Means Test. They factor in expenses they know you wont have after you file????

[bobby125]

I just thought of this while reading another post and decided to throw this out there.

I am awaiting my 341 filing and in calculating my means test, my lawyer came up with a payment of $743 a month.

However, he took into account a negative cash flow of $230 on a rental property that I am giving back in the 13.

Is it not amazing that you can calulate in a loss that you know you are not going to have because of the 13?

I am not complaining, mearly commenting. Would the same hold true on a car? If you were paying $500 a month but were giving the car back, would they still let you factor that in?

Just some thoughts

[Anj]

hmmm - well if I'm reading this correctly - then I wonder the same thing.
When I filed - we calculated a mortgage payment of 1880 with the 1st & 2nd lumped together...
My 1st is now down to $1200 because of some "fees" being lowered - that's $300 - and the trustee hasn't asked for it yet - so I am curious how long it will take for him to ask or if ever. I can't imagine having $300 "disposable income" - wow, can u imagine - 300 whole dollars a month that isn't promised to someone and you could actually buy your kids the shoes they need - or the name brand detergent - shocking, I know.

[Jman30]

I cant imagine that they would count a car into your payment that you are surrending.

Maybe there is some special rule or law for rental properties??

[anonymuse]

The means test is look backwards at the last 6 months; however, setting up your plan should be based on the current and future income and payments.

[aa06a47]

Yes, this is a fantastic question that has been before the courts recently. One of the cases I read about was with a person claiming a car deduction amount on the means test even though the car was paid for. The judge ruled he could not count the car as an expense because it was paid in full.

The other case, some guy was trying to use a house payment as part of his expenses even though he no longer had the house. His claim was it was an expense in the 6 month period prior to filing. In that decision, the debtor also lost.

It all seems cut and dry to me, if your not paying the expense, how can you claim it......however, there were lawyers willing to go to court based upon the flimsy way the law was written.

[SinkingFast]

Yes, this is a fantastic question that has been before the courts recently. One of the cases I read about was with a person claiming a car deduction amount on the means test even though the car was paid for. The judge ruled he could not count the car as an expense because it was paid in full.

The other case, some guy was trying to use a house payment as part of his expenses even though he no longer had the house. His claim was it was an expense in the 6 month period prior to filing. In that decision, the debtor also lost.

It all seems cut and dry to me, if your not paying the expense, how can you claim it......however, there were lawyers willing to go to court based upon the flimsy way the law was written.

We had one attny during Consults that was gonna do that with our house. We were/are letting the house go in BK. That attny asked how long we owned the house. 14 years. He felt that because we'd owned the house longer than 5 years he could annualize the payments forward.

He was the only one. All the others said any expenses associated with the house go with the house.