Means teast/cram down question. Please help!

[95kindebt]

We are getting ready to do the means test on our own. We have a 2002 tahoe that we bought in 2004, and we plan to cram it down under the ch 13. The payment is $515 a month.
Do we include that in our "expenses" or do we "ignore" it and it doesn
t factor in to the expenses, making the DMI $515 more?
Thx

[optimistic1]

Well first off, I am assuming you are over the median, otherwise you are wasting your time with the means test.

You would include it in your expenses as it is without cramming it, then, when you draft your plan, the new car payment would be factored into your plan with a lower interest rate and cram down amount, it would effectively increase your DMI so that more creditors can get some money.

I am kind of in your situation, as I am trying to figure out the same question, but instead of the means test, it's Schedule J.

Guess I will have to wait until the paralegals fill out the petition and have me sign it.

[95kindebt]

thank you, yes, we are above the median. We plan to file in late october.

[justbroke]

As optimistic tells you, you include the "contractually" due payment on your Form B22C (Means Test)... at the $515. The Form is a current snapshot, and unless and until you actually get the cramdown... it is $515. (Your Form B22C will actually not change if you do get the cramdown.)

Also, as eluded, your Plan would show the cram down amount with new interest rate (based on the Till rate). This may give you more money towards your DMI and a greater dividend to unsecured creditors.