The B22 form is a complicated form and you need to fill out the ENTIRE form before a decision is determined regarding the means test. The B22A form is for determining elgibility for Chapter 7 and B22C determines how much money you have to pay in to a chapter 13 plan. I have NOT filed for bankruptcy yet so I CANNOT speak from actual experience and I’m meeting with a CCCS counselor next week(Greenpath) to try and determine a course of action.
If your income is below the median standard then you don’t have to fill out the entire B22A form you qualify for Chap. 7. Under certain circumstances you can ask the court to make an exception if you have unusual hardships such as extremely high medical expenses. Double check what I am saying with the NOLO books as well as www.legalconsumer.com.
There is a form that you can fill you when you do your taxes so that you will not have the amount of debt canceled to be charged as income. A form 982 must be filled out. It will be easier if you have a copy of all of your bills and all of your assets. I have used a CCCS agency and depending on the person in charge of your account, I found that it was something that I could do myself.
The company I use is going to insist that any settlement will not produce a taxable event, further they shield me from the impact of potential judgment liens.
If I were you, I would request that in written due to to the fact that reporting a debt forgiveness over the amount to $600 must be reported to the IRS by the company that is writing it off.
Well aware of IRS rules, but it can’t be debt forgiveness if the debt isn’t validated.
Most CCCS work closely with the creditors in conjunction with the borrower. They typically work against the borrower, they tend to eliminate or reduce the interest for the borrower and put the borrower on a payment plan. Which the borrower is under no obligation to stick to the plan and eventually fall off the plan and tend to free up cards only to grt further in debt.
I personally dont trust the decisions that they give you, yes they probably will help you be better off, however there are better services and options. Ones that will help you make a decison that is going to help your wallet not theirs. Rember any amount discharged using a CCCS must be reported as income on your taxes.