15k over median but negative DMI

[kingred]

Hello all and I must say what an impressive forum here with lots of information. I've read a couple posts with people in a similar situation but I was hoping for some info specific to me.

I'm 15k over the median income test (only 4k if I file in April) and once I got the math sorted out between line 48 and 49 (more deductions than income but calculator said positive?!), well I am at -900 on line 50. I have read that I will then need to complete forms I and J but have not gotten to them yet. Mostly my concern is that I am on unemployment due to a seasonal layoff and hope to be working again around April but it will be until August when I start college full time. During that short time period my income will be fairly good but then it would drop off pretty hard with school so this makes figuring how my future money will be a little tricky, as well that my wife is pregnant and due in September so she'll be off work a bit too. One big reason for going negative is that I have 1k a month in child support to pay and between taxes a payment on a motorcycle (cheap summer transport) I am usually negative and my wife pays most of the other bills, thus negative DMI. We've looked over the IRS numbers and they aren't too far off from reality so that shouldn't be an issue but it's one of those things making me nervous about spending the money then being told to go 13 when I won't have a stable income for the next few years.

If anyone is completely lost, I'm not surprised as my writing style can be...odd, so ask away and I'll answer to the best of my abilities. On a side note, anyone know a good bk attorney in sioux falls, or one to stay away from?

Also, I would like to reaffirm the bike as I use it to cheaply cover the distance to see my daughter and my truck stays parked in weather +30 as I commute on the bike as well. Ultimately I don't know how much it saves me but I know it helps me relax, any idea on the rules for motorcycles and reaffirming?

PS, since I forgot, I'm filing married spouse not filling and counting her income per the rules (bastards)

[kingred]

Just to update, I got bored (obsessed) and cranked out the I and J forms and cam up negative again, but only -140. As well, on schedule I where it asks about overtime can that number be deducted from the gross income?

[lrprn]

Completing the Ch 7 bk forms is a good exercise to understand how they work, but until you have the Means Test and Schedules completed by an experienced bk lawyer who is familiar with what's going to fly in your local court and bk district, unfortunately it isn't reliable. There are differences in how trustees and bk judges across the U.S. interpret the bk law, and you won't be aware of those. Since you are over median, your case will be looked at very closely by the local trustee and your district's US trustee when you file.

If you haven't set up 3-4 free initial consultations with experienced bk lawyers in your area, now's the time to do that. A large majority of bk lawyers won't complete the Means Test and Schedules for you until you pay their retainer, but they can usually give you an idea of whether you can file Ch 7 or not and where your trouble areas might be.

[kingred]

Thanks for that, I've only talked with one lawyer on the phone so far just to find out his fee but I suppose I better get off my rear and go meet with them. IS it worth it to actually have proof of the expenses or just have them written down for reference?

[lrprn]

IS it worth it to actually have proof of the expenses or just have them written down for reference?

You can go to the intiial consultations with your financial figures (income and expenses) written down only. The lawyers you meet with will really appreciate it if you have a solid list of all your financials to go over and you aren't trying to figure it out or just guessing during the meeting.

When it comes time to file, if the expenses you have are considerably higher than the required IRS-based figures or what trustees will allow in your local bk court, then it's likely you'll be asked to provide actual documentation to prove your higher-than-normal expenses are real.

[kingred]

That's not too bad then, I'm under for some and over for others. I went back and revised some figures and it came out to within 20 dollars so I think I'm safe.

Do you know anything about the overtime question and how it figures in with the schedule I?

[keepmine]

I'd strongly urge you not to file until the baby is born. The addition to the family aids in the means test plus, you want to be sure if there are issues you can include any medical debt that your insurance won't cover in the bk.

[kingred]

It would aid but the bills would be in my wifes name and her finances are doing good, it's just me filing.

[floridian]

i see that you are counting the payments on your motorcycle, aka cheep transportation...

i did the same thing and i was fine on the DMI, deducting my payments, but all was not welll..

the lawyer said that not only can i not claim the payments, the trustee will make me get rid of it... its considered a luxury item...

so, no motorcycle and hello DMI problems..

[kingred]

Well that's a real bugger there, do they take into consideration value vs amount owed? If I file in April the income will be about 900 less so that should cure some issues at least.

[floridian]

nope, its not a value thing....i ride my motorcycle more than my car, due to the price of gas....

the bk trustees look at it like an extravigant toy, from what my lawyer says... you will probably lose it...

[kingred]

nope, its not a value thing....i ride my motorcycle more than my car, due to the price of gas....

the bk trustees look at it like an extravigant toy, from what my lawyer says... you will probably lose it...

In your case were you forced to return it or how does that work?

[floridian]

i have 2, one im upside down on and one i have equity.... the lawyer told me to give them both back before my 341 hearing...

i begged and whined, but he said keeping them was not an option..
now im dragging my feet on filing and since im current on the payments, im going to ride them until the last minute...