Our bankruptcy attorney had a client that was in the middle of filing a Chapter 7 when her employer promoted her to full-time pay. At the time she originally filed her petition she was only working part-time.
When we entered her new income information into Schedule I, the Means Test automatically recalculated and placed her into a Chapter 13. In fact, her increase in income placed her $3,008.00 over the median.
But thanks to the changes in the bankruptcy law, we were able to go into the Means Test and fill out the remaining tabs. Once we entered the debtor’s information for the taxes deducted from her check and the additional school expenses for her dependent children, the Means Test adjusted and qualified her for a Chapter 7.
The moral of the story is this: If you only fill out the first 2 tabs within the Means Test Form and the debtors do NOT qualify for a Chapter 7, you need to enter the data in the remaining tabs (such as: Living, Housing, Car, Necessary, Additional, etc.) The data you enter can be found in Schedule I and J. Normally this will change a Chapter 13 to a Chapter 7 (depending on the circumstances of course.)
And do not be afraid to ask your attorney for help if you have trouble understanding where the figures go on the Means Test. The point is that you should give it your “best shot” and then send to the attorney to review with you over the phone.
If you are afraid to speak up and cause debtors to go into a Chapter 13 (who do not have the financial ability to do so), you will not only cost the attorney and court $1,000s of dollars, but you could be taking money out of the hands of poor people who need it to survive unless the attorney catches your error and recalculates the Means Test him or herself. Your job is to make life easier for your attorney, not cause him or her to spend more time than is necessary.
Sincerely,
-The 713 Training Team
www.713Training.com
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Disclaimer: We at 713Training.com not attorneys; any information provided by 713 Training should not be considered legal advice. The information in this article, and any other materials provided by 713 Training, whether delivered verbally, written or via any other means, including electronic/digital delivery and storage, is for training purposes only, and is intended for individuals who work under the direction of a licensed attorney.
