THE MEANS TEST; CALL 559-320-7029 TO ANSWER ALL YOUR BANKRUPTCY ISSUES.

THE MEANS TEST IN BANKRUPTCY You may have read that the new bankruptcy law imposes a "means test" on who can file for Chapter 7 bankruptcy. You might think this new test will prevent you from filing. But, chances are, you're wrong. Most people considering bankruptcy have no trouble passing the bankruptcy means test. Indeed, some lawyers think more people will qualify for Chapter 7 under this test than under the old law, where judges had no fixed formula. Use this calculator find out where you stand. THE FORMULA The law now uses a standard mathematical formula to determine whether you can file for Chapter 7 — or, to put it in legal terms, whether filing for Chapter 7 would be an 'abuse' of the bankruptcy system. (Those who fail the means test, are left with a Chapter 13 repayment plan as their only bankruptcy option.) The bankruptcy means test is actually a two-part test and you only need to pass one of them to qualify for Chapter 7. Test 1. "Median Income" This is a very simple test that compares your average household income for the past six calendar months to the median income for your state, If your income is below the median, you qualify for Chapter 7. If it is above the median, you must pass Test 2. Test 2. "Disposable Income" This test deducts expenses from your income to determine how much you can pay your unsecured creditors over the next five years: for example if you lived in Harris county; If you can pay at least $10,000 ($167 per month), you can't file for Chapter 7. If you can pay at least $6,000 ($100 per month) and that is at least 25% of what you currently owe your unsecured creditors, you can't file for Chapter 7. If your disposable income is less than $100 per month, you can file for Chapter 7. Certain deductions are standard allowances based on the number of vehicles you operate, the number of people in your household, and the cost of living in Harris County. Depending on which county you live in the amounts may change but the method of calculation will not. In addition, to these standard deductions, you can also deduct the full amount of certain actual expenses such as mortgage and vehicle loan payments.

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Abraham Lincoln 16th President of the United States Benedict Arnold Betrayed colonists to British John James Audubon Illustrated Birds of America P.T. Barnum The Great American circus owner John Barrymore Actor; Romeo & Juliet Lionel Bart British composer - lyricist - playwright (1972) Kim Basinger Oscar - winning actress (1993) Frank Baum Wizard of Oz author Barbara Bel Geddes Actor; Miss Elle on Dallas Melvin Belli Famous Lawyer known as 'The King of Torts' Bunny Berigan Jazz trumpeter great George Best Manchester United soccer Jay Black rock star, lead member of "Jay and the Americans" (1986) John Wayne Bobbitt Penectomy survivor Peter Bogdanovich American Filmographer Bjorn Borg Pro tennis player Lorraine Bracco Oscar - nominated actress (1999) Matthew Brady portrait / US Civil War photographer (1872) Toni Braxton rock star (1998) Louise Brooks Actor; Pandora’s Box Sylvia Browne Afraid to accept Randi’s $1million challenge Lenny Bruce Comic; Multiply obscene comic Buffalo Bill Wild West showman Gary Burghoff Radar O’Reilly in MASH Anita Bryant singer, 1958 Miss America 2nd runner up (1997) Crazy Cabbie Radio personality on the Howard Stern menagerie Tia Carrere Actor; Wayne’s World Nell Carter Actor; Housekeeper on Gimme a Break Raymond Carver Author; Will You Please Be Quiet, Please? Miguel de Cervantes Novelist; Don Quixote George Clinton rock star (1984) (note: this is not the composer George S. Clinton) Samuel L. Clemens ("Mark Twain") best - selling American author - humorist (1894) Natalie Cole singer Gary Coleman actor (1999) Concrete Blonde rock group John Connally Former Texas Governor, wounded in 1963 Kennedy assassination in Dallas (1987) Francis Ford Coppola Oscar - winning film writer - director - producer (1999) Cathy Lee Crosby Actress - American Author (1992) David Crosby singer / songwriter Aleister Crowley Wickedest man in the world Vic Damone singer (1971) Dorothy Dandridge Oscar- nominated actress singer (1963) Darren Day Music Theater Star Daniel Defoe Author; Robinson Crusoe Lee De Forest Oscar-winning film/sound synchronization pioneer, producer (1937) Dino De Laurentis Oscar - winning film producer (1988) John DeLorean Automobile designer and entrepreneur Clarissa Dickson Wright Star of “Two Fat Ladies” TV cooking show fame (2003) Walt Disney Oscar - winning film producer, animation & theme park pioneer (1923) Henry Dunant Red Cross founder William C. Durant Founder of General Motor Eddy "the eagle" Edwards Great Britain's first Olympic ski jumper (1991) Chris Eubank Former World Champion Boxer (2005) Keith Famie Survivor II: The Australian Outback contestant, chef-restauranter, American Author (1996/97) Freddy Fender Musician; Before the Next Teardrop Falls Stephin Fetchit Actor; Professional black stereotype Eddie Fisher Singer; crooner dumped by Liz Taylor Mick Fleetwood rock star, lead member of "Fleetwood Mac" (1984) Heidi Fleiss Clothing line founder; American author Henry Ford Automobile manufacturer William Fox Co-Founder of 20th Century Fox Film Corporation (1936) Red Foxx actor – entertainer R. Buckminster Fuller Architect-futurist-invented the geodesic dome Zsa Zsa Gabor Cop-slapping Gabor sister Marvin Gaye singer (1970s) Andy Gibb rock star (1987) Gary Glitter Rock and Roll Part 2 Bernhard Goetz Subway vigilante criminal Charles Goodyear 19th century American inventor, who discovered how to vulcanize rubber Ulysses S. Grant 18th US President; Civil War general, best-selling American Author, face is pictured on the US fifty dollar bill ( 1884 after leaving office) Elizabeth Ward Gracen actress; model; Miss America 1982 (1999) Paulo Gucci 1993 Bob Guccione publisher and founder of Penthouse magazine (2003) Johannes Gutenberg Inventor of movable type Tony Gwynn Batted .394 in 1994 for the Padres Merle Haggard country music star (1993) Corey Haim actor (1997) Frans Hals Dutch portraitist Dorothy Hamill Olympic gold-medal ice-skater (1996) M.C. Hammer rock star (1996) George Frideric Handel Messiah composer Richard Harris Oscar-nominated actor-producer-director Isaac Hayes Oscar-winning songwriter - composer - musician -singer (1976) H.J. Heinz Founder of Heinz Ketchup Margaux Hemingway Troubled actress OD’d on klonopin Sherman Hemsley actor (2002) Ty Herndon Country music star caught in cruisy park Milton Snavely Hershey founder of Hershey’s chocolate Kent Hovind Creation Science huckster Steve Howe MLB pitcher E. Howard Hunt Coordinated Watergate break-in Nelson Bunker Hunt Tried to corner the silver market Ron Isley Rhythm-and blues singer (mid late 1990s) La Toya Jackson rock star (1995) Don Johnson actor-producer Eli Jacobs Former Baltimore Orioles owner Janice - Marie Johnson rock star/disco diva (1980s) Al Jolson Miami Vice, Nash Bridges George Jones Country singer Grace Jones Singer Entertainer 1992 Kacey Jones country music star, musical humorist Clay Jordan Survivor V: Thailand contestant; restauranter (2001) Chaka Kahn rock star Charles Keating Morality crusader, white-collar swindler Buster Keaton Actor, The General Bernard Kerik NYC Police Commissioner, 2000-2001 Margot Kidder Lois Lane in Superman movie Larry King talk-show host, best selling American author (1978) Robert Kiyosaki Rich Dad, Poor Dad author Marion “Suge” Knight Death Row Records Rap Producer 2006 Bowie Kuhn former US baseball commissioner Gary Kurtz Oscar-nominated film producer Veronica Lake actress (1951) Lorenzo Lamas actor (2004) Cyndi Lauper rock star (1983) Anton LaVey Founder of the Church of Satan Stan Lee Comic book industry pioneer , co-creator "Spider Man," "The Incredible Hulk," "The X-Men" etc (2001) Jerry Lewis comic Jerry Lee Lewis famous Rock n’ Roll star Horace Liveright Publisher of the Modern Library series Meat Loaf rock star (1983) Joe Louis Boxer 1956 Ashley MacIsaac musician fiddler (2000) Jackie Mason comedian – entertainer Henry Mayhew Punch journalist Mindy McCready Country Music star , American author George McGovern politician 1991 William McKinley 25th US President 1897-1901 Tom Metzger white supremacist Marvin Mitchelson celebrity divorce lawyer Melba Moore Singer - Actress Debelah Morgan Singer -Songwriter - Producer (2000) Lorrie Morgan Country music star, American Author Robert Morris Politician who financed Revolutionary War Levi P. Morton Vice President under Benjamin Harrison Motor City Five/MCS rock group of the 1960s (1970) John Nash British Regency architect Willie Nelson singer-songwriter-actor, American Author (1990) Wayne Newton singer-actor - entertainer (1992) Harry Nilsson singer/songwriter; Me and My Arrow F. Donald Nixon Nixon’s brother Immanuel Nobel father of manufacturers - philanthropist Alfred Nobel , who founded the Nobel Prize (twice - 1833/year Alfred was born, 1856/ when Alfred was 23) Mary Nolan actress (1931) Emperor Norton Emperor of the United States and protector of Mexico Ted Nugent Rock Star Kate O’Brien The Land of Spices novelist Thomas Paine Common Sense activist Johnny Paycheck country music star (1976) Tom Petty rock star (1979) Gaylord Perry baseball player Philip II King of Spain, 1556-1598 Buddy Post Lottery millionaire Susan Powter exercise/fitness expert, talk show host, best selling American Author (1995) Burt Prelutsky American television writer; screenwriter (1997) Randy Quaid actor Lynn Redgrave actress Rembrandt painter Tommy Rettig actor; Jeff Miller in Lassie Burt Reynolds Oscar-nominated actor - director , American Author (1995) Debbie Reynolds Oscar nominated actress-singer, American Author (1997) Mickey Rooney Oscar nominated actor, American Author (1962) Rick Ross Activist; cult expert, deprogrammer