Final Brush Up

Question 1

Bankruptcy Ch 7 filing dismissed or converted to a Ch 13 filing ____________

Answer 1

60 times the debtor’s avg monthly disposable income (after deducting allowable expenses) exceeds $15,150

Below will not cause dismissal of Ch 7:

*If 60 times a debtor’s avg monthly disposable income (after allowable expenses) is at least $9,075 but less than $15,150 and the debtor is only able to pay 10% of unsecured claims, the debtor can file for Ch 7. It is only debtors within these financial figures who are able to pay 25% or more of unsecured, nonpriority debts that are subject to conversion or dismissal for abuse.

Question 2

PSC =21% flat tax rate

Answer 2

Credit not available to PSC = EIC, Child and dependent care credit, AOC

PSC

Accumulated Earnings Credit, DRD are subtracted in arriving at accumulated taxable income.