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Matrix- A list of names and mailing addresses of all the creditors listed in a bankruptcy petition, the Internal Revenue Service, and the debtor (so that they will be mailed the same notices sent to the creditors) that must be filed along with the bankruptcy petition. In both districts it must also be on a disk. Means Test- BAPCPA established a "Means Test" for debtors who want to file for Chapter 7 relief. The purpose of the means test is to determine if a debtor has the means to repay general unsecured claims. If the debtor's household current monthly income is at or above the applicable state median income then there is a presumption of abuse and the debtor may not apply for Chapter 7 relief and their case could be subject to a motion to dismiss or they would have to convert to a Chapter 13 case. The presumption of abuse can only be rebutted by proving "Special Circumstances" that would justify additional expenses or adjustments to the current monthly income. Section 707(b) Bankruptcy Code. Median Family Income- The U.S. Census Bureau reports the state median family income for each state by family size. The debtor's "current monthly income" (defined above) is multiplied by 12 and compared to the applicable state's median family income for the appropriate household size. If the debtor's current monthly income is less then the state's median family income the debtor is protected by the safe harbor and the means test will not apply. If the current monthly income meets or exceeds the state's median family income then the means test formula will have to be applied to determine whether the debtor is presumed to be ineligible for a Chapter 7 discharge. Meeting of Creditors- Approximately 4 to 5 weeks after the bankruptcy petition is filed, the debtor will attend a meeting with the case Trustee, generally known as the "First Meeting of Creditors" or Section 341(a) Meeting. See 11 U.S.C. §341. In most instances, no creditors will actually attend the meeting. The meeting is usually brief, routine, and uneventful with the Trustee asking the debtor a few questions about their petition before closing the meeting. In the Eastern District, the meeting is held at 271 Cadman Plaza East, Brooklyn, NY 11201. In the Southern District, the meeting is held at 80 Broad Street, New York, NY 10007, 4th Floor. No-asset Case- Where all of the debtor's property is exempt, the debtor has no assets that the Trustee can distribute to unsecured creditors. Property exemptions must be claimed on Schedule c. |
Bankruptcy Glossary of Terms
Part 5 of 9