Means Test for Chapter 7 Bankruptcy
Author: Steve
The means test was created to limit the use of Chapter 7 bankruptcy to those who actually do not have income or money to pay their debts. It works by reducing accurate monthly expenditures from your current monthly income, your average income above the six calendar months before you file for bankruptcy, to arrive at your monthly disposable income. If your disposable income is higher, you are more likely not allowed to use Chapter 7 bankruptcy.
Under the new bankruptcy law that went into effect in October of 2005, bankruptcy applicants who wish to file under Chapter 7 should meet certain eligibility requirements based on a "means test." Under the means test, if your current monthly income is less than the median income in your state, you can file for bankruptcy under Chapter 7. The purpose of this is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to repay at least a fraction of your unsecured debts over a five-year repayment period.
Filing bankruptcy allows a person to clear off his debts, prevent foreclosure and stop creditor harassment which is usually in the form of phone calls and letters. It is useful tools for defaulters who need to get their debts eliminated or want some additional time for the repayment of bills and gives them an opportunity to resolve the problems in hand. Filing bankruptcy has helped millions of people to get out of their debts but a quick or uneducated decision can cause more troubles than already present. Chapter 7 bankruptcy provides an opportunity for instant elimination of all unsecured debts like credit card debt and medical bills. It also gives protection for the filer's property and may be able to stop foreclosure.
When most people think of bankruptcy, they think in terms of Chapter 7, where unsecured debts are normally discharged in full. Bankruptcy of any types is a difficult ordeal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a good start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law.
Take into consideration, that the means test only applies to individual debtors, not business entities, and only if the debt is mostly consumer debt, which is debt incurred by an individual primarily for a personal, family, or household purpose. It does not include business debt or mortgages, nor does it include debt which is incurred non-voluntarily, such as those for taxes or judicial judgments. If most of the debt is not consumer debt, either by number of loans or amount, then the means test is not appropriate. However, if the number and amounts of consumer and non-consumer loans is close, then the court will look at other factors, such as the types and amounts of the loans, and what they were used for. For more information about bankruptcy, you can visit http://www.onlinebkassist.com.
Article Source: http://www.articlesbase.com/finance-articles/means-test-for-chapter-7-bankruptcy-1562024.html
About the Author
Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attorney, go to http://www.onlinebkassist.com
U.S History Can Anybody give me the definitions for these words?
It doesn’t have to be long just a few words. I have some of them finished.
1. manifest destiny
2.push pull forces
3.California Gold Rush
4.Narivist
5.Bonza Farms
6.Gilded Age
7.Populism
8.Dawes Act
9.Credit Mobilier Scandal
10.Whiskey Ring
11.Tammy Hall
12.Boss System
13.Garfield’s Assassination
14.Civil Service Reforms
15.Cayuses of Imperialism
16.Raw materials
17.nationalism
18.Militarism
19.Monroe Doctrine
20.Spanish American War
21.Trade
22.Panama canal
23.Yellow Journalism
24.Women’s Suffrage
25.Regulation of food and drug
26.Initiative
27.Referendum
28.Recall
29.Anit-Trust Reforms
30.Muckrakers
31.Radio
32.Automobile
33.Phonograph
34.Prohibition- Something Prohibited by law
35.Sports Organized Crime
36.”The Perfect 36”- The congress that passed suffrage
37.Economic Collapse of 1929-
38.Overpopulation-
39.Creddit-
40.Speculation (Stock Market)- Buying stock with the anticipation price races
41.Crop Failures-
42.Laisses faire-
43.Harlem Renaissance-
44.Compare: Dubois, Washington, and Garvey-
45.Compare:intervention lists and Isolationists-
46.Treaty of Versailles-
47.Fascism-
48.Failure of League of Nations-
49.Japanese imperialism-
50.Economic World Wide Difficulties-
51.Increase in unemployment-
52.Decrease in price level-
53.incease in business failure-
