Means Test question

[Christine]

Okay.. I have to find out if I'm interpreting this correctly. The values of my income on the means forms show me making about $666 more a month then I do. My atty said it's because it's calc'ing an annual discretionary bonus I received in March. This bonus is being divided by the 6 month look back period and then attached as a monthly amount because they multiply it by 12. Okay.... so this then makes it appear like I got an $8K bonus, not the $4K I got. I don't get a bonus every 6 months- only once a year AND it's likely I won't get one next year. This skewed my income big time and the proposed payment makes me have only $200 a month for food/toiletries/incidentals/home-car repairs/entertainment/healthcare (which my RX's are $60 a month min), etc. Why would the means test inflate the income in this manner??? Why would that amount be multiplied by 12 for a yearly income?? And lastly, why would no one point this out to the powers that be for revamping???

[newbie2]

Those calculations don't make sense.

If your bonus was $4000 and it's a once a year bonus, that equates to $333 per month. I would have another long talk with your attorney, fax him something if need be showing him the detailed breakdown so something isn't being misunderstood.

Also, perhaps he can argue that it won't come in to play next year. A letter from your employer may help.

Let us know how it goes. Something surely doesn't seem correct. Frankly, if you can hang on a couple of more months I would wait until October 1st to file.

[lrprn]

Those calculations don't make sense.

Newbie, this is how the revised bankruptcy law FORCES the calculation of income for the Means Test. All that matters is the six-month lookback and what income comes in during that time. If you received a one-time bonus during that time....well....too bad - it counts. And then because you double the six-month income, that doubles the bonus. The new bk law forces Christine to figure her income for the Means Test this way. You can thank most of our 2005 Congress for voting for this unfair mess.

Christine, the only option you have is to delay your filing so the bonus drops off your six month income figures. Otherwise you are going into Ch 13 with an artificially inflated income which could prove disastrous trying to make your payments on time the first year.

[CindyLou]

Yep, that's how it works! they take the TOTAL of the last 6 months and multiply by 2 then divide by 12. to get your monthly. So that makes your bonus worth double. Is S%^Ks! But thats the way it works. You may need to time your bk to where the month when you get your bonus fall off the calculation.