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Acing Bankruptcy’s Means Test For Those Over Median Income

By Cathy Moran

acing the means test

Your future living expenses may be the key to passing the bankruptcy means test. Those who are under median income for their state have already passed the means test. Those over median income move on to the expense portion of the test to calculate whether they have more than the allowed disposable income. Most often, […]

Filed Under: How bankruptcy works, Means test Tagged With: 2024, expenses, means test

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

Everyone gets $1M + bankruptcy exemption

Bankruptcy exemptions vary from state to state, but everyone gets an exemption of ~$1.75 M for money in an IRA. It's part of the Bankruptcy Code (section 522(n)) that applies to all filers, wherever they live. The exemption covers both classic, before-tax IRA's and Roth IRA's that are funded with after-tax dollars. … Read more

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