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Need Help: Over Median and Means Test

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    Need Help: Over Median and Means Test

    Thanks to everyone for the excellent information. I've been lurking for a while and I wanted to get some help.

    I was particularly interested in the poll about Over Median but still being able to Pass the Means test to file Chapter 7.

    I am a single temporary worker, who is unemployed. I anticipate getting back to work next month, but during the hiatus, I've realized that I need to file for bankruptcy. I want to find out whether Chapter 7 would be possible for me in Virginia.

    My debt is all credit cards, about 110k. Of 11 cards, only 4 have been open in recent years, meaning from 2003 to the present. With the others, I've just been paying the minimum or a bit more.

    I have no assets other than my computer and two TVs. No savings, no pension, etc. At this point, I cannot pay on the cards and this is the first month I've not paid, other than 2 which I've used to pay for groceries and personal care items. With the unemployment and what was left in a checking account, I've used for rent.

    My income does fluctuate because I never know when an assignment will end. The predictability has been getting worse in the last 2 years and with the economy, well the assignments are getting harder to find.

    Going back 6 months, I am above the median for a single person in VA (about $49k and some change) by 12k. If I could file in May, I would be over by 6k. In terms of the Means test, I'm having a rough time with it and could use some guidance. I've got 65k worth of student loan debt, which I know cannot be discharged, but I wondered whether this would help the Ch.7 qualification.

    I saw the Poll here and wondered if anyone knew anything about how Virginia operated in my situation, being over median and dealing with the means test. I live in Northern VA, so I guess that's the Eastern District.

    If anyone can suggest a good bankruptcy lawyer in Northern Virginia, I would appreciate that, too. At this point, I can't pay, but I will be able to when I get some work.

    The bulk of the debt on the cards is from periods of unemployment. There was a period of 2 years where I virtually lived on credit cards. With all these cards, I've only taken one cash advance and that was back in 2002.

    I have no family and you guys have really helped with your posts in terms of dealing with the situation and getting myself on the right track.

    Thanks in advance.

    #2
    First, bankruptcy is bankruptcy and it is federal law, so for the most part, it really doesn't matter what state you are in. State law only comes into play for asset exemptions.

    1. Student loan payments are not allowed expenses in BK, so no, the student loan payments will not help.

    2. You are on the right track, you will need a lawyer to help you sort this out.

    Basically, their a 2 parts to the means test. Part 1 is the over/under on the state median income. Part 2 is IRS allowed expenses + Secured debt, do you have anything left over at the end of the month.

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      #3
      Fresh - I'm also in Northern Virginia and will be filing for bK this year. Check out Robert Weed. Search on the internet he has a very informative website and BK is ALL he does. Best of luck to you.

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