Over the median ch 7.......

[sunshine mary]

We are over the median by 12K and we had a very lengthy 341 meeting with a US Trustee present (we were also questioned by him) He was actually much more personable than our local trustee !! I knew we showed negative income after we took the second part of the means test but after being told by the first 2 attorneys we interviewed we had to do a CH 13 I still had my doubts we could qualify for a CH 7....***crosses fingers & knocks on wood***everything on Pacer seems to be normal and everything is moving along. It did help that the US Trustee told our attorney he wasn't going to pursue the presumption of abuse. THAT made my day!!!!!


Good luck to you

[laurannm]

Great to hear Sunshine!

If I may ask, what types of questions did the UST ask you?

[dragonnfly]

We actually had the same thing with the first lawyer we intervied and then the second was hesitant to file us a 7 and the third (who luckly I liked the best) was sure we could file a 7 and he had just done 3 "over the median" 7's. The first lawyer we were going to go with but then he called and asked me where to put the per diem on the means test?? Im glad they did that because thats what made us move on to the second and third interview. Oterwise we would have filed 13. Im so ready for the 341 to get here. I hate wishing my life away but this next 2 weeks ansd 5 days can fly as far as Im concerened. Im holding my breathe every day when I click on Pacer. It doesn't make sense for me to be so stressed I know we have enough wiggle room even if they pick on a few things we would still be OK. It will just take longer..... Thanks for you support. Dragonnfly

We are over the median by 12K and we had a very lengthy 341 meeting with a US Trustee present (we were also questioned by him) He was actually much more personable than our local trustee !! I knew we showed negative income after we took the second part of the means test but after being told by the first 2 attorneys we interviewed we had to do a CH 13 I still had my doubts we could qualify for a CH 7....***crosses fingers & knocks on wood***everything on Pacer seems to be normal and everything is moving along. It did help that the US Trustee told our attorney he wasn't going to pursue the presumption of abuse. THAT made my day!!!!!


Good luck to you

[sunshine mary]

If I may ask, what types of questions did the UST ask you? 

He asked about 2 deductions on my pay stubs... one was my 401K contribution and one was a disability policy I have and he was going to ask about a partnership I am a part of but the local trustee had covered that he said.

[totallyconfused]

We just filed today and are over the median by 10K but because of the kids illnesses and me not being able to put them in daycare and work outside the house the lawyer said we qualify for a Ch7. Our debt is over 100K and she told me the US Trustee would definatlly be at our meeting. I am so nervous I can barely stand it..

[laurannm]

If I may ask, what types of questions did the UST ask you? 

He asked about 2 deductions on my pay stubs... one was my 401K contribution and one was a disability policy I have and he was going to ask about a partnership I am a part of but the local trustee had covered that he said.

Thanks

On your means test did you guys use taxes withheld (as shown on your stub) or actual taxes incurred? Our lawyer said we would have no problems using taxes withheld but I have my doubts on whether that would fly with a UST

[Cali]

Congrats Sunshine Mary!!

[dragonnfly]

Thanks

On your means test did you guys use taxes withheld (as shown on your stub) or actual taxes incurred? Our lawyer said we would have no problems using taxes withheld but I have my doubts on whether that would fly with a UST

Im not sure what you mean. We had 401k deduction but were advised to make the contributions 0 until this was over, (they were only 1% anyways). What are you calling taxes like deductions that they take out for disability ins. etc? We did use our actual tax deductions, like federal tax and SS tax etc.

[laurannm]

Im not sure what you mean. We had 401k deduction but were advised to make the contributions 0 until this was over, (they were only 1% anyways). What are you calling taxes like deductions that they take out for disability ins. etc? We did use our actual tax deductions, like federal tax and SS tax etc.

Yep, I am referring to your federal, state and SS withholdings on your pay stub. Technically speaking I think the forms call for to use your actual tax obligation (meaning if you get a refund you are over-withholding and thus not a true indication of your obligation). My guess is that since that you haven't heard anything yet from the UST you are probably ok.

It seems though that there are some districts out there that are allowing tax withholding to be entered into the form. Our lawyer has told us this how it is done in our area, along with a couple of other lawyers I consulted with. And looking at various petitions on Pacer in our district, it's common practice that seems to be accepted

[movingon]

I was over the medium by 30K and still was discharged in my chapter 7. Monthly medical costs (almost $800), mortgage, and my car payment were the big three which enabled me to pass the means test. They definately questioned it, but I had amble documentation to prove every expense (11 month records). Since I knew I might be a tough pill to swallow, I planned the BK almost a year prior to filing to ensure all T's were crossed...it was well worth the wait.

[jdl]

Means test vs current income

Hi everyone, I am very excited to find this site where everyone is sharing experiences.
I have turned in all of my paperwork and my lawyer told me that I qualify for Chapter 7 based on my last 6 mo. income but that because I currently make more money, I have to file a Chapter 13.
Has anyone ever heard of this? If this is the case, I don't see why the means test looks at that last 6 mo. anyway.

[Cali]

I never knew you could be 10-30k over and still get a C7. And here I was worried we wouldn't be ok with filing C7.

[dragonnfly]

We still are going to have a car issue here soon. They left my car payment in even thought we are surrendering it. They should be coming to get the Durango soon I have already occasionally been driving my daughter car because its better on gas. We will need to get 2 different cars I am really hoping to save up a few thousand and get a cheap gas saver with cash, but I cant really see that happening. Summer will be here soon and my daughter will want her car diring the day.

movingon - Im glad to hear you got through your ch 7 OK. I just hope the same goes here.

laurannm - I understand what you mean now. There was no mention of that, actually Im not sure if they entered our actual tax obligation or the real deductions. We usually get back about $4000, I was going to up our exemptions and a friend said dont do it, my kids are all teenagers and we will loose the child tax credit when they turn 17. Sure enough my daughter turned 17 last august and we only got back $3000. 2 more kids and it will be done to $1000. So we are leaving it alone.

[dragonnfly]

jdl - I have heard of people hurrying to file because they will make more $ in the future. Did you change jobs or something what is the reason for the raise?

[jdl]

Job Change

Yes, I changed jobs at the end of January.