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Student loans in a divorce

When a couple gets a divorce the court will order an “equitable distribution” of the martial assets and liabilities. The court will divide the marital assets and liabilities 50/50 between the couple unless there are factors that would make an equal split inequitable. The first step in reviewing a case to determine the distribution of assets is to classify each asset and debt as either marital or separate property.

median income

The U.S. Trustee’s Office recently announced changes in the median income used in the Chapter 7 bankruptcy means test. This is significant since all Chapter 7 petitioners must pass the means test in order to qualify for Chapter 7. If an individual does not pass the means test their only bankruptcy option will be to file for either Chapter 13 or Chapter 11. The U.S. Trustee will typically change the median income figures twice a year, the recent changes became effective May 1, 2014. The next adjustment to the median income figures are expected to be announced in October or November of this year.