The New Mexico Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 — Post 2005 is an essential document required in bankruptcy proceedings. This form plays a crucial role in determining a debtor's eligibility for Chapter 7 bankruptcy and calculating their disposable income. Understanding the intricacies of this document is vital for both bankruptcy attorneys and individuals considering filing for Chapter 7 bankruptcy in New Mexico. The Statement of Current Monthly Income provides a comprehensive overview of an individual's income from all sources during a specific time frame. It includes wages, salaries, tips, business income, rental income, child or spousal support, and any other regular source of funds. This form requires individuals to disclose all income details to ensure accurate calculation of their repayment abilities. The Means Test Calculation is another crucial component of this form. It is used to determine if an individual's income exceeds the Chapter 7 bankruptcy threshold and whether they are financially capable enough to repay some of their debts under Chapter 13 instead. The Means Test is designed to prevent abuse of the bankruptcy system by high-income earners. It involves comparing the debtor's income against the state's median income for their household size. Different types or versions of the New Mexico Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 — Post 2005 may include variations based on updates and changes in bankruptcy laws. It is essential to stay up-to-date with any modifications to ensure compliance with current regulations and accurate completion of the form. Bankruptcy attorneys in New Mexico must familiarize themselves with the nuances of the New Mexico Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 — Post 2005. They must have a thorough understanding of the form's requirements, including the specific information needed to complete it accurately. By carefully analyzing their client's financial records, attorneys can ensure the inclusion of all relevant income sources and deductions to provide an accurate representation of their client's financial situation. Individuals contemplating Chapter 7 bankruptcy in New Mexico should also seek professional guidance from experienced bankruptcy attorneys. These attorneys can assist in accurately completing the Statement of Current Monthly Income and Means Test Calculation. They can ensure all income sources are appropriately reported and deductions are considered, providing individuals with a clear understanding of their eligibility for Chapter 7 bankruptcy. In conclusion, the New Mexico Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 — Post 2005 is a critical document in the bankruptcy process. It requires accurate reporting of all income sources and involves a thorough assessment of an individual's financial situation. By understanding the intricacies of this form and seeking professional guidance when needed, individuals can navigate the bankruptcy process efficiently and determine the appropriate course of action for debt relief.
New Mexico Statement of Current Monthly Income and Means Test Calculation for Use in Chapter 7 - Post 2005
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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.
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.
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.
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.
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.
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don't have the option of filing Chapter 7.
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.