The New Hampshire Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 — Post 2005 is a vital document required for individuals filing for bankruptcy under Chapter 7 in the state of New Hampshire. This statement plays a crucial role in determining the debtor's eligibility for Chapter 7 bankruptcy and their ability to repay their debts. The Means Test Calculation is an essential component of the statement. It helps determine whether an individual's income exceeds the state's median income level and if they have sufficient disposable income to repay their debts through a Chapter 13 repayment plan. This calculation considers various factors such as current monthly income, allowable deductions, and expenses to evaluate the debtor's financial situation. Key points to consider when filling out the New Hampshire Statement of Current Monthly Income and Means Test Calculation include: 1. Current Monthly Income: This includes all income sources received by the debtor over the past six months preceding the bankruptcy filing. This may consist of wages, self-employment income, rental income, spousal support, pension, or any other regular sources of income. 2. Deductible Expenses: Certain expenses are deducted from the debtor's monthly income to determine their disposable income. These expenses may include housing costs, transportation expenses, healthcare costs, childcare expenses, education expenses, and other necessary living expenses. 3. Median Income Test: The Means Test Calculation compares the debtor's current monthly income to the state's median income for a household of similar size. If the debtor's income falls below the median income, they automatically qualify for Chapter 7 bankruptcy. However, if their income exceeds the median, further calculations are necessary to determine their eligibility. 4. Disposable Income Test: If the debtor's income surpasses the state's median income, they must complete the disposable income test. This test evaluates the debtor's ability to repay their debts. It calculates the monthly disposable income by subtracting allowed expenses from the debtor's current monthly income. If this disposable income falls within specific guidelines, the debtor may still qualify for Chapter 7 bankruptcy. Otherwise, they may be required to consider Chapter 13 bankruptcy. The New Hampshire Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 — Post 2005 helps assess an individual's financial situation accurately and assists in determining their eligibility for Chapter 7 bankruptcy. By accurately completing this statement, debtors can provide the necessary information for the bankruptcy court and ensure their bankruptcy process progresses smoothly and effectively.
New Hampshire Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 - Post 2005
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How to fill out New Hampshire Statement Of Current Monthly Income And Means Test Calculation For Use In Chapter 7 - Post 2005?
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Even if your income is higher than the median, you still can qualify for Chapter 7 if you don't have enough money left after qualifying expenses to pay on a Chapter 13 repayment plan. Failing the more complex means test calculation isn't even the end of the chances you get.
Form 122A-1. This form is called the ?Chapter 7 Statement of Your Current Monthly Income.? This document simply helps you determine whether your income is below the median income of your state. If it is below the median, you have passed the means test. That means the other two forms in this list will not apply to you.
If a filer qualifies for an exception to the means test, they will file Form 122A-1Supp. You can earn a high income and still pass the means test if you have substantial expenses like a hefty mortgage, multiple car payments, taxes, childcare, health care, or care of an elderly or disabled person.
Calculation of Current Monthly Income: To begin the means test, debtors calculate their current monthly income, which equates to twice the gross income earned in the six months leading up to the bankruptcy filing.
An Increase in Income During Chapter 7 The bankruptcy trustee will eliminate most if not all of your debts, and possibly sell some of your assets to pay debts. This process is appropriate if you have an income but cannot cover all of your necessary expenses or can pay the basics, yet not pay down your debts.
While no specific cash exemption is listed in the federal bankruptcy exemptions, a wildcard exemption allows you to protect up to $1,325 in any property and use up to $12,575 of any unused portion of a homestead exemption to protect money.
That means both taxed and untaxed income, including wages, salary, tips, bonuses, interest, dividends, royalties, retirement income, unemployment and workers' compensation, and others.
To calculate your six-month average gross income, you first need to add up your wages, salaries, and tips for the past six months. Then, divide that number by six to get your average monthly income. If you receive any income from sources other than employment, you'll need to factor that in as well.