NO MORE TAXES?

[tccoyle]

With regard to the Bankruptcy Reform Act:

Sec 707 (2)(A) (i) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall presume abuse exists if the debtor's current monthly income...

Currently monthly income is...

Sec 101 (10A) 'current monthly income'--

(A) means the average monthly income from all sources that the debtor receives without regard to whether such income is taxable income, derived during the 6-month period ending on --...


What does this mean? That the means test does not allow for the payment of income taxes (federal or state) nor for the payment of social security and medicare amounts....the test to determine whether or not you can file chapter 7 DOES NOT consider that you have to pay taxes before anyone else.

OH, by the way....if you pay for childcare....it is not an allowable expense...

http://www.cazelaw.com/meanstest.htm

Tracy

[Trillo]

1. Makes me think of gross income not including expenses.

Gross versus Net.

It seems rather flawed, doesn't it? The law should be retitled:
Workers Indenture Act.

[GetTheRightVote]

2. This is all so sad for the American consumer, screwed by our reps

:kick:

[punpirate]

3. I don't read it that way....

To me, it sounds as if all non-taxable income has to be included for the purposes of means testing--that would include, say, money received for SS disability, or proceeds from tax-free bonds, gifts on which taxes had already been paid, etc.

[elehhhhna]

4. & inheritances.