2 more quick means test questions...

[Tom_Mi]

1)
I'm filing early Aug.. Is my July stimulus check (2,100) income I must add to my salary? (please say no! please say no!)




2) I'm surrendering my house, so I can't deduct my mortgage payment on means. If I go to CH13, I'm looking at a 5yr plan paying out what..80k ?

Why not reaffirm my house, pass means, discharge, foreclose on the house, accept a judgement for say 30k and pay it back on my terms, not a trustees?

[Help!]

1) It's considered income in our district. Check w/ your lawyer...

2) We're surrendering our house and put the IRS Standards for housing. If I were you, I'd rent something, save myself the $30K and a major headache. They can add in legal fees, interest, all kinds of stuff to the amount of the deficiency judgment. There's always a risk that the auction price comes in really, really low.

[Tom_Mi]

2) We're surrendering our house and put the IRS Standards for housing. If I were you, I'd rent something, save myself the $30K and a major headache. They can add in legal fees, interest, all kinds of stuff to the amount of the deficiency judgment. There's always a risk that the auction price comes in really, really low.

Wait..for means testing, (if I surrender) I can still deduct a "standard" housing amount, just not my mortgage pmt? Did I hear that right?
My atty gave me the impression that surrendering the house meant NO means test deduction for housing was allowed.

NOTE: She also said that since my 2 (old rusty but Paid for) cars had no payment, I couldn't deduct them. Is there an IRS "automotive" standard I can deduct?

[Yankeegirl]

It depends upon your district.

- Everyone gets a housing deduction. Whether or not you can deduct the mortgage payment for a house you are surrendering depends upon rulings in your district. In mine, you can't. But in others you can. Regardless, you do get the standard IRS deduction.

- Regarding the car, again, it depends on your district. In my district, you can take the ownership deduction even if the car is paid in full. Is your car(s) high mileage (over 75,000)? If so, you are entitled to a $200 deduction per high mileage car.

You're going to need to speak with your attorney to get a definite answer on each item.

[Tom_Mi]

It depends upon your district.

- Everyone gets a housing deduction. Whether or not you can deduct the mortgage payment for a house you are surrendering depends upon rulings in your district. In mine, you can't. But in others you can. Regardless, you do get the standard IRS deduction.

- Regarding the car, again, it depends on your district. In my district, you can take the ownership deduction even if the car is paid in full. Is your car(s) high mileage (over 75,000)? If so, you are entitled to a $200 deduction per high mileage car.

You're going to need to speak with your attorney to get a definite answer on each item.

Thank You both!!!! ...I'll bring these up to my attorney immediately. I really like my attorney, she's a very nice lady but I'll be watching her responses to theses questions carefully.

[soleprop]

1)
I'm filing early Aug.. Is my July stimulus check (2,100) income I must add to my salary? (please say no! please say no!)

I just asked a similar question to my court clerk; she said not to include it in my filing but to include documentation of it and my tax refund in the documents I bring to the 341. She said it should not be part of the initial filing, but it should be available if the trustee requests it. For the initial filing, they only want paystubs for the 60 days prior to filing.

Whether or not you factor your tax return or stimulus check into your means test is...so far not officially documented by the BK law. I'm going to factor mine with and without, and see how big of a difference it makes...

hope that helps!

[laurannm]

1)
I'm filing early Aug.. Is my July stimulus check (2,100) income I must add to my salary? (please say no! please say no!)




2) I'm surrendering my house, so I can't deduct my mortgage payment on means. If I go to CH13, I'm looking at a 5yr plan paying out what..80k ?

Why not reaffirm my house, pass means, discharge, foreclose on the house, accept a judgement for say 30k and pay it back on my terms, not a trustees?

1) Seems to vary from district to district. Our attorney is telling us it is not income in our district, but the trustee will probably ask how we spent it.

2) In MA there have been a couple of BK judges now who have ruled that a debtor can deduct mortgage payments from a house they are surrendering. This can also vary, and if your attorney is giving you the impression that it cannot be used if surrendering, then you may not be able to in your district

[soleprop]

yankeegirl, thanks for the confirmation on that high mileage car deduction! that's about what my average maint. on my car is each month, lol!

[Phillymanhere]

Tom,

Just to be clear here: the reason you can deduct housing expenses if because .. you are going to have housing expenses. Yes, you'll give up the home. But unless you're heading for the nearest free shelter, you will have housing expenses. That's why you can note them!

Good luck.

[Tom_Mi]

Tom,

Just to be clear here: the reason you can deduct housing expenses if because .. you are going to have housing expenses. Yes, you'll give up the home. But unless you're heading for the nearest free shelter, you will have housing expenses. That's why you can note them!

Good luck.

I agree 100%. It's just that after hearing my rental income counts (on houses I'm surrendering..and wont CONTINUE to receive on) but the mortgages I paid on them doesn't count against the same income-- I've given up on expecting common sense to prevail.