Why You Might Still Qualify for Chapter 7 Bankruptcy STOPPED BY THE PRESUMPTION OF ABUSE?
“Can I file for Chapter 7 bankruptcy?”
Today, in order to qualify for Chapter 7 bankruptcy, a debtor must submit their household’s gross income so it can be compared to the average income of a family of the same size. If the debtor’s income is higher than the mean income, is it presumed they should be able to repay their debts. Therefore, receiving a discharge under Chapter 7 of the Bankruptcy Code would be considered abusive, and they should instead file for Chapter 13.
If your financial situation becomes so overwhelming that bankruptcy is your only course of action, the next step is to determine which type of bankruptcy you can file. Under Chapter 13 bankruptcy, debtors are required to pay off a portion of their debts for three to five years before they receive a discharge. Meanwhile, Chapter 7 bankruptcy offers to discharge debts in just a few months, without any payment demands. While there are certain debts like taxes, student loans, alimony, or child support that will not be discharged, given the choice, most debtors would prefer to file for Chapter 7. For this reason, Congress began to fear too many people were abusing Chapter 7, using it to wipe away debts they could have otherwise paid. In 2005, the laws around Chapter 7 bankruptcy were changed to include a “means test.”
However, the means test is only a surface analysis and does not tell the whole story of a debtor’s financial crisis. Debtors can overcome presumption of abuse by proving their disposable income will not allow creditors to receive a meaningful payout under Chapter 13. This will require filing further paperwork and further analyzing the details of your financial situation to identify any special circumstances
or additional expenses that were not accounted for in the original means test.
Challenging a presumption of abuse result can be a daunting task, but you don’t have to face it alone. With the help of an experienced bankruptcy attorney, you can take a closer look at your financial situation and determine if Chapter 7 bankruptcy is the right option for you.
ROASTED PARMESAN PESTO POTATOES Recipe of the Month:
Bible Verse And let us consider how we may spur one another on toward love and good deeds, not giving up meeting together, as some are in the habit of doing, but encouraging one another — and all the more as you see the Day approaching. Hebrews 10:24-25 Enter his gates with thanksgiving and his courts with praise; give thanks to him
It only takes 3 ingredients to make these crispy, flavorful potatoes. They’re the perfect side dish for any meal.
Ingredients • 2 pounds red potatoes, quartered
• 3 tablespoons grated fresh Parmesan cheese
• 2 tablespoons basil pesto • Salt and pepper, to taste
Instructions 1. Preheat oven to 400 F. 2. In large bowl, combine potatoes and pesto. Toss to coat. Transfer potatoes to large baking sheet or shallow roasting pan. Season with salt and pepper, to taste. Roast 20 minutes and remove from oven.
3. Sprinkle Parmesan cheese evenly over potatoes and put pan back in the oven. Roast for additional 10–15 minutes or until potatoes are tender and crispy. Remove from oven and serve warm. Recipe courtesy of TwoPeasAndTheirPod.com.
and praise his name. Psalm 100:4
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