Deck 17: Statement of Current Monthly Income

Question 1

The debtor is filing for Chapter 7 bankruptcy today, August 30^th. The Means Test would include the months of _________.

A) February through August.
B) March through August.
C) March through July.
D) February through July.

Answer 1

February through July.

Question 2

Due to being laid off, the debtor's only source of income is unemployment compensation which is included in the Means Test.

Answer 2

False

Question 3

Child support isn't income, so it's excluded from the Means Test.

Answer 3

False

Question 4

The median income for the Means Test is based on the __________.

A) city and county average income of residents.
B) the state average income.
C) the average income of persons in a similar field of employment.
D) none of the above.

Question 5

Marital status affects Means Test calculations.

Question 6

In February, the debtor moved into her boyfriend's apartment. Six months later, she needed to file bankruptcy because of job loss. For purposes of the Means Test, she should include her unemployment compensation and domestic partner's income.

Question 7

The debtor is retired military and receives a pension from Veteran Affairs, but also has a part-time job with Uber and teaching self-defense classes. For purposes of the Means Test, the income earned from Uber and teaching is included, but the pension from the VA is excluded.

Question 8

Form 122A-2 is only required when _________.

A) the debtor has been working consistently for six months.
B) when the debtor's income exceeds the state median income.
C) when the debtor has more than five percent disposable income after calculating Schedules I and J.
D) the debtor's income exceeds the median income in their district.

Question 9

After only working for the employer for three days, the debtor was fired from his job. However, within a few days, he found a new job with higher wages. For purposes of the Means Test, ________________.

A) include income from both jobs if it was within the last six months.
B) don't include the job the debtor was fired from because he only worked there three days.
C) don't include the job the debtor was fired from because that's an automatic disqualification for bankruptcy under §707.
D) include information from both jobs since being fired qualifies as a presumption of abuse.

Question 10

Due to the holiday season, the debtor earned more income than normal. How should this be handled for purposes of Schedule I and the Means Test?

Question 11

For purposes of the Means Test, define a "presumption of abuse."

Question 12

The debtor is considering bankruptcy because he closed his company. What should you ask the debtor about the debts related to the company?

Question 13

Are disabled veterans automatically excluded from the Means Test?

Question 14

In the client's divorce case, the ex-spouse is keeping the car and has been making payments, but the debt is in the name of both parties. Without the car loan, the client does not pass the Means Test. Can the client list the debt on Form 122, even though the client is not keeping the car or making any payments on it?