Starting December 1, 2014, several changes to official bankruptcy forms took effect which impact those filing after that date. Bankruptcy can be a complex process, and there are many legal rules to you must adhere to. Part of that process includes filing numerous forms. As of December 1, 2014, the necessary forms in your case may have changed. Read the information below regarding how these changes could impact you.
To qualify for Chapter 7 bankruptcy in California, you must earn less than the median income for a California household of your size. This is known as the “means test.” When you file for Chapter 7, you will be required to complete a means form. Previously, the means test was one form; now it is split into three forms:
Instead of containing the entire, complicated means test on one form, these new forms divide the test based on your individual financial situation.
Like the Chapter 7 forms, there are important changes to the Chapter 13 forms. A key step in a Chapter 13 bankruptcy is creating creditor payment plan based on your disposable income, which reorganizes your qualifying debt. As with the Chapter 7 forms, this plan calculation was previously completed in a single form. Now, this step may be completed with two forms. You may have to file just one or both of these forms, depending on your income level:
Two other important form changes relate to filing fees. Starting December 1, 2014, the filing fee to begin a new Chapter 7 case in California is $335; the fee is $310 for a new Chapter 13 case. Some bankruptcy applicants may have difficulty paying these costs out of pocket. In that case, you can apply to pay the filing fee in installments. A change to this form actually removes any reference to specific filing fees. If you need to apply to pay the filing fee in installments, you will need to use the updated form.
Similarly, some applicants may qualify to have the entire filing fee waived. Again, you would need to apply for such a waiver. If you apply for a fee waiver on your Chapter 7 case, the new form no longer specifically mentions the filing fee amount. While these changes may seem somewhat insignificant, it is important to use the correct form. So, if you are applying to waive your filing fee, or make it in payments, be sure to utilize the changed forms. For information on forms 106c and 106a/b, read here.
Changes to bankruptcy forms may impact your case more than your realize. It is essential that the proper forms be used when you submit your petition to the court. Bankruptcy can be more than a little confusing, so you should seek out legal help. At the Law Offices of Melanie Tavare, our legal team can answer your questions and offer experienced assistance in your case. Contact us today to schedule a consultation.
The Law Offices of Melanie Tavare are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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