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Chapter 13 debtor relocates to another state and the means test
I don't think Lanning touches the issue of whether a means test is needed
for a converted case. I think the Code specifies that it applies before
filing. The US Trustee position is that a new one is needed upon
conversion. Most of us generally comply, because the thing that spurred the
conversion stands up on the B22. What would a judge say? I don't know that
it's been tested: must a debtor file an amended B22 upon conversion of
chapters? Maybe you have the right set of facts.
So maybe you just go along and file an amended B22. Recall, just because
your client "doesn't pass" a new means test doesn't mean they're out of
luck. It just means the presumption applies. And presumptions are made to
be rebutted, based on the facts. (e.g.: lost a job one month ago)
Hale
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The post was migrated from Yahoo.
Chapter 13 Debtor's plan was confirmed some time ago. Debtor relocates to another state. Same employer. Same income. Virtually the same median income standard in the new state. Higher living expenses in the new state, both on the means for the newState and in actuality for thenewly relocated Debtor. If the case is converted to chapter 7, the need for a new means test is obviously triggered. Since it is still a California case, its a California means test. Debtor will not pass the means. On schedules I and J its a little more interesting. Any thoughts by anyone on the impact of Lanning on this?
Chapter 13 Debtor's plan was confirmed some time ago. Debtor relocates to another state. Same employer. Same income. Virtually the same median income standard in the new state. Higher living expenses in the new state, both on the means for the new State and in actuality for the newly relocated Debtor. If the case is converted to chapter 7, the need for a new means test is obviously triggered. Since it is still a California case, its a California means test. Debtor will not pass the means. On schedules I and J its a little more interesting. Any thoughts by anyone on the impact of Lanning on this?
The post was migrated from Yahoo.