Run DMC Rap Group in 1993 Harry Saltzman film producer (James Bond movies) (1975) Derek Sanderson Hockey Player Ray Sawyer rock star, member of "Dr. Hook and the Medicine Show" (1973) Oskar Schindler activist who saved over 1000 Jews from the Nazis Shenandoah country music band (1991) Billy Sims Detroit Lions RB Tom Sizemore Heat, Robbery Homicide Division actor Anna Nicole Smith Model-Actress, 1993 Playboy magazine "Playmate of the Year"(1996) Dee Snider frontman for Twisted Sister, musician Phoebe Snow Jazz vocalist Lynne Spears American author, mother of rock star Britney Spears (1998, filed with husband James prior to Britney's stardom) Leon Spinks boxer Sheryl Swoopes Three-time WNBA MVP J. Fife Symington Governor of Arizona (1995, while still in office) Lawrence Taylor NFL hall of famer Randall Terry Operation Rescue founder Nikola Tesla Invented alternating current Donald Trump billionaire entrepreneur TLC rock group (1995) Mark Twain Huckleberry Finn author Mike Tyson boxer (2003) Johnny Unitas legendary Hall of Fame football quarterback John Whitehead Ain’t No Stoppin’ Us Now, musician Oscar Wilde acclaimed poet and author James Wilson U.S. Supreme Court Justice 1789-1798 Tammy Wynette country music star (1988) Florenz Ziegfeld actor, the Ziegfeld Follies Remember that all these high profile people some who could be considered well off all filed for bankruptcy protection. If someone that well off can get into financial trouble it can happen to anyone. These notable people took advantage of their constitutional right to use bankruptcy to address their financial problems and were given a chance to get a fresh financial start and get their financial affairs back on track. Bankruptcy can be an option for Debt Relief and can put you back in control of your finances. Don’t loose everything. Get help today.

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CALL 559-320-7029 TO ANSWER ALL YOUR BANKRUPTCY ISSUES. Fresno Bee: Many Valley Homeowners Abandoning Mortgages The Fresno Bee had a nice feature article on May 8 entitled More Valley homeowners abandon mortgages. I commented on the morality of strategically defaulting here, but this Fresno Bee article addresses more of the practical issues involved and the author seems to do a good job of answering all of the common questions. One question answered is the hit on one’s credit score from a foreclosure. This is what the article said on that: Like any foreclosure, a strategic default leaves a scar on a borrower’s credit history. Credit counselor Dees — whose housing counseling program is underwritten by an assortment of federal grants and grants from banking organizations and other industries — said many of his clients are frustrated after their bank has denied a plea for help, especially after so much news about bank bailouts and government programs to modify loans. “One of the first things we explain is that you’re not hurting the bank by walking away,” Dees said. “You’re only putting yourself in a worse situation.” While still a red flag, either a short sale — in which a bank agrees to let the owner sell the home for less than the balance owed — or a deed in lieu of foreclosure “look more favorable on a credit report,” Dees said. “It’s much better to work with the lender to get it sold the right way.” Maddux and White suggest that the effects of foreclosure are overblown. “The perception is grossly misrepresented,” said Maddux. “The damage isn’t as bad as people think — it’s about 100 [to 125] points on a credit score.” White said most people “can expect to recover from the negative impact of foreclosure on their credit score within a few years.” By renting for far less, they can apply the rest of their mortgage payment to get ahead on other bills, he said. With the number of people defaulting, I had assumed the credit impact could not be that bad, but I had not yet seen someone take a guess as to what the average hit was.

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Chapter 7 is designed as an orderly, court-supervised procedure by which a trustee collects the assets of the debtor’s estate, reduces them to cash, and makes distributions to creditors, subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. ( Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor’s assets. These cases are called “no-asset cases.” Usually a debtors with assets that they wish to keep and that are not covered by exemptions file chapter 13 bankruptcy. A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most chapter 7 cases, the debtor receives a discharge that releases the debtor from personal liability for certain dischargeable debts. The debtor normally If you are a homeowner, you may be able to keep your home if it fall within an homestead exemption. If you are a renter, then other exemptions apply so you may keep items of personal value to you. This will be determined once you have a consulation with one of our attorneys.