I found this interesting blog on Means Testing

[southernbelle]

I thought you guys would find this interesting. I did.

Muttering about the means test

The stupidity of the means test as a metering device in bankruptcy was apparent as I worked through the case of a single debtor. Because she is a renter with an old, paid-for car, and no unpaid taxes, the means test will compel her to pay a significant amount monthly to her Chapter 13 plan.

Whereas, if she had mortgages that were double or triple the amount of her rent, or an upscale new car, or years of unpaid taxes, those payments would be deductions from her income in calculating what she must pay in Chapter 13. Her unsecured creditors would get nothing: all the available money would be diverted to secured claims or taxing authorities.

Does it seem to anyone else that we are rewarding the wrong sort of behavior?


This is the link to the blog. http://www.moranlaw.net/blog/page/3/

This blog is by Cathy Moran and I occasionally read it just to get a feel for what the she's got to say and have also found some really good information there. If you guys get a chance to read some of her blog, it might be worth it.

[sunshine mary]

Oh I agree with her !! It's true and really sad but hey I didn't make the rules !

[TX Bluebonnet]

I've been all over that website in the past few weeks getting all sorts of easy to read bankruptcy info, but never noticed anything about a blog. Thank you so much for sharing that!