Form B-22C Chapter 13 Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income
INSTRUCTIONS : STATEMENT OF CURRENT MONTHLY INCOME AND CALCULATION OF COMMITMENT PERIOD AND DISPOSABLE INCOME (Form B-22C)
• The Form B-22C Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income is a standardized form associated with a bankruptcy filing to facilitate the calculation regarding whether a debtor is an above-median income individual. In essence, the form is used to create a comparison of the debtor’s income over the prior six months before bankruptcy against the state’s, in which the filer resides, median income. The prior six months is known as the “Current Monthly Income” or CMI; if the debtor is found to have an above-median income, than the Bankruptcy code will provide a calculation, known as the “Means Test” to determine if the debtor has enough valuable income to be forced into a Chapter 13 Bankruptcy filing.
What does the Form B-22C Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income Consist of?
• To facilitate the calculation, the court will use the Form B-22C Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income. The form, which consists of six pages, requires the filer to first report their income. This section of the form will ask various questions concerning your income, including information regarding your gross receipts, business income, gross wages, salary, tips, bonuses, rent/property income, interest, pension income, unemployment compensation, income derived from investment and all other sources of income. Following the satisfaction of this information, the form will provide a means for calculation, similar to that of a basic tax return. Once your income has been calculated you will proceed to Part 3 of the form, which will ask questions to determine your disposable income.
• Part 3 of the form is fairly short, however, the subsequent section, the calculation of deductions allowed under bankruptcy code, represents the bulk of the form. All questions regarding deductions, allow the filer to reduce their income; this portion of the form is crucial when calculating your final, net disposable income found at the bottom of the page. Once your net income has been calculated following the obtainment of all allowable deductions, the coordinating bankruptcy court or judge will evaluate whether or not you qualify for a chapter 13 filing given your particular state’s median income level.
Form B-4 List of Creditors Holding
INSTRUCTIONS : CREDITORS HOLDING 20 LARGEST UNSECURED CLAIMS (Form B-4)
• A Chapter 13 Bankruptcy is a debt repayment plan; in order to filing for this type of bankruptcy the individual must be employed so they can make regular payments to the Bankruptcy Court. The payments offered by the filer are then distributed among the individual’s various creditors. In most instances, an individual will be required to file this form of bankruptcy if they can pay at least 25% of their debts given their disposable income and savings. If the individual is approved for a chapter 13 filing, they will make payments for up to 5 years; the court will negotiate the filer to pay a portion of the total debts during this time.
What is the Form B-4 Creditors Holding 20 Largest Unsecured Claims?
• The Form B-4 Creditors Holding 20 Largest Unsecured Claims is the official legal document of a bankruptcy filing case that formally lists your 20 largest creditors to whom you owe the largest amount of unsecured debts. Unsecured debts refer to any debts you have assumed that are not backed by a tangible form of collateral. In most situations, unsecured claims that are listed on this schedule include forms of consumer debts, such as credit card debts or debts that arise from personal loans.
What does the Form B-4 Creditors Holding 20 Largest Unsecured Claims consist of?
• The Form B-4 is simple in nature; it contains only 1 page, which is repeated in uniformity. As stated earlier, the form is meant to signify your most severe unsecured debts. As a result, the form only requires you to list the name of your creditor, along with the complete mailing address, the name and contact information of the particular employee or agent or department of creditor who handles your account and the nature of your particular claim. The nature simply refers to what kind of debt it is—is it a trade debt, a bank loan, a government loan, credit card debt? Following the input of this information you will be required to list the amount of the debt and whether the claim is contingent, unliquidated, or disputed.
