Avoiding the Means Test - And Other Reasons to File Under Chapter 13
Back in February, we generated some inter-blog discussion of the possibility and wisdom of filing petitions strategically under Chapter 13, since the means test would not be required to convert such a case to Chapter 7.
Recently, Tim Truman, a Chapter 13 Trustee for the Northern District of Texas, included that very item in his list of 50 reasons to file under Chapter 13--and without any mention of the potential risks we discussed.
Truman's list also includes the ability to repay non-dischargeable taxes, lower filing fees under Chapter 13, and the ability to dismiss and re-file Chapter 13 cases indefinitely, so long as each lasts for at least two years.
Truman also points out that our fees are typically 3 to 4 times higher in a Chapter 13 case, and those fees can be collected and accounted for by the Chapter 13 Trustee.
Judge Lewis Killian, the only bankruptcy judge in the N.D. Florida put into the local rules that when converting from Ch. 13 to Ch. 7, debtors must prepare the means test.
Note: If one judge has injected this requirement into local rules, it seems likely that he's not alone. Have others encountered this rule? Has anyone attempted to challenge it?
Is there a link anywhere to the 50 reasons?