Second car ownership expense

[lolasaurus]

So I was using DebtStinks' calculator to do the means test for myself, and unlike on the means test forms, it suggests that most localities will not let you take that expense if you don't owe on the vehicle.

All of my calculations thus far have relied on that. I own two cars, owe on one, but have the expense of operating both.

Is that going to be a problem for me?

[lolasaurus]

As I read more about this, it's becoming clear that where I am matters - I'm in the western washington bankruptcy court district

[TEW]

Is it just you filing or is it joint?

[lolasaurus]

Is it just you filing or is it joint?

my wife and I will be filing jointly for better or worse

[justbroke]

You can take the Operating Expense for two cars, but not the ownership expense for both cars. However, some States have litigated this (like Massachusetts) and allow you to claim it. You will need to see how your particular State and District handle this.

FYI: i couldn't find any Washington State caselaw in my searches.

[lolasaurus]

You can take the Operating Expense for two cars, but not the ownership expense for both cars. However, some States have litigated this (like Massachusetts) and allow you to claim it. You will need to see how your particular State and District handle this.

FYI: i couldn't find any Washington State caselaw in my searches.

Yeah, I've been googling it all morning since this may completely foil my plans. Would be awesome if anyone from western washington or seattle could weigh in, if they know.

[DebtStinks]

Good article on the topic:

Vehicle Ownership Expense Deduction: Fixed Allowance or Cap on Actual Expense?

My wife was driving a junker... 96 ford that was on it's last leg. We made the decision to go out and buy an almost new car (2008 with 9k miles) while our credit is still good (not late on anything yet, but it's coming soon). We needed the car and we will keep making the payments through the bankruptcy. The extra deduction is also a HUGE help. Plus if we tried to buy after the bankruptcy our interest rate would have sucked back. We got 7.75% and the payment like $275 which isn't bad at all.

[justbroke]

I know that article from the ABI as I read it months ago. However, as you read the article, you'll see how messed up the different Districts are. There is still no consistency amongst the Districts.

I purposely kept a car (2003) in my plan because of the "extra" money I get for having the car. (It's basically $200/month and I get the other $289/month as part of my general budget!!!). Shhhhhh...

[Chowder]

As I read more about this, it's becoming clear that where I am matters - I'm in the western washington bankruptcy court district

Me too. Two cars, single filer, one new with no equity, another 2004 owned outright which is an asset. I'm hoping the wild-card will cover the 2004.

I'm guessing you're over median?

[lolasaurus]

Me too. Two cars, single filer, one new with no equity, another 2004 owned outright which is an asset. I'm hoping the wild-card will cover the 2004.

I'm guessing you're over median?

By about $20k... $30k if you count my bonus that won't be repeated next year :\

[lolasaurus]

I guess we really need to find an attorney and just get his opinion, I was kind of hoping to do this pro se because it's interesting to me, but little things like this will make it really difficult to speak with any confidence.

[OhioFiler]

I guess we really need to find an attorney and just get his opinion, I was kind of hoping to do this pro se because it's interesting to me, but little things like this will make it really difficult to speak with any confidence.

If you're $30,000 over median I'd look to an attorney for advice for sure.