Boderline Chapter 7.....Need to reduce paycheck.

[tools2teach]

Would it be adviseseble to reduce my paycheck by enrolling in a more expensive health plan? It that exempt? 401k? Flex Savings for Health care plan?

We are $390 above the means test and if we plan right, hopefully we can get over that hump.

Am I going the right way with this?

[TEW]

The means test is only the first part. How far have you gotten.
And you use grose pay.

[tools2teach]

The means test is as far as we gotten. My gross is 5666.66 and my wife is $1600 month.

[TEW]

The means test is as far as we gotten. My gross is 5666.66 and my wife is $1600 month.

More forms

http://www.uscourts.gov/bkforms/bankruptcy_forms.htmlhttp://www.bkforum.com/showthread.php?t=30182

check this thread same thing or close to what you have.

[tools2teach]

Does anyone know if a flexable spending account for health care is exempt? That is reduction of $250 off my paycheck?

[DaisyMae]

Your health plan deductions are allowed on the means test,

and Schedule J. It's the simplest way to pass the means test and reduce your income also for Schedule J, and it can be reduced after your BK ends.

[JRScott]

Tools are you saying that after all allowed expenses you have 390 dollars disposable income right now?

Have you checked to make sure you are allowing enough for food/gas, that's a common area folks under report initially.

If you don't have a health insurance plan then yes having one could help, I'm not sure what the total would be allowed for one.

If you don't put any into a 401k plan then yes that too is allowed I believe. However don't put an excessive amount into it.

[stephenm]

Only mandatory retirement plans are allowed (I work for the state and it requires a 5% contribution a month for employment). You can raise your flex spending, insurance, get short term/long term disability and get term life insurance. Also church donations up to, I think 15%, are allowed.

Remember, everything has look backs of at least 6 months and as much as an audit. You can't increase your flex spending next month by $60 and claim $60, it would only be $10 because it is the average over the last six months.

Talk with several lawyers about pre bk planning. Some will work with you, some won't.

I was $25K over median and am passed my 60 days to object, still waiting on discharge.

[njguy1972]

if your employer offers can you switch from a traditional 401k to a Roth 401k. The Roth 401k is after taxes so it can adjust your paycheck by over $100 easily.

[tools2teach]

I just submitted my new enrollment benefits. I applied for highest cost health plan which is $167 for my wife and I. I also added $3000 to flex spending account which would equate to a reduction of $250 and also $100 into my 403b since I work for the state.

Did the scheadule I & J worksheet and I am happy to say we past the means. Now I just have to wait until January for the new benefits to kick in and wait 6 months.

[JRScott]

Okay good luck, it is all about planning really.

[woeisme]

I don't think you can change the amount you put into a flex medical account once you enroll, not without a qualifying life event anyhow (marriage, new child, etc.) so whatever you put in there, it's there until your next open enrollment period. At least that's how mine works. My trustee did allow that amount, but we had to show medical records that we had on-going health expenses that would use that money. It's so variable, what one trustee allows another questions, so you should check with a local lawyer who knows your trustee to see what your specific jurisdiction allows.

[B65]

wow stephen 25 k over mediian and it still went through as a 7, did they just add a lot on schedule J, did they add phone and tv and such as bills?

[WorkingItOut]

I don't think you can change the amount you put into a flex medical account once you enroll, not without a qualifying life event anyhow (marriage, new child, etc.) so whatever you put in there, it's there until your next open enrollment period. At least that's how mine works. My trustee did allow that amount, but we had to show medical records that we had on-going health expenses that would use that money. It's so variable, what one trustee allows another questions, so you should check with a local lawyer who knows your trustee to see what your specific jurisdiction allows.

We are in our open enrollment period, so maybe he is too.

[njguy1972]

be careful with adding 3k to flexible spending unless you have a specifi reason for it. You will end up buying a lot of benadryl at the end of the year if you do not spend it.

also, wouldn't that raise a red flag to the trustee? The same if you contributed a full 20% to your 401k.

I think the trustee can go back 6-12 months on pay statements and see if there is a big difference on what you were contributing.

I have done 200-300 for years and probably will step it up to 400 or 500 since I am in pre-bk planning.