Tag Archive for: disposable income

Forensic Accounting

Divorce is never a pleasant process – it involves a lot of emotion and a struggle to reach compromises. Many times, these heightened emotions and an increased stress level can lead to disagreements and mistrust when it comes to the family’s finances. Often times during a divorce process, there is a spouse who is less-aware […]

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How can filing Chapter 7 bankruptcy affect your business?

When a Chapter 7 bankruptcy is filed, an immediate hold goes on any collection activities by your creditors. In a personal bankruptcy, all dischargeable debts go away and the debtor is no longer responsible for paying the debt. A trustee sells of any non-exempt assets and pays creditors in order of their priority. For a […]

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Valuation Services: How much do you actually have?

When an individual files bankruptcy, there is often a dispute between the debtor and his creditors as to how much money the debtor actually has available to pay off his obligations. In these situations, a bankruptcy court (or the individual debtor) may implement a valuation service to determine the worth of assets from an objective […]

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The Means Test

What is the Means Test? The means test is a six months average of the Debtor’s and spouse’s income, if applicable, divided by six and then multiplied by twelve to compute a hypothetical income over a year.  That income will be used to determine whether there is a presumption of abuse when filing a Chapter 7.  […]

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Reasonable and Necessary Expenses in a Bankruptcy

Why a court looks at a debtor’s expenses. Two things that a bankruptcy court looks for in a bankruptcy petition are a debtor’s income and expenses. This is important because in order to file a Chapter 7 the debtor must make less than a determined amount for his/or her family size or be unable to pay a minimum […]

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