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.
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U.S. Trustee’s Office Releases Updated Bankruptcy Means Test Numbers
The U.S. Trustee’s Office, which is the governmental agency that oversees the administration of bankruptcy cases, has released the latest numbers for means test qualifications used in Chapter 7 and Chapter 13 bankruptcies. The new numbers will to be used in all consumer Chapter 7 bankruptcies filed after November 1, 2017.
The means test calculates gross annual income based on the previous six months of gross income for the household, to determine if an individual or couple qualifies for chapter 7 bankruptcy. The projected annual gross income is then measured against the Median Family Income for the household size and state in which the filer resides. If the projected annual gross is less than the applicable Median Family Income, the filer qualifies for Chapter 7 bankruptcy protection. If the projected annual gross is more than the Median Family Income, the filer must complete the second half of the means test to 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.
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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.