Hormiguero_IHB
New member
Means Testing
The most controversial reform in the Bankruptcy Code lies in the creation of a ?means test? for eligibility to file under Chapter 7. The Act requires a comparison of the debtor?s income to the median income in the individual?s domiciled state. If the debtor?s income is above the median and he is able to pay at least a minimal amount per month to creditors, he is now barred from Chapter 7 filing and must be so informed by any ?debt relief agency? or legal counsel he has retained.
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http://www.nysscpa.org/cpajournal/2006/1106/essentials/p36.htm
I thought it might be time to revisit this interesting piece of the legacy of the DeLay Congress.
The most controversial reform in the Bankruptcy Code lies in the creation of a ?means test? for eligibility to file under Chapter 7. The Act requires a comparison of the debtor?s income to the median income in the individual?s domiciled state. If the debtor?s income is above the median and he is able to pay at least a minimal amount per month to creditors, he is now barred from Chapter 7 filing and must be so informed by any ?debt relief agency? or legal counsel he has retained.
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http://www.nysscpa.org/cpajournal/2006/1106/essentials/p36.htm
I thought it might be time to revisit this interesting piece of the legacy of the DeLay Congress.