Expenses on the Means Test

[coopersmydog]

I've done the means test about 10 times online, and I keep getting different answers.

Here's what I understand, I'd love for someone to let me know if I'm on the right track or not.

My income is above the median income, so I have to complete the additional analysis. That analysis basically looks at my expenses and figures out how much money I have left at the end of the month.

I get to claim IRS standard expenses for things like food, clothing, vehicle ownership, utilities. Since I have a mortgage, and it's more than the standard expense, I claim the actual amount.

I get to deduct my monthly taxes as expenses. So FICA, STATE, FEDERAL, etc., all get included.

I think I understand that part. Here's the questions...

1. Do my student loans count as expenses?
2. Does my cell phone plan count as an expense?
3. Internet service?
4. What about home maintenance?
5. Car insurance


Depending on what counts on this test, I either have a couple hundred dollars of disposable income, or I pass the test and can file chapter 7. Just trying to figure out which.

[magyar123]

Yes to #s 1,2, and 5.
Include internet service in your utilities expenses.
#4 home maintenance possibly up to a certain amount.

[BROKENN]

I agree!

[coopersmydog]

Okay, here's my real world scenario. I'm in Missouri, family of 3.

Income (Including $5,000 Bonus) ~$80,000/year

Expenses:
Food, clothing, personal care - $1,151 - IRS AMOUNT
Mortgage, Taxes, Ins - $1,300 - Actual Amount
Housing and Utilities - $404 - IRS Amount
Vehicle Operation - $366 - IRS Amount
Health Care - $171 - IRS Amount
Monthly Taxes - $2,200 - Actual Amount
Cell Phone and Internet - $300 - Actual Amount
Health Ins, Disability Ins, heal care spending account - $420 - Actual Amount
Car Insurance - $110 Actual Amount
Student Loans - $150 - Actual Amount
Gym Membership - $30 - Actual Amount

Total Monthly Income - $6,667
Total Monthly Expenses - $6,602
Disposable Income - $65

This leads me to believe that I can file for chapter 7. Is my assumption correct, or is there some other "test" I must pass?

I'm looking to rid my family of ~55-60K CC debt, and keep our home. We have no equity in the house. It was only bought 4 months ago with a minimal down payment.

The only real assets we have are two cars that are paid for, both have over 150,000 miles and are worth less than $2-3K each. The remainder of our stuff is like everyone else. TV, stereo, cds, dvds, clothes, etc. But nothing significant.

Given my circumstances, do you think I'll qualify for chapter 7?

[danaf]

YES - very possible to qualify for a 7 while being over the median. There have been people on here who have done it. Most recent that comes to mind is Cali. The means test is only one part - then the schedules come into play.

The only thing - think about not reaffirming your home if you go for a 7. If you make your monthly payments ontime, you won't be kicked out. BUT if for some reason, your circumstance changes - you can walk away with no penalties. And being able to do so is priceless.

[rrockinggramma]

hide the gym membership elsewhere in your figures. Or add that to your disposable income. No trustee will allow that as an expense.

[liz417]

I was told that Student Loans couldn't be calculated into the monthly expenses, that they would be in forebearance for the duration of the ch 13 (I'm in Ca.).

[kmb]

My student loans did not go into forebearance when we filed and were required to be paid through our plan, so I think they are considered debt versus an expense listed on your means test. My "required" student loan payments are higher than our monthly Chp 13 payment, but they are getting about 70% of our monthly payment.

[sassiebaz]

regarding student loan....can you take out new loans while in a CH13 repayment plan?

[njguy1972]

With Student loans the 1st lawyer I went to said they would be on hold for the 5 years. My current lawyer is adding it as an expense to be paid outside the plan.

The trustee may object but at least the 2nd lawyer is trying to work more in my favor.

[BrokeFlorida]

What website did you go to?

I JUST retained an attorney, and am trying to figure out what expenses are allowed to determine disposable income, and I'm SO lost...

[optimistic1]

I JUST retained an attorney, and am trying to figure out what expenses are allowed to determine disposable income, and I'm SO lost...

try www.legalconsumer.com