discharge in Chapter 7 bankruptcy cases. Disposable income is calculated using a means test. The means test uses the average income for the last six months,… Continue Reading
Lots of people have rental property. Some people purchase a house but then have to move and cannot sell it, so rather than let it be foreclosed or sit vacant, they become landlords. Others purchase a house intending to rent… Continue Reading
Chapter 7 bankruptcy cases begin when a petition is filed. Debtors must also file schedules and statements either with the petition or soon after. Approximately a week to ten days after the petition is filed the court will send notice… Continue Reading