Can I not convert to 7 and overcome the excess liability challenge which makes me fail the means test?
A: The "means test" is based upon income, not assets. If your current monthly income, averaged over the past six months and then multiplied by 12 is less than the state median for your family size, then you can convert to a Chapter 7. The best way to discover your ability to satisfy the test is to take it. See this link.
Would the court not recognize my disability and insolvency. I am 61 and medically disabled from prostate cancer. chapter 7 would give me a fresh start
A: The facts of your physical condition could be used to rebut the presumption that your Chapter 7 means test income is an abuse of the bankruptcy code
. So, yes, I think this works in your favor.At the house foreclosure the bank bought it for 500k . The bank's personal appraiser March 11 appraised at 500K. However in March 2010 the property was assessed at 2.1 million by a very reputable commercial appraiser. This left the deficit from the foreclosure at 1.1 mill. Could my attorney argue in a conversion that the bank undervalued the property and that my foreclosure deficit be less. Perhaps it would mean the means test.
A: As already mentioned, your assets are irrelevant. Income is what matters for means test purposes.
In a conversion, does the same chapter 7 means test apply in you are converting from 11 . I understand 90% of 11filings are eventually converted to 7.
A: The actual requirement is an absence of bad faith. But part of that is satisfying the means test or showing why the debtor's additional income is not an abuse of the bankruptcy code. For you, the answer is that your disability makes your maintaining past income extremely unlikely -- or that's the operative argument.
Hope this helps.
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