Legal Question in Bankruptcy in California

Chapter 7 ''Means Test''

I was laid off from my job in

December and given a severance

check which I cashed in December.

My typical monthly income was $8K

per month, but in December my

income amounted to $43K. I

anticipate remaining unemployed

well throughout 2009, and my only

source of income will be $450 each

week from the state unemployment

department. I am Head of Household

with one child, so I see no way out

from under $25K in credit card debt

other than to file BK-7. Can you tell

me when is the soonest date I will be

able to file?


Asked on 1/26/09, 7:32 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Chapter 7 ''Means Test''

Even with your regular salary, the $43,000 severance payment alone would put you over the median for a household of two. By the way, the median income for a household of 2 in CA is $62,690. Your regular income of $8,000 would also have put you over the median.

If you filed for bankruptcy in July, the severance pay would not be considered in your means test income. However, being over the median doesn't mean that you fail the means test. Your allowable deductions may allow you to "pass" means test soon that July.

If you want a free consultation, please visit my website for details on what we need to properly review your case.

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Answered on 1/26/09, 8:56 pm


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