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Means Testing for Bankruptcy

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  • 05-23-2016, 03:08 PM
    Sarah1974
    Means Testing for Bankruptcy
    My question involves bankruptcy in the state of: Ohio

    I have $57,000 in debt and I am filing bankruptcy. I have two questions.

    1. How long does the means test take?

    2. I have used a store card just two weeks ago, but haven't filed yet, will this particular account be flagged as possible fraud? I must state I forgot about a couple of orders that would post when shipped, otherwise I haven't used any of my cards. It was a charge totaling almost $600. Will this be considered a flag?
  • 05-23-2016, 03:42 PM
    Dogmatique
    Re: Means Testing for Bankruptcy
    1. The means test isn't a test of that sort - it's just a tool used to calculate if you qualify for Ch 7 protection (if you don't, you'd generally have to go with a Ch 13 instead - this is a reorganization of your debts)

    2. Unless you're buying diamonds etc., incidental purchases are fine. You have to live on something and the court understands this.

    I think you need an attorney.
  • 05-23-2016, 04:05 PM
    adjusterjack
    Re: Means Testing for Bankruptcy
    Quote:

    1. How long does the means test take?
    A couple of hours depending on how well organized your records are. There appear to be 3 forms involved in the Ch 7 Means Test. Fill them out yourself and see how you do:

    http://www.uscourts.gov/forms/means-...monthly-income

    http://www.uscourts.gov/forms/means-...-under-ss707b2

    http://www.uscourts.gov/forms/means-...-under-ss707b2

    Once you have completed them, hire a bankruptcy lawyer.

    Quote:

    2. I have used a store card just two weeks ago, but haven't filed yet, will this particular account be flagged as possible fraud? I must state I forgot about a couple of orders that would post when shipped, otherwise I haven't used any of my cards. It was a charge totaling almost $600. Will this be considered a flag?
    Probably not.
  • 06-30-2016, 04:26 PM
    LWren
    Re: Means Testing for Bankruptcy
    Quote:

    Quoting Sarah1974
    View Post
    My question involves bankruptcy in the state of: Ohio

    2. I have used a store card just two weeks ago, but haven't filed yet, will this particular account be flagged as possible fraud? I must state I forgot about a couple of orders that would post when shipped, otherwise I haven't used any of my cards. It was a charge totaling almost $600. Will this be considered a flag?

    The likelihood is small that the credit card company would pursue an adversary proceeding against you for an insignificant amount, but there is no way anyone can tell you "No, it won't happen." The longer you wait to file the bankruptcy after the last time you used the credit card, the smaller the risk becomes, as it does if you make some payments towards the debt. These things will not eliminate the risk, just lessen it. Also, if considering making payments towards the debt, make sure to not pay any creditor a total of $600 or more on antecedent debt in the 90 days prior to filing the bankruptcy petition.
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