707b3 objections from US Trustee

[texanboy76]

has anyone had a high income say around 85K gross and passed the means test? My question is that if you have high notes (homes,cars) does the US Trustee object with the 707b3 stating that you shouldn't have a house note that is xyz amount and your cars are too expensive?

any info appreciated...

[Tromploi]

I'm in CA and we had a combined income of about $150K. Median is about half that for a family of 4. Income is only half of the means test, the expenses are the other ("better") half. We qualified for a 7 based on expenses. I was worried about my animal costs, so we kept those minimal because THAT is an unnecessary expense, they aren't my business, they're just my animals. With everything else, we still passed the means test.

[Tromploi]

I should add though, our home and 1 car has no equity. One car has about $8K so we exempted it. I would think if you have high notes AND more equity than the allowable exemptions it might be an issue for a ch 7.

[fathergolf]

We are in TX also and my gross is 96k wife was 24k and we didn't have any issues.

Filed 11-21-08
341 12-19-08
Awaiting discharge 2-17-09

[Kingxray]

We make just over 100K and we passed the means test but the trustee is claiming we did not and filed a presumption of presumed abuse, so I guess it is a coin toss.

[okiemom2008]

We are in TX also and my gross is 96k wife was 24k and we didn't have any issues.

Filed 11-21-08
341 12-19-08
Awaiting discharge 2-17-09

So your expenses come into play, not just your income? I thought that basically if you were over the income you were a 13. Do they only count expenses of things you are not discharging or do they count everything including credit cards?

[katie]

I believe so okiemom. The median income test is only the preliminary test. If you do not meet that criteria, you can do the means test that looks at actual income and expenses.

We have just met with our attorney a couple of weeks ago now so have not actually filed yet, but from what I understand is that actual expenses even on things we are surrendering factor into the means test. If that is not right, someone please correct me. I am almost positive that is what my attorney said though.

[Tromploi]

We aren't surrendering anything so I can't speak on that. But our expenses are what qualified us for a 7. When they glanced at our figures originally they said, uh 13. (The PL did). When the atty actually went over things with us at the signing he said a 7. Mortgage, 1st and 2nd (used to be just the 1st you could claim), 2 cars, a tractor payment, medical, taxes, food, electric, phones, gas, business expenses (we are both self employed, essentially owning 3 businesses), animal feed, etc. EVERYTHING you pay for goes on the means test, minus the debt you are trying to discharge. Your expenses are figured (estimated) for the next 12 mos, so don't include anything you won't have after the BK.

[Tromploi]

I believe so okiemom. The median income test is only the preliminary test. If you do not meet that criteria, you can do the means test that looks at actual income and expenses.

We have just met with our attorney a couple of weeks ago now so have not actually filed yet, but from what I understand is that actual expenses even on things we are surrendering factor into the means test. If that is not right, someone please correct me. I am almost positive that is what my attorney said though.

I am certain our CC debt didn't go on the means test, if it did, we would be IN the hole about 5K a month, and we weren't, we had an $81 surplus. I can't imagine that they would qualify you based on expenses you will no longer have. I could very well be wrong too though.

[katie]

Yeah, that's what is confusing me. I did the online version of the means test myself twice before I took our stuff to the attorney and we passed. I got a call on Monday and my attorney's office confirmed that we did pass the means test and were ready to go forward.

If they do figure in the things we are surrendering we definitely have a negative balance after it is finished. My husband's income dropped about 75% so we can no longer afford things we used to have thus our reason for the Chapter 7.

[mindy0795]

I am currently filing chapter 7 also and what ever you are surrendering or what ever is being discharged through the bankruptcy does not count towards your current expenses. You have to fill out a form called schedule J and that is to list your current expenses going forward. For instance we have 1,000 a month in credit card payments and I cannot list them as an expense because they are being discharged. If you schedule J shows disposable income more than $100. they can push you into a chapter 13. Hope this helps.