I would love to know how she and her mother divided Dr Phil's money
in reading about different bankruptcy chapters I saw this comparison chart for chapter 7 and chapter 13, complete liquidation vs payment plan. an IRS levy and having significant assets you don't want to lose in a chapter 7 are indicators for filing chapter 13 (but she is hiding significant assets and 13 is the pay-your-creditors chapter, dang it)
http://www.bankruptcylawhelp.com/Bankruptcy/Chapter-7-Compared-to-Chapter-13.aspx
BAPCPA, the current law, says that the bankruptcy courts shall look to the "median income" for the state in which court has jurisdiction. The median income figures come from the Census Bureau. If you remember your math, the "median" income for a state is not the same as the "average" income (the "mean" income.) No, the "median" income is the income you find if you make a list of all the incomes for the state in a vertical column and you pick the one half way up, in the dead center. Also, the new law instructs us to look at the "household" median income.
As a result, we are looking at the total income for everyone in the household combined, no matter who is filing the case.
If you are below median income, you qualify for chapter 7, right? Not so fast. What the law really says is that if you are below median income, then there is no "presumption of abuse" of the Chapter 7 provisions. There could still be abuse, but it is not "presumed."... just because you are below median income doesn't really mean you get a Chapter 7 admission ticket. It just means there is no presumption against you. But all this is just a technical reading. On the street, as it were, if you are below median income you are unlikely to be hassled by the U.S. Trustee's office, which seems to be in charge of asking the court to move you from a Chapter 7 to a Chapter 13. Creditors can make this charge as well, but rarely do.
What if you are over median income? Well, you know being over median income produces a presumption of abuse of the Chapter 7 process, and you could get locked out of Chapter 7 and be looking at a Chapter 13. But it's only a presumption and you might be able to rebut the presumption by passing what is called the Means Test.
http://www.bankruptcylawhelp.com/Bankruptcy/Florida-Bankruptcy-Income-Limits.aspx
The first step is simple: If your current monthly income is less than the median income for a household of your size in your state, you pass. Period. You're done. You do not need to complete the rest of the means test. You can file for Chapter 7.
http://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-means-test-eligibility-29907.html
the current median income for household of one in FL is $41,065, before taxes. that's $3422 per month. does she live alone? (IMO, no). if she, for example, lives with two people the median income for a household of three is $53,820. if she lives with two handlers is their combined income above the median? (IMO, yes)
chapter 13 is for debtors owing less than $307,675 (who agree to live on a budget created by the IRS so they can make payments to their creditors, oops).
FCA alleges that her debt is $793,341. disregarding JB's $500,000 claim brings her debt under the chapter 13 limit. recognizing his claim puts her above the chapter 13 limit (so she goes chapter 7 instead and is not threatened with the agony of paying what she owes)
http://www.americanbar.org/content/..._legal_guide/bankruptcy_7_13.authcheckdam.pdf
I can't tell if taxes and IRS levies are non-dischargable for chapter 7 (the IRS is the first in line for chapter 13 payments). is the IRS listed as a creditor because something she filed is pending but there's no decision yet so they're still a creditor? something was 240 days and something was 3 years so the IRS should forgive the $68,000? is it the chicken or the egg, the IRS forgives so subtract that from her debt or the bankruptcy discharges it before the IRS decides? $793,341 - $568,000 = $225,341. big difference. huge
