"One hurdle under the new law for would-be filers is a new means test based on the state median income. If someone earns more than the median, the court can require them to file Chapter 13 and pay back some of their debt. The current California median is $43,107 for a single earner and $70,172 for a family of four.
Although many bankruptcy critics saw this requirement as a way to catch cheaters who were hiding income or assets to avoid Chapter 13, it doesn't appear to have made a major difference so far.
Cerreto, the court clerk, said initial expectations were that no more than 10 percent of the filings under the new law would be forced into Chapter 13."
Monday, October 16, 2006
Court quiet a year after new bankruptcy law
Orange County Register reporter Mary Ann Millbourn reports that, although filings are down, the means test is not preventing people from filing.
