Alturas, CA Bankruptcy Law Firms & Lawyers

There is no income limitation per se because income on its own doesn't show the whole story. Generally speaking, the first question is whether the income is above the median, which triggers something called a Means Test. Then you perform the Means Test by deducting from income expenses that have been identified as "reasonable and necessary " to arrive at a disposable income number. See 11 USC Section 707(b)(2). You can imagine that someone who has been ordered by state court to pay child support or has significant health issues and consequently higher healthcare needs would not be in the same position as someone who doesn't. Under some limited circumstances an individual may be exempt from the Means Test. The interpretation of what are "reasonable and necessary expenses" is based on statute and case law where particular expense have been previously challenged in a particular jurisdiction. The interpretation of statute may be different in one jurisdiction from another. For some expenses (for example, whether voluntary retirement savings are considered a reasonable and necessary expense) there may be more uniformity while other expenses may remain in a gray area where arguments can be made for and against it. The initial calculation and if applicable means testing is performed in Form B22A. The words contained in the form itself are limited and may not bring in relevant statutes, your Trustees' position, or case law to help fill it out properly. I cannot in good conscience recommend you take on this task on your own particularly if your income is above the median triggering the means test. In addition to understanding what is and isn't a reasonable and necessary expense it's important to understand what is "current income" and properly calculate that number before moving on to entering deductions.

Anything inherited within 180 days of the filing is property of the estate. It must be reported and the failure to report can result in revocation of the discharge. It may also be a bankruptcy crime that is a felony under federal law. The trustee can only use money to pay creditors and reasonable administrative costs. (S)He does not get to keep the entire amount.