Tag Archives: means test

Michigan Means Test Median Income Numbers Updated!

The Michigan means test median household income numbers were updated again on March 15, 2011. Unlike the prior update on 11/1/2010, the numbers rose this time, so this is good news for “on-the-edge” potential Chapter 7 filers whose household incomes may have been hovering on the edge.

The new numbers are:

  • Household of 1 Person:     $42,562
  • Household of 2 Persons:   $50,738
  • Household of 3 Persons:   $60,161
  • Household of 4 Persons:   $71,758

Not a huge bump, just around $1,000 or so per household, but every little bit can often make the difference in determining whether someone is elgible for a Chapter 7 or must file a Chapter 13 instead.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

Should I Buy a New Car before Filing for Bankruptcy?

You may not be advised by your Michigan bankruptcy attorney to buy a new car prior to filing for bankruptcy depending upon whether you actually need a new car, the other assets and property that you own, and whether you are filing a Chapter 7 or Chapter 13 bankruptcy.

To read more about car purchases prior to filing Chapter 7 or Chapter 13 bankruptcy, click here to read our full post on this topic on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

What Is a Chapter 13 Bankruptcy Plan?

What is the Chapter 13 Plan itself? Very simply, it is list of debts to be paid in a certain order, according to a certain timeline, and, in the case of the unsecured creditors at the bottom of the priority order, to a certain percentage of what was originally owed to them—anywhere from 0% to 100%.

The priority order of debts to be paid is fixed by the Bankruptcy Code:

  1. “Administrative” Costs: These are the Trustee’s percentage earned of the total paid into the plan by the debtor (currently around 8% in the Eastern District of Michigan), as well as the balance of Attorney’s fees not paid prior to filing. Unlike in a Chapter 7 bankruptcy, the majority of Attorney’s fees are paid through the Plan rather than up-front, and these fees are highly scrutinized by the Bankruptcy Court.
  2. “Secured” Debts, such as home loans and car loans, come next.
  3. Continue reading

What Are the New Median Income Numbers for Michigan Bankruptcy Filers?

The poor economy in Michigan has, as of November 1, 2010, forced the median income numbers down again, making it that much more difficult for prospective Chapter 7 Bankruptcy filers to pass the “means test” for Chapter 7 eligibility.

As of November 1, 2010, the new median household income figures for the State of Michigan are:

  • For a household of 1, $41,875 per year.
  • For a household of 2, $49,919 per year.
  • For a household of 3, $59,190 per year.
  • For a household of 4, $70,600 per year.
  • For households over 4 persons, $70,600 + $7,500 for each additional person over 4.

Continue reading

If I Am Filing for Bankruptcy but My Spouse Is Not, Do I Need to Provide His or Her Income Information?

It is perfectly feasible for a married individual to file Chapter 7 or Chapter 13 bankruptcy without his or her spouse doing the same thing.

However, there are points at which your non-filing spouse will be required to participate in your bankruptcy filing.

To read more on this topic, click here to read our full article on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

What Is The Means Test and How Does It Work in Chapter 7 Bankruptcy?

The Means Test is both the test for Chapter 7 bankruptcy eligibility and the means of determining whether you may file a 36 or 60-month Chapter 13 bankruptcy payment plan and potentially governing the amount of your monthly Chapter 13 plan payment.

To read more about the Means Test, click here to read our full article on the Means Test in Michigan Chapter 7 and Chapter 13 bankruptcy on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.