Houston Texas Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 - Post 2005

• Category: Bankruptcy - Chapter 13
• State: Multi-State
• City: Houston
• Control #: US-BKR-F22C
• Format: PDF

Description

This form is for post 2005 act cases. Houston Texas Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 — Post 2005 In Houston, Texas, individuals considering a Chapter 13 bankruptcy must complete a Statement of Current Monthly Income and Disposable Income Calculation. This crucial document helps the court assess the debtor's financial situation and determine the amount they can contribute towards repaying their debts. The Statement of Current Monthly Income is a comprehensive overview of the debtor's income sources within the six-month period preceding the bankruptcy filing. It includes various sources such as employment wages, business revenue, rental income, pension, and any other forms of regular income. It is important to include all sources of income to ensure accurate calculations. Next, the Disposable Income Calculation is carried out, determining the amount of money the debtor has available to repay debts after deducting necessary monthly expenses. The calculation considers the debtor's average monthly income, housing and utility costs, transportation expenses, healthcare costs, necessary childcare expenses, and other reasonable and necessary expenses. It is worth noting that there are different types of Statement of Current Monthly Income and Disposable Income Calculation forms, each tailored for specific financial situations in Houston, Texas, following the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAP CPA). 1. Form 122C-1 — Chapter 13 Calculation of Your Disposable Income: This form is used when the debtor has regular income and their monthly income exceeds the state's median income. It calculates the debtor's allowable deductions, such as mortgage/rent, vehicle loan payments, insurance, taxes, and other necessary expenses. 2. Form 122C-2 — Chapter 13 Calculation of Your Disposable Income: This form is required for debtors with regular income when their monthly income falls below the state's median income. It involves a more complex calculation, taking into account various expenses, such as housing, utilities, transportation, childcare, healthcare, and other necessary monthly costs. These forms ensure that debtors' disposable income is accurately determined in compliance with the Chapter 13 bankruptcy requirements, allowing them to propose a feasible repayment plan to the court. In conclusion, completing the Houston Texas Statement of Current Monthly Income and Disposable Income Calculation is crucial when filing for Chapter 13 bankruptcy post-2005. Whether debtors have income above or below the state's median, it is essential to accurately report all sources of income and necessary expenses within the appropriate form, specifically Form 122C-1 or Form 122C-2, respectively. This process ensures transparency and helps create a realistic repayment plan that benefits both the debtor and their creditors.

Houston Texas Statement of Current Monthly Income and Disposable Income Calculation for Use in Chapter 13 — Post 2005 In Houston, Texas, individuals considering a Chapter 13 bankruptcy must complete a Statement of Current Monthly Income and Disposable Income Calculation. This crucial document helps the court assess the debtor's financial situation and determine the amount they can contribute towards repaying their debts. The Statement of Current Monthly Income is a comprehensive overview of the debtor's income sources within the six-month period preceding the bankruptcy filing. It includes various sources such as employment wages, business revenue, rental income, pension, and any other forms of regular income. It is important to include all sources of income to ensure accurate calculations. Next, the Disposable Income Calculation is carried out, determining the amount of money the debtor has available to repay debts after deducting necessary monthly expenses. The calculation considers the debtor's average monthly income, housing and utility costs, transportation expenses, healthcare costs, necessary childcare expenses, and other reasonable and necessary expenses. It is worth noting that there are different types of Statement of Current Monthly Income and Disposable Income Calculation forms, each tailored for specific financial situations in Houston, Texas, following the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAP CPA). 1. Form 122C-1 — Chapter 13 Calculation of Your Disposable Income: This form is used when the debtor has regular income and their monthly income exceeds the state's median income. It calculates the debtor's allowable deductions, such as mortgage/rent, vehicle loan payments, insurance, taxes, and other necessary expenses. 2. Form 122C-2 — Chapter 13 Calculation of Your Disposable Income: This form is required for debtors with regular income when their monthly income falls below the state's median income. It involves a more complex calculation, taking into account various expenses, such as housing, utilities, transportation, childcare, healthcare, and other necessary monthly costs. These forms ensure that debtors' disposable income is accurately determined in compliance with the Chapter 13 bankruptcy requirements, allowing them to propose a feasible repayment plan to the court. In conclusion, completing the Houston Texas Statement of Current Monthly Income and Disposable Income Calculation is crucial when filing for Chapter 13 bankruptcy post-2005. Whether debtors have income above or below the state's median, it is essential to accurately report all sources of income and necessary expenses within the appropriate form, specifically Form 122C-1 or Form 122C-2, respectively. This process ensures transparency and helps create a realistic repayment plan that benefits both the debtor and their creditors.