Legal Question in Bankruptcy in New York

If no presumption of abuse exists (i.e. I pass the means test), can I still file for Chapter 7 if my Schedule I (income) and Schedule J (expenses) result in a showing of $800 excess monthly income?

I have a better paying job now than I did four months ago, and the average of the 6 past months income combined with my current tax deductions makes it so no presumption arises.

Thanks for any input.


Asked on 2/02/10, 3:34 pm

1 Answer from Attorneys
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

If your monthly income exceeds expenses by $800, then the Chapter 7 trustee would most likely move to have your case dismissed. Eight Hundred Dollars is far too much excess income to permit you to receive a Chapter 7 discharge, even though you pass the means test. You may be able to file a Chapter 13 bankruptcy, which would require that you pay back some, or all of, your debts, depending on the amount of debt that you have.

Please contact my office directly if you would like to discuss your situation further. You may also visit my website at amdlaw.com for more information.

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Answered on 2/08/10, 7:07 am


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