passing mean test

[jerryjones]

I am thinking of filing for Banruptcy. I make lot of money way more then median amount IRS allowed ( almost double ). But I have very high mortage and very high car payments and health insurance payments for family of four and I am in very high income tax bracket.
My unsecured debt is close to 190000. ( i cant believe I have this much)
I owe more money then value of my house, so there is no equity. I owe more money then the value of my car. ( very bad financial advice, long story).
I talk to few attornies, they all have different views, but they did say to do
Mean test for disposable income.
So I did mean test myself by printing B22A ( www.usdoj.gov/ust/ ) form and online from this website which very good ( www.legalconsumer.com)
I put all the amounts which are stated in website for family of four. my DI is always come to negative or less then 167 allowd for chapter 13. What I am trying to say that I am passing mean test everytime I take.

My question is can I still file for chapter 7 ? Can truste question me why I have too high of mortgage or car payments?
After reading so many airticles online I do not see any where that says that truste can object my car payments or mortgage payment.

ANy reply will helpful..

[Walnut]

I think there is a good chance that you could pass the means test, show no DI and still get bounced into a 13. Twice the median and a luxurious house and cars and $190K of unsecured sounds like you were livin la vida loca. Expect a thorough examination (make sure they wear rubber gloves) should you try for a 7. Wish I could tell you something better, but the fact that the attorneys referred you to the means test instead of offering to take your case and doing that himself, tells me they don't hold out a lot of hope.

[jerryjones]

No. They wanted to do mean test themselevs. but just hack of it I tried to do myself to understand more about mean test. I am going through attorney and he is going to do it for me. And they he will decide if I qualify for 7 or 13.

[lrprn]

No. They wanted to do mean test themselevs. but just hack of it I tried to do myself to understand more about mean test. I am going through attorney and he is going to do it for me. And they he will decide if I qualify for 7 or 13.

The two issues you are likely to run into is that you are a high-income filer with a very high amount of unsecured debt. No matter which chapter you file, both will encourage the trustee assigned to your case to look at your situationfar more closely than they would at a a no-asset, low income filer to ensure there is no fraud involved.

Good to hear you have met with one attorney. We would encourage you to meet with at least two more (free initial consultations) before retaining a lawyer. Meeting with a few more will go a long way to helping you understand what the best options are in your case. Hope you will keep us posted on what you decide to do - hang in there!

[CATCHMEIFYOUCAN]

Just my 2 cents:

I was working 2 full time jobs which put me over the median (double time), so I filed for Ch13, figuring I would probably have to pay back something had I filed for Ch7 granted the amount of money I was making and the amount a debt I filed for (filed for $65,000 AND I was making about $60,000). When I took the means test (as many people seem to think as a "fail," I was negative $65.00) however, schedule I and J proved I could pay back $800 a month. Well, given the new laws, my lawyer proposed $250 payback, after all "the NEW LAW is THE NEW LAW - the MEANS TEST, proving I had no money to pay back) so he proposed I pay back $250. The Trustee Objected because of schedules I and J. GO FIGURE, so much for the new law! The judge decided I submit another plan or quit one job. THAT ONE JOB, was the deciding factor to pay back $800 the next 5 years or NOTHING if I quit one job and could convert to Ch7. Well, it made sense to owe NOTHING and just quit one job for a few months. So I converted and it finally happened, sopposedly I'm discharged if I'm reading PACER right! I agree with IRPN they will look at your case very closely since you have a very high amount of unsecured debt. I thought they would be looking at my case very closely too since all my debt was literally incurred by gambling! I even had acquired a new credit card for $10,000 a few months before I filed!

Good Luck, Catchmeifyoucan

[bige1030]

I think there is a good chance that you could pass the means test, show no DI and still get bounced into a 13.

I forget where I read about this, but there are people in the bankruptcy community that lament the means test in the new law. There was one trustee somewhere who said that he used to make debtors with secured luxuries give up the luxuries and fund a 13 plan, but he can't anymore because the means test allows for the secured debts to be considered legitimate expenses.

Other trustees might still be bouncing these people into a 13, but there are some that really do feel like their hands are tied.

[jerryjones]

This is getting very interesting.. My attorney did mean test and I pass test very easily. Mean test was done by all the requlations setup by usdoj. My attorney dont see any problem with me filing chapter 7. I will update more information as I get.
Just One note I know mean test is very mean, but it is helping lot of people who makes more money then setup by usdoj (median)..becasue there is no such rule that it says what kind of secured dept you can keep and how much.