I. Our blog report from February 3, 2014 (What is the Bankruptcy "Means Test") explained the bankruptcy means test.
A. In November, the income limits or ceilings for the “short form” means test changed.
B. Overall, these changes are good news for the potential bankruptcy filer, compared to the November 2013 income limits.
1. The annual income limit for a single individual is now $42,446 (one year ago it was $41,866).
2. For a couple, the new limit is $60,389.
3. The family of three income limit increased significantly, to $65,804.
4. The limits for families of four or more all went up about $3,800, per year.
II. What does this mean for the potential bankruptcy filer?
A. It is easier to qualify for a Chapter 7 Bankruptcy by “passing” the short form means test than a year ago.
1. Individuals can make more money and still qualify for the less expensive Chapter 7.
B. There weren’t any major changes to the “long form” means test, but the higher annual income limits should make it easier for higher income filers to claw their way into a Chapter 7.
C. The new numbers will likely lend to less expensive and shorter Chapter 13 payment plans for those still needing to file a Chapter 13 Bankruptcy.
D. If you thought the old means test limits prevented you from filing a Chapter 7 Bankruptcy, please contact the Steffens Law Office to review your specific situation.