Means test show me with a negative number??

[Nightowl805]

When doing the means test for here in California, I do not qualify under median income. But when I attempt to qualify under deductions allowed...My monthly number is negative at 2500 and my 5 year number is of course negative which shows I should qualify.

My question is, will the trustee accept a negative number especially if its this high??

Thanks in advance.

[SUB]

Are you using your actual expenses or your "allowed living expenses" based on IRS standards?

[Nightowl805]

Are you using your actual expenses or your "allowed living expenses" based on IRS standards?

Everything is allowed expenses except rent which is 1700 (1285 is allowed here in CA) which puts me -1425. I f I get the house I am trying to get my mortgage payment will be 3600 including PITI will put me -4000 per month. The house will have less than 25,000 equity. I am trying to file in early 2009 after I due my taxes...I have tax issues and am hoping to do an offer in compromise for 2006, 2007, and 2008. None of the taxes are dischargeable I will be closing my business in the next few months and will get a job with at least 6 months pay stubs prior to filing also.

I really need the house for future tax benefits and to avoid this all in the future. This negative number does not include a car payment. My current car has over 100,000 miles and is salvaged. I was thinking of an F350 but the payment may be 850 which raises my negative even more which may even be a bigger red flag.

All advice appreciated

[SUB]

If I understand correctly, when one files, they want to show absent the dischargeable debt, they can pay for what they reaffirm along with allowable living expenses.

Can't understand how you can put forth that impression being so far in the negative.

[sharksfan]

If I understand correctly, when one files, they want to show absent the dischargeable debt, they can pay for what they reaffirm along with allowable living expenses.

Can't understand how you can put forth that impression being so far in the negative.

I don't think I understand what you are saying.

My means test comes out to -$1,700. Which included my $2600/mo mortgage and a $550/mo car payment... both of which I am surrendering. Are these items not to be included? My attorney also serves as a Trustee on a bulk of the BK cases in my county...

[danaf]

Barring your original question - the way I'm reading you post is that you are looking to foreclose or surrender your current home and then turn around and buy an even more expensive home? Or maybe you are trying to buy a more expensive home and then surrender your current one? Correct me if I'm not reading your post correctly.

[SUB]

I don't think I understand what you are saying..

Simply put, if you want to keep your house, you need to show enough income to keep the payments up. At least that's the impression I got from the attorney.

[sharksfan]

Simply put, if you want to keep your house, you need to show enough income to keep the payments up. At least that's the impression I got from the attorney.

Got it!

I don't think the judge will let you hang on to something that is going to kill you financially.

[Nightowl805]

I do not currently own a house but am trying to decide if it better for me to get into a house before bk. With just renting, 1700 per month and child support of 1800 per month not to mention actual allowed expenses my means test comes out with the negative 1400 per month on the means test.

If I purchase a house that number would be projected at -4000 per month. I can make those payments now barely but am getting deeper and deeper into debt especially with the IRS and desperately need the tax right post bk to deal with the IRS.

How can the trustee make me sell theh house if my payments are current and I reaffirm my debt?

I know there are a lot of what ifs but just trying to get an idea or two

[danaf]

as SUB stated earlier

" If I understand correctly, when one files, they want to show absent the dischargeable debt, they can pay for what they reaffirm along with allowable living expenses.

Can't understand how you can put forth that impression being so far in the negative."

Being so far under on the means test could be a reason for your bk to be thrown out.

[CindyLou]

even without the house you are in the negative. If that is the case then how could you double your housing payment and make that when you are in the negative already.

Being in the negative on paper and making it in reality will red flag that there is some type of income you are not disclosing.

Also, you, said you plan to do an offer in compromise...including this year. Its only march! Take care of your taxes ib the next 9 months and don't depend on an offer in compromise....

With all due respect, purchasing $500,000+ home now seems a little irrational.

Your plan does not sound like it is going to work in your favor. Tightening up your belt and filing seems more reasonable so that you can begin paying your taxes!

[Cali]

With all due respect, purchasing $500,000+ home now seems a little irrational.

Your plan does not sound like it is going to work in your favor. Tightening up your belt and filing seems more reasonable so that you can begin paying your taxes!

I agree with purchasing a house for 500k as being irrational for someone that is already in the red, even though that price is the reality for most of CA for a home.

[CindyLou]

oh. believe me.....I live the reality. I live in southern california.

I meant doing so under the circumstances would be irrational....

[Cali]

oh. believe me.....I live the reality. I live in southern california.

I meant doing so under the circumstances would be irrational....

I live in SoCal too, where homes start at 1.5 mil.

I was agreeing with you about it being irrational.

[kiddles]

OP wants to buy a new house, a new 350 truck, take on these additional payments he already knows he can't afford (and if he's in the negative on the means test, likely can't even make, much less afford) and manage to hold of on filing until early next year.

Sounds somehow fraudulent to me.