SSI is not considered for the means-test or 1325(b)(1)(B)

Social Security Income under the new act is NOT used in either the means-test calculation or under Schedule I vs J to determine the disposable income per month. You must still list the income under Schedule I but the Trustee cannot deny the confirmation of the Plan for failure to contribute the SSI to the creditors under 1325(b)(1)(B).

This decision does not address the bad faith issue of 1325(c). Meaning that the trustee may raise the issue that it is bad faith to keep $1,000 disposable social security income in his pocket each month and NOT pay his creditors. Keep in mind that the goal of bankruptcy is a balancing test between the rights of the creditors and the rights of the debtors.

I think this will be the next issue raised in the near future.

Bankruptcy Statistics

Quarterly Filings by State (2006)
2006
State First Second Third Fourth


Alabama 3,687 4,915 5,557
Alaska 95 176 177
Arizona 1,499 2,329 1,975
Arkansas 1,786 2,468 2,644
California 6,543 9,704 10,983
Colorado 1,483 2,688 2,892
Connecticut 786 1,785 1,216
Delaware 325 387 399
District of Columbia 98 145 145
Florida 4,833 6,506 6,963
Georgia 8,643 9,582 10,977
Hawaii 181 274 256
Idaho 526 799 802
Illinois 6,157 7,587 8,402
Indiana 3,818 5,871 6,352
Iowa 841 1,243 1,407
Kansas 1,070 1,774 1,817
Kentucky 2,264 3,059 3,561
Louisiana 2,058 2,933 3,221
Maine 227 324 377
Maryland 1,960 2,435 2,555
Massachusetts 1,388 2,090 2,278
Michigan 6,686 7,989 9,556
Minnesota 1,326 1,964 2,179
Mississippi 1,572 2,181 2,606
Missouri 3,095 3,931 4,492
Montana 403 565 433
Nebraska 750 1,033 1,145
Nevada 888 1,422 1,571
New Hampshire 322 464 550
New Jersey 2,829 3,593 3,612
New Mexico 511 636 635
New York 5,262 7,820 7,385
North Carolina 3,848 4,153 4,503
North Dakota 128 175 222
Ohio 5,875 9,148 10,047
Oklahoma 1,239 1,758 2,112
Oregon 1,571 1,999 2,306
Pennsylvania 4,871 5,984 6,621
Rhode Island 301 397 433
South Carolina 1,348 1,513 1,604
South Dakota 154 263 253
Tennessee 6,551 7,930 9,505
Texas 7,225 8,541 10,133
Utah 1,072 1,427 1,471
Vermont 133 179 158
Virginia 2,598 3,151 3,483
Washington 2,370 3,102 3,268
West Virginia 556 760 851
Wisconsin 1,967 3,189 3,126
Wyoming 122 203 200
Guam 24 26 44
North Mariana Islands 0 8 1
Puerto Rico 900 1,252 1,567
Virgin Islands 6 3 8
United States 116,771 155,833 171,146

Student Loan Amendment proposed to decrease the interest rate

H.R.5
Title: To amend the Higher Education Act of 1965 to reduce interest rates for student borrowers.
Sponsor: Rep Miller, George [CA-7] (introduced 1/12/2007) Cosponsors (211)
Related Bills: H.RES.65
Latest Major Action: 1/17/2007 Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.


SUMMARY AS OF:
1/17/2007--Passed House without amendment. (There is 1 other summary)

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

College Student Relief Act of 2007 - Amends the Higher Education Act of 1965 to phase-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2011.

Limits FFEL lender insurance to 95% of the unpaid balance of such loans. (Currently, 97% of a FFEL issued after June 2006 is federally-insured.)

Provides for graduated reductions in the percentage of defaulted FFEL loan collections a guaranty agency is allowed to retain until, beginning in October 2010, it is equal to the average rate paid to collection agencies that have contracts with the Secretary of Education.

Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection.

Reduces special allowance payments made to FFEL lenders to compensate them for the difference between FFEL interest rates and market rates. Exempts small lenders from such reduction.

Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans disbursed after June 2007. Prohibits its collection from borrowers.

Increases, after June 2007, the rebate fee charged a holder of FFEL consolidated loans, provided that at least 90% of the total principal and accrued unpaid interest outstanding on loans held by such holder are such loans.

Cost of Filing Bankruptcy

I often times hear the comment if I could afford your fees I would not be in the financial mess that I am in. On average attorney's fees to file a Chapter 7 will be in the neighborhood of $2,000. Sometimes the cost will be lower, sometimes higher.

I will have people say that they can pay $125 on the Internet and file. My response is if that is really what you want to do then go ahead. However before you make that decision and think an attorney is too expensive, do you know the law and how it affects you, do you know whether the 10 year look back period will apply to your case, what about the insurance check you have not cashed, or the tax refurn you have not gotten yet, etc...

If you owe $10,000 or more in credit card, medical, repossession debt, etc... my question to you is how can you not afford to have an attorney on your side protecting your interest? Ben Franklin once said "an ounce of prevention is worth a pound of cure". Meaning you file your bankruptcy and the case gets dismissed or is in the process of being dismissed and now the attorney's fees may double because it may take the attorney twice as much work to protect you or correct the mistakes. This is assuming that an attorney will even take your case at that point. Many attorneys will not touch a bankruptcy case today that started out as a pro se case because of all the new requirements under the bankruptcy code.

If this new law was cut and dry there would be no caselaw to decide, no arguments made by the creditor or the debtor and people could file their case by themselves. However, there are many issues undecided throughout the United States pertaining to the law. What about the issue of credit counseling? Can you take the course and file in the same day or do you have to wait 24 hrs? This answer alone can make the difference between succeeding in your bankruptcy or having your case dismissed.

If you are in the State of Missouri and believe you truly cannot afford a bankruptcy you may seek help from the Missouri Voluntary Attorney Project at (816) 474-6750 or Missouri VAP. For other states you can go to Pro Bono Programs. These folks maybe able to help you file your bankruptcy for free.

By law I must disclose to any potential client that they can represent themselves in the bankruptcy court or use a petition preparer who is not allowed to go to court with them. If the bankruptcy attorneys and judges have been studying this law for the past two years and who continue to debate everyday in court this alone should be evidence that the new and allegedly improved bankruptcy code is NOT as cut and dry as the creditors would want you to believe.

Be informed and protect your rights! Seek the advice of a qualified bankruptcy attorney in your area and get the facts. Find an attorney in your area.

You are not alone!

Sometimes you feel as though you are the only one struggling with financial difficulties. This could not be further from the truth. From a religious standpoint God anticipated your financial troubles.
This is why it is written in:
Deuteronomy Chapter 15 1 At the end of every seven years thou shalt make a release. 2 And this is the manner of the release: every creditor shall release that which he hath lent unto his neighbor; he shall not exact it of his neighbor and his brother; because the LORD'S release hath been proclaimed.

Okay, let's say that you are not religous or that you do not find comfort in that passage. Did you know that in 2006 alone 1,794,795 people filed bankruptcy. That is about .5% of the population in the United States and its territories. No matter how you slice the numbers YOU ARE NOT ALONE!

Everyday people in your area are filing for bankruptcy relief to regain financial control. Don't believe the creditors when they tell you that you are not qualified to file for bankruptcy. Seek professional help in your area by speaking to a qualified bankruptcy attorney. Get the facts today so that you can sleep tonight!

Missouri Bankruptcy

Yes, bankruptcy relief is still available!