Author Topic: BK7: Going Nuclear? An Essay.  (Read 1394 times)

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BK7: Going Nuclear? An Essay.
« on: May 24, 2014 12:15:14 PM »
Going Nuclear: BK7

Many of us discuss BK7 as an option to fighting the debt collector. BK7 is not for everybody. Some of us have assets to protect. Some of us cannot qualify based on household income, etc.

Most people that look at the BK7 option want to know at least two things. The first thing is, Why would I want to file BK7? The other thing is, Can I qualify for BK7? Letís begin by discussing qualifications. Here are a few terms Iíll use:

Means Test (Form B22A): The Means Test simply uses your actual household income to calculate your ability to pay hypothetical expenses. The hypothetical expenses are based on Census data. This data is located at:

Schedule I (Form (B6I): This is the form to report your gross pay and take home pay.

Schedule J (Form (B6J): This is the form to report your ACTUAL expenses. This form also reports what is left of your take home pay after these expenses are paid.

Schedule C (Form (B6C): This form letís you claim assets as exempt from your bankruptcy estate. The trustee cannot take these assets and sell them.

Note: Use an Internet search to find these forms and spend some time on your US District Bankruptcy Court website. There is a wealth of information.

In order to qualify for a Chapter 7 Bankruptcy (BK7), you will first need to pass the Means Test. I donít recommend starting with this form, because you need to know your income to be able to fill it out. Go ahead and fill out Schedule I first. You will need pay stubs to do it. The form is for self exclamatory for the most part. There are also instructions for filling it out. I would read them, rather you need to or not.

Now that you have completed Schedule I, go ahead and complete the Means Test. This is the most time consuming and confusing form there is, in my opinion. Remember the expenses on this form are based on regional Census data. You can claim the expenses rather you have them or not. It kind of reminds me of a generic Golf scorecard with a blank Par Column. You go from course to course and fill in the Par values they tell you at each course, but you are not keeping an actual score yet. Fill out the entire form and read it (and the instructions) carefully. If you passed, go to Schedule J!

Schedule J is your expenses. The form is self exclamatory for the most part. There are also instructions for filling it out. I would read them, rather you need to or not. Be sure to read the form CAREFULLY! Also, donít forget to report tiving. It is an allowable expense. Even if you have not tived in the past as long as you intend to in the future, you can claim it on this form. Spend some time reviewing it after you are done. Take a break first and go back to it with fresh eyes.
Finally, itís time to fill out Schedule C. I like this site for researching this content:  I also like the books by Nolo Publishing. Most libraries have them or can get them. I bought used ones cheap online. I highly recommend getting them. Determine what exemptions and or assets you are allowed then report them here. I set my values at fire sale rates.

After you get all this done ask yourself, ďDid I pass the Means Test?Ē In addition ask, ďDo I have any non-exempt assets or excessive equity in any asset?Ē Also ask, ďDo I have any disposable income?Ē If you answered: yes, no, no; to these questions, then put a BK7 card in your deck.

Why would you file BK7? Refer to the previous paragraph. Are you NOT Judgment proof? (Search this topic on DB). Are you unwilling or unable to defend a lawsuit? Are you broke after paying bills? Are your only assets exempt or can you live without your non-exempt assets? Nobody can answer these questions for you. YOU will need to make the decision. Now you have the information you need to do it!

I know this is a pretty basic summary of the BK7 process. Yes there are many, many, many things to consider, but everybodyís situation is different. You should DO YOUR HOMEWORK and try a free BK7 consultation with an attorney after youíre done.

Remember BK7 is not a financial death sentence. You are allowed to restart life at a basic level. I use the Schedule I & J as the basis for my budget now and try hard to live within my means. I still have my house, a decent car, and all my tools and sport equipment.

If you qualified congratulations! You now have the BK7 Trump Card in your deck. It is up to you what you do from here. Chose wisely and good luck!
Pro Se BK7 Discharged. MTC ARB 2-0. MSJ 1-1.

I am a debtor. Nothing I can do will ever change that. When confronted by a creditor in a court of law or Arbitration forum, I will exhaust all legal and contractual means to protect family and property. I will never act in bad faith or attempt fraud to escape an alleged debt. My defensive or offensive strategies will always be based on my intent and belief in doing what is right and fair.

BK7 Essay:,26562


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Re: BK7: Going Nuclear? An Essay.
« Reply #1 on: May 24, 2014 02:41:04 PM »
Failure of the means test does not result in automatic dismissal.

Certain jurisdictions hold that the court retains discretion as to whether or not the case should be dismissed.

say nope to dope...ugghh to drugs...and God bless Ronald Reagan!!!

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this really is not a spectator sport ... you have to know what your doing ... or you will get in very hot water very quickly


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Re: BK7: Going Nuclear? An Essay.
« Reply #2 on: May 24, 2014 02:45:29 PM »
I believe if the majority of your debts are business debts then the means test is not required.

Citibank and Amex suing you on your business credit cards in your name and the business name, then those may be business debts.