A reaffirmation is an official way to “reobligate” yourself on the loan. This involves the lender sending us a reaffirmation contract to be signed by you.
U.S. Trustee Releases Means Test Numbers to Be Used for Chapter 7 Qualification
The U.S. Trustee’s Office has released the latest numbers for Median Family Income Based on State/ Territory and Family Size which are used in the means test qualification for Chapter 7 bankruptcy. These median income numbers are to be used in all consumer Chapter 7 bankruptcies filed after November 15, 2014.
Attached are the latest Median Family Income numbers that have been released by the U.S. Trustee’s Office. In order to determine if an individual or couple qualifies for chapter 7 bankruptcy, the means test estimates gross annual income based on the past six months of gross income for the household. The “Annualized Current Monthly Income” is then measured against the Median Family Income for the household size and state in which the filer resides. If the Annualized Current Monthly Income is less than the applicable Median Family Income, the filer qualifies for Chapter 7 bankruptcy protection. If the Annualized Current Monthly Income is more than the Median Family Income, the filer must complete the second half of the means test in which they are allowed to deduct standardized expenses and real expenses in an attempt to arrive at net income and determine if the filer has the “means” to afford a Chapter 13 bankruptcy plan payment in which the filer pays a portion of his/ her debt to the creditors.
Chapter 13 is essentially a payment plan that you organize through the court system. Think of it as a consolidation loan with teeth.
There are 2 things you must do after your case is filed: (1) attend the meeting of creditors (aka the 341 hearing); and (2) complete a debtor’s education course via phone within 75 days from the date your case was filed. The 341 hearing is sometimes referred to as the meeting of creditors because your creditors can attend the meeting and ask you questions about the information contained in your petition.