Median Income questions

[leftyf]

If I make about $5K over the median, will that generally mean I would be expected to pay the $5K to the trustee on a chapter 13? Or would I be expected to pay even more? Just wondering....
Also, I have an 18 year old who is graduating high school...will he count as part of the family size? He still lives with us and plans to go to college.
Thanks.

[CATCHMEIFYOUCAN]

Over the Median

If I make about $5K over the median, will that generally mean I would be expected to pay the $5K to the trustee on a chapter 13? Or would I be expected to pay even more? Just wondering....
Also, I have an 18 year old who is graduating high school...will he count as part of the family size? He still lives with us and plans to go to college.

I was over the Median $35,000 something, doesn't mean I'm going to pay $35,000 something. I had 2 full time jobs, after all my expensed were calculated. I showed I was negative $60 disposable income, HOWEVER, schedules I and J, showed I had $800 disposable, the Trustee wanted the $800 ! GO FIGURE.

If you still have someone as part of your household than yes, you are still paying for his food, clothes etc! Any money you spend on that falls withing the IRS standards, write it down. Thats less disposable income you have and less the creditors get paid in Ch13.

Best of Luck, CMIYC

[SinkingFast]

The college student issue and BK are a tricky situation.

Most Courts, if the child continues to live at home with you while attending college, then you can claim them as a member of the household for Median Income purposes. If the child goes away and lives at college, even tho you can claim them as a dependent on your income taxes, the BK Court doesn't allow them in your family member count. There have been numerous Decisions and Opinions on this matter all across the country.

You're really gonna need to run a Means Test or have an attny run one for you to know for sure which Ch you can file. $5K really isn't much so it kinda throws you into the gray area. If you have house payments that are more than your Schedules Allowable for housing, that right there could take care of the $5K.

Have you tried the Means Test Calculator to see how you'd do??

http://www.legalconsumer.com/means-t...ator/index.php

It's easy to do and a fairly accurate, quick and dirty indicator of where you'll stand.

[tofargone]

It's going to depend a lot on your trustee.

If you can say where you live ( what district ) someone might have experiance with the trustee. By what I have read some trustees try to sniff out every penny while others are pretty laid back.

Good luck

[leftyf]

Better go to CCCS...

Based on what that calculator is telling me, I can afford $1K/month on my salary that is $5K above the median...I may need to ask for a paycut.
If I include the windfall bonus I just received of $20K, which is extremely rare, I can afford about $4K/month, or all of my take-home pay. The last big bonus I got was...never. And I'm not expecting anymore.
Obviously doing something wrong...making about $80K with my median at $75K. Maybe the lawyer can figure it out for me.
Meanwhile, should I go see CCCS and get a manageable payment? It seems like it is about the same anyway...not sure anymore?

[leftyf]

I live in the Southern Ohio Bankruptcy district, I believe....anyone have any experience there?

[SinkingFast]

Probably one thing for sure you're gonna need to do is wait out the 6 months until that bonus drops out of your CMI.

As far as CCCS vs Ch 13,........... With a DMP, you don't get:

Automatic Stay protection
All your Creditors participate. In a DMP, some might not.
The Trustee can fix interest.
The Trustee sets the piece of the pie each Creditor gets.
You pay what your Disposable Income allows and at the end the rest is Discharged.

Ch 13 has lots of advantages that paying thru a DMP does not.

But, don't get ahead of yourself. You really need to Consult around. See what attnys have to say. $5K, if you're a homeowner and make a car payment or 2, is really, really very close. Until an attny runs a Means Test on your regular, normal income, I wouldn't plan one way or the other.

While you wait for the bonus to drop off, there's lots you can do to prep.

Consult around. Find your attny. Get your docs gathered.

Take care of medicals that you maybe put off. Repairs around the house. Auto maintenance. Buy clothes. That will help you get a fix on regular living expenses you may have been going without.

Increase your living expenses. Up your homeowner's or renter's insurance. If you don't have life insurance, get some. Same with medical, dental, vision. If you give to a Church, maybe give a bit more and make sure you contribute via checks. You want a record of your giving. Increase your retirement savings. Legitimate, acceptable, necessary living expenses.