Disposal Income, is that only for unsecured?

[klux]

Has anyone found that the allowances they give for the means test are very generous? I know I don't spend what they say, I mean 1,546 for food, clothes, personal care, household supplies, and miscellaneous. When they compute the actual means test, will the attorney use the standards or my numbers since they are lower? I just did the means test and with the standards I come up -$1,705.64 for disposal income, isn't that wierd? The disposal income, is the amount that would go to unsecured, correct? I'm just trying to understand this. So I think, I would just be paying back up secured creditors 100%, am I right?

[doglover]

Good question...I hope someone can help because I'm interested to know this too.

[aa06a47]

Has anyone found that the allowances they give for the means test are very generous? I know I don't spend what they say, I mean 1,546 for food, clothes, personal care, household supplies, and miscellaneous. When they compute the actual means test, will the attorney use the standards or my numbers since they are lower? I just did the means test and with the standards I come up -$1,705.64 for disposal income, isn't that wierd? The disposal income, is the amount that would go to unsecured, correct? I'm just trying to understand this. So I think, I would just be paying back up secured creditors 100%, am I right?

You will need to subtract your secure debt from the 1705 (house, rent, car payment, 401k loans, etc) to get your actual disposible income. The disposible income would be the amount paid to the trustee/unsecured.

[CATCHMEIFYOUCAN]

Just to add to the list:

You will need to subtract your secure debt from the 1705 (house, rent, car payment, 401k loans, etc) to get your actual disposible income. The disposible income would be the amount paid to the trustee/unsecured.

Utility Bills
Car Insurance
Future Car Maintenance: Oil Changes, New Tires?, Brakes?,
Timing Belt?
Land Line?
Internet?
Cable?
Cell Phone?

Think of everything possible to eat away at that disposable income - within the reasonable amounts of course!

Unfortunately I'm single, and I'm frugal. I only pay $625 for rent even though the standards allow $1500! Anyways, it is quiet possible to live below the standards depending on your situation!

Best of Luck, Catchmeifyoucan

[klux]

I'm confused, If my disposal income is already negative with the standards, then I substract the secured expenses .......then I just get more negative, that doesn't make sence. Did you think I said I had positive $1705 for disposal?

[JollyGG]

I'm confused, If my disposal income is already negative with the standards, then I substract the secured expenses .......then I just get more negative, that doesn't make sence. Did you think I said I had positive $1705 for disposal?

For your secured expenses you should be using acutal expenses not the irs standards.
You should also only be including debt that will not be discharged (with some exeptions, for example when you want housing or vehicle expenses to keep you in a chapter 7 but you plan to discharge that debt)

[RickInMich]

JollyGG,

I was going to ask that exact question. We, too, are negative if we include the two mortgages (1st and 2nd.) I'm not sure we want to keep the house, but at this point I don't want to exclude the possibility of keeping it. So do you think it's okay to say we're going to keep the house to make sure we stay in Chapter 7 but then if 3 months down the road, after discharge, we decide to let it go? Because honestly, at this point I'm just not sure. We may do okay once all our debt is discharged. But looking at everythign, it's going to be close.

Rick

[JollyGG]

JollyGG,

I was going to ask that exact question. We, too, are negative if we include the two mortgages (1st and 2nd.) I'm not sure we want to keep the house, but at this point I don't want to exclude the possibility of keeping it. So do you think it's okay to say we're going to keep the house to make sure we stay in Chapter 7 but then if 3 months down the road, after discharge, we decide to let it go? Because honestly, at this point I'm just not sure. We may do okay once all our debt is discharged. But looking at everythign, it's going to be close.

Rick

As you are unsure if you want to keep the house or not, but you need it for the means test what you will want to do is indicate that you want to reafirm when you file, but then just never follow through and get the papers in. I haven't seen on this board where anyone has had problems with doing that with a home.
Now be aware, that under the letter of the law you need to surender, reafirm, or redeam. However, as a practical matter as long as you keep you payments current the bank is not going to forclose on your home.

[klux]

When I filed a chapter 13 before (old law), I did not have to reaffirm my mortgage or my vehicles. I just kept paying them. The arrears from my mortgage got paid through the plan, and I paid the monthly payments that came due after filing, such as file in October, start paying mortgage November. That's what happened with me.

[jaina]

For your secured expenses you should be using acutal expenses not the irs standards.
You should also only be including debt that will not be discharged (with some exeptions, for example when you want housing or vehicle expenses to keep you in a chapter 7 but you plan to discharge that debt)

Do they verify this information? I don't want to eat ramen noodles for 5 years and not be able to buy Christmas/birthday presents for my family.