November 15, 2022 By:
Under the means test, some of your monthly payments may not be deducted from your disposable income. For example, you can’t deduct payments made into 401(k) or other retirement accounts or for college expenses for your children.
You may actually give more to your church than your records show, but if you can’t prove it, don’t take the deduction. Without adequate proof, it can be the basis for an allegation of bankruptcy fraud.
Your attorney can help you make certain that you take all the deductions allowed under the law, such as taxes and insurance not included in your mortgage payment.
You may be inclined to enlarge your household size to qualify for Chapter 7, but you’ll also have to include the income of everyone included in your household.
It’s only income when you receive it. Likewise, it’s only a deductible expense when you’ve actually paid it.
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.