Question about the Means Test?

[kcfaninin]

Can anyone tell me if there is a standard amount that the judge/trustee allows for living expenses. Like how much for a car payment, groceries, clothing, gas, phone etc. Our attorney tells us we need to cut back on our living expenses to come up with more disposal income. Where is she getting her amounts on what is normal? Does it vary from state to state? I know the income median does. Is there a chart I can view somewhere to see if we fall in the normal range or if she is feeding us false information?

[eddiep]

yes there is, here is a link

http://www.irs.gov/individuals/article/0,,id=96543,00.html

[lrprn]

Can anyone tell me if there is a standard amount that the judge/trustee allows for living expenses. Like how much for a car payment, groceries, clothing, gas, phone etc.

The current bk law sets up required amounts for some expenses but not others.

Check here http://www.usdoj.gov/ust/eo/bapcpa/2...anstesting.htm for links to the required figures for your state's median income for family size, national standards for out-of-pocket health care expenses, and local standards for housing/utility and transportation expense costs. These must be used on the Means Test along with some of your real expenses.

Your real expenses are used to complete the Schedules forms.

The median income by family size and the other required expense amounts do vary state by state and some expenses allowed vary by family size as well.

Are you trying to lessen your expenses to increase your disposable income so you can file a 13 rather than a 7?

[kcfaninin]

We are 20 months into a Chapter 13 and wanting to convert to a Chapter 7. Income has gone down since filing and our living expenses weren't accurate at the time either. Our attorney had us "FUDGE" some figures to get them on the low side of what we actually spend. She wanted to get us to an 80% payback. Why, I'm not sure? Stated the trustee wouldn't approve the plan otherwise. We are now having trouble making the plan payments and want to convert to a Chapter 7. I took the sample means test and we are over the median income by $32,000, but our secured debt and unsecured (not including the mortgage) is 67,000. Lots of medical bills!! According to the means test, we passed for a Capter 7. Attorney states we don't qualify?!?!? We are meeting with a different one on Tuesday to get a second opinion. Can't imagine why we wouldn't qualify. My figures were accurate that I plugged into the sample test. I guess we'll see.