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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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what does it mean in the bankruptcy mean test if your 60 month

This answer was rated:

what does it mean in the bankruptcy mean test if your 60 month disposable income is greater than your threshold debt payment, are you eligible to file for chapter 7 bankruptcy?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

The “Means Test” is an extremely complex test consisting of 6 pages of calculations! In its simplest form you take your gross monthly income and subtract certain expenses based on the IRS National Standards, Local Standards and other actual expenses to calculate your Monthly Disposable Income. The Monthly Disposable Income is multiplied by 60 and if that amount is less than $6,000 you can file for chapter 7 bankruptcy (liquidation of debts). If that amount is at least $6,000 but not more than $10,000 then you must perform yet another calculation. You must multiply their non-priority unsecured debt (generally credit card debt) and multiply that amount by 25% (the Threshold Debt Payment Amount). If your 60 Month Disposable Income is less than your Threshold Debt Payment Amount then you may file for chapter 7 bankruptcy

WALLSTREETESQ :

How large is your household, and what is your household income?

Customer:

there are 3 of us but my son is a 29 yr old unemployed college student. my monthly income is 5400, 1100 of which is child support for my 14 year old daughter.

WALLSTREETESQ :

Under the KY law $53, 496 is your state mean for a household of three,

Customer:

my income is 64,800 but I have 88000 in private student loans and 55000 in federal student loans to pay .Will that help me any?

WALLSTREETESQ :

you will have to use the means test and deduct these expenses, you may qualify for a chapter 7 even if your income is higher then the required amount.

Customer:

okay thank you.

WALLSTREETESQ :

If your 60 Month Disposable Income is less than your Threshold Debt Payment Amount then you may file for chapter 7 bankruptcy

WALLSTREETESQ :

If you do not qualify after the means test, and have included your child support payments and student loans, you can convert to a chapter 13, and end up paying $100 or less per month over a 5 year payment plan for all the debts as well, that will reduce the debt significantly as well.

Customer:

it is if I can count the student loans

WALLSTREETESQ :

you need to put in all your expenses.

Customer:

ok it sounds like I might be able to file chapter 7. thank you you've been great!

WALLSTREETESQ :

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