Means Test and how it effects 36 or 60 month plan

[signal]

A lawyer told me the other day (Florida) that if you pass the means test but do a Ch13, then your on a 36 month plan. He also said he was 100% (batting average) for getting people on 36 month plans since they changed the laws in 2005.

Is this true? If you can pass the means test but say aren't able to do a Ch7, you can get a 36 month Ch13?

[MSbklawyer]

A lawyer told me the other day (Florida) that if you pass the means test but do a Ch13, then your on a 36 month plan. He also said he was 100% (batting average) for getting people on 36 month plans since they changed the laws in 2005.

Is this true? If you can pass the means test but say aren't able to do a Ch7, you can get a 36 month Ch13?

Yes. It is true. And you can extend you plan out to as long as 60 months if you want smaller payments.

[UpsideDownMI]

Line 17 of form B22C addresses the required length of your plan. In short, you must be under the median income to qualify for a 3-year plan.

[flower04]

Yes, this is true. we are proof of this. OUr median income is OVER for our state (by about $2k) but our means test was negative, showing we have no assests. We are in a 36 month plan.

[justbroke]

Is this true? If you can pass the means test but say aren't able to do a Ch7, you can get a 36 month Ch13?

Passing the means test should have nothing to do with the applicable commitment period (ACP) for a Chapter 13. The ACP dictates what the minimum term you need to be in your Chapter 13. This is predicated by being either under the median (36 months) or over the median (60 months).

I don't know how the lawyers get 36 months for a debtor(s) over the median.

[MSbklawyer]

I don't know how the lawyers get 36 months for a debtor(s) over the median.

When he said he "passed the means test", I took that as meaning under the median.

If you're under the median, you can still file for 13 if you need to catch up on an arrearage or cram down a vehicle. The applicable commitmentment period is 36 months for under median, but you can go longer.

There are also situations where the debtor is above median, but has a negative DMI. For instance if they have HUGE out-of-pocket medical expenses. Courts allow these people to go chapter 7 as well. It's pointless to put them in a 13 with 60 monthly payments of $0.

[justbroke]

When he said he "passed the means test", I took that as meaning under the median.

If you're under the median, you can still file for 13 if you need to catch up on an arrearage or cram down a vehicle. The applicable commitmentment period is 36 months for under median, but you can go longer.

There are also situations where the debtor is above median, but has a negative DMI. For instance if they have HUGE out-of-pocket medical expenses. Courts allow these people to go chapter 7 as well. It's pointless to put them in a 13 with 60 monthly payments of $0.

You know what... I forgot all about a landmark case in which a person with $0 in disposable monthly income (and likewise a projected disposable income of $0.00) actually has no "applicable commitment period" (ACP). I actually liked that ruling, which I think was in Ohio (no time to research right now).