New Median Income / Allowable Living Expenses - Is there authority for the delay?
The U.S. Trustee has posted updated median income information and IRS standards for allowable living expenses, but the new numbers aren't slated to take effect until February 13, 2006. While the changes aren't dramatic-the increase in median income seems to be in the neighborhood of 3.4% for most states-there are inevitably some clients who will fall within that window.
Obviously, if your client isn't in a hurry and his means test results would differ depending on which set of numbers you applied, you'd simply delay filing until after February 13. But the reality of our industry is that many clients can't wait two weeks to file when they walk through the door.
Must a debtor faced with imminent foreclosure or repossession, but falling in the gap between the 2004 and 2005 numbers, choose between filing in time to invoke the automatic stay and qualifying for Chapter 7? And how can we safely and effectively advise clients in this situation, where there's a significant downside to either option?
Those questions, and the statutory language regarding the applicable numbers, have some practitioners questioning whether the UST's office has exceeded its authority in delaying the application of the new data.
