Friday, December 21, 2012

The Mayans were Wrong... Now what?


I woke up this morning, and noticed the sun had, in fact, come up.

Once I had finished a cup of coffee, I realized that my back yard had not been converted into a smoking hole in the ground, nor had my house been swallowed by an earthquake.  The earth appeared to be, for the most part, still here.  A brief check of the news and various social media sites confirmed what I had already suspected...the world did not end on December 21, 2012. 

The news might not be so good for everyone, though.  Over the past year, I had heard anecdotal reports that some people who believed that the Mayans accurately predicted that the end of the world on December 21, 2012 have maxed out credit cards and incurred large amount of debt under the belief that they would not have to repay.  Essentially they were counting on cosmic happenstance to intervene as a sort of galactic loan forgiveness program. 

Wishful thinking, perhaps. 

Then again, the reason others are struggling with debt they cannot afford to pay may be a bit more grounded: the loss of a job, persistent unemployment, medical expenses, foreclosure, poor spending habits, etc.    Whatever the case, Kelsey & Trask, P.C. stands ready to help.  To schedule a consultation with an attorney to address bankruptcy or debt relief, call 508.655.5980. 

We all might as well start off the 14th b’ak’tun with a fresh financial start.


Friday, December 7, 2012

New Figures for Median Family Income Released

It's time for our bi-annual median family income update again. The United States Department of Justice twice per year releases new Median Family income figures for each state and territory. These figures are used to calculate a debtor's eligibility to file for bankruptcy under Chapter 7 of the Bankruptcy Code. If your income is greater than the median income for your state of residence and family size, you many not be able to file a Chapter 7 bankruptcy case.

The Means Test calculation compares your average monthly income (as calculated over the last six (6) months) to the median family income in your state for a household of your size. If your average monthly income is lower than the median family income for your state of residence and family size, then you meet the means test and there is a presumption that you may file for Chapter 7 relief.

The Median Family Income for Massachusetts as of May 1, 2012 were as follows:

Family size 1: $55,185 per year
Family size 2: $66,200 per year
Family size 3: $82,873 per year
Family size 4: $102,194 per year

add an additional $7,500 per year for each additional household member.

These figures went down slightly in each category from these figures.

The Median Family Income for Massachusetts as of November 1, 2012 are as follows:

Family size 1: $54,475 per year
Family size 2: $66,076 per year
Family size 3: $80,822 per year
Family size 4: $101,523 per year

add an additional $7,500 per year for each additional household member.

If your income is greater than the median income for your state of residence and family size, you still might meet part (b) of the means test after taking into consideration certain expenses as defined by the Bankruptcy Code and other deductions, including regular charitable donations (up to 15% of your income), school expenses, payments on 401(k)/IRA loans, and health Insurance. If you are subject to this calculation an attorney can help you perform this task.

Click here to learn more about The Means Test or use our Means Test Calculator.

To have an attorney help you with these calculations call 508.655.5980 to schedule a consultation or e-mail us here.
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