54.Bankruptcy -
55.Bank Runs- Heavy demands from a bank’s depositors, creditors or customers
56.Totaliarism-
57.Communism- Government being in control
58.Nationalism- Loyalty to Nation
59.Anti Semitism-
60.Hoovervilles-
61.Bonus Army-
62.Migration- To move from one location to another
63.Democratic Victory in 1932-
64.Poverty- Level of personal income below the one classified by Government
65.New Deal Programs-
66.Social Security-
67.WPA-
68.TVA-
69.Indian Reorganization Act-
70.FDIC-
71.CCC-
72.Women in the workforce (WWII)-
73.Military Industrial Complex-
74.Minority employment-
75.G.I. Bill-
76.Rationing-
77.Oak Ridge-
78.Manhatan project-
79.Nuclear proliferation-
80.Ethnical debate (Truman / bomb)-
81.Nagasaki and Hiroshima-
82.capitalism vs. communism-
83.Greneration conflict-
84.Areas threatened by communism in Eastern Europe-
85.Space Race-
86.Containment policy-
87.Korea-
88.Vietnam-
89.Cuba- Fidel Castro
90.East and Western Germany-
91.McCarthyism -
92.Conformity-
93.Highway system-
94.Consumerism-
95.Plessy vs. Ferguson-
96.Brown vs. board of Education-
97.Miranda vs. Arizona- accused has the right to an attorney
98.Gideon vs. Wainwright – suspects ate entitled an attorney
99.Litte Rock Nine-
100.Montgomery bus Boycott-
101.Freedom Rider’s Route-
102.Nashville Lunch Counters-
103.Civil Rights Act of 1946-
104. Great Society-
105.Bay of Pigs-
106.Brinksmanship- Willingness to go to war
107.Cuban Missile Crisis-
108.Cold War-
109.Goldwater’s 1964 party nomination acceptance speech-
110.Jhonson’s Gulf of Tonkin declaration-
111.Kennedy’s acceptance speech-
112.Counterculture (hippies)-
Thanks
Well I won’t tackle all of these but I’ll give you a few.
Cuban Missile Crisis-Most dramaitic point of Cold War, closest point to nuclear war. Cuba was setting up missile silos and the USSR was supplying missiles. Kennedy intervened and eventually Khrushchev backed down. The silos were dismantled, US took missile defenses out of Turkey, Khrushchev lost his post a month later.
Bay of Pigs-The CIA trained and armed Cuban exiles to overthrow Castro. It failed but Kennedy gained approval for taking action against Communism.
Great Society – President Johnson’s social program (sorry I dont remember specific programs).
Plessy v. Ferguson – Established that “seperate but equal” was constitutional. This was overturned later by Brown v. Topeka Board of Education.
McCarthyism – Sen McCarthy (Minn.) claimed he had a list of comunists within the State Department. His downfall came when he claimed the army was filled with communists.
Containment Policy – George Keenan’s policy to contain stop the spread of Communism by containing it.
Failure of League of Nations – I forget part of it but I know a main reason was the absence of US involvement.
Cold War – Post WW3. US and USSR only superpowers after the war. Started off with Stalin’s anger towards the US for taking a long tim eot open up a second fron in WW2 to aid the USSR. Parts of the Cold War was the irrational fear of Communism, the “Red Scare”. Massive arms build-up in both the US and USSR.
Gulf of Tonkin Resolution – Gave Johnson a “blank check” in Vietnam.
Highway System – Interstate Highway Act of 1956 – Eisenhower – built the interstate highway system (Obviously)
Manhattan Project – Secret project to develop to atomic bomb – Research directed by Oppenheimer
Brown v. Board – I mentioned this one arlier. It overturned Plessy v. Ferguson and it led to the integration of schools.
Anti-Trust – Teddy Roosevelt attacked trusts. The Sherman Anti-Trust Act was the first legislation to attack trusts but it was ineffective initially.
Regulation of food and drug – Not 100% on this but I think some of it stems from Upton Sinclair’s book “The Jungle”. It was intended to expose poor factory conditions but instead created outrage over the filth of slaughterhouses. It led to the Meat Inspection Act and also helped bring about the Pure Food and Drug Act (both in 1906).
Yellow Journalism – Also called “Yellow Press” . Pulitzer and Hearst were the biggest. It was basically sensationalism and distorting stories to make them sell. Kinda like the National Inquirer today.
East/West Germany – After WW2 Germany was split. The USSR controlled East. US,Brit,France held the west. communist west v. communist east. Berlin was also split into east/west. The Berlin airliftt also ties in with this.
Hope this helps!