Is there a debt to income qualification for ch 7?

[hopefulbk]

I mean, lets say that someone is short only $400/mo for bills. In other words, their paycheck pays for everything except $400 worth of bills each month. Is that something where they would force you into CH 13 even though your qualified on the means test? Is there some sort of calculation or ratio they use to see if you'd qualify for a debt consolidation loan?

I am about $2300-2500 in the hole every month. I can't afford my car next month and I don't plan to file until Aug. If my car gets taken back by the repo man and is not in my possession at the time of filing, then I'm only in the whole $1950/month because my car pymt is about 350- correct? I'm sure that is still enough to qualify but I was considering letting my husbands car go before we file as well. The extra insurance and car payment on his car is a decent amount that we could put towards other necessary expenses like my health insurance.

Lastly, I keep reading different things about expenses. If I have a car or house or cc in my possession but am NOT paying on it, it is still considered an expense right? However, if the repo man takes my car, then that is not counted since I don't have it in my hands- right? Thanks for reading

[JRScott]

The only real test is if after allowed expenses you have 168 dollars or more left each month. If you have 168 or more left after allowed expenses you are chapter 13. If you have less left then you are chapter 7.

[lrprn]

You may be thinking that the required Means Test uses your actual expense figures, and several parts of it don't. You won't know if you can file Ch 7 or not until you mix your real income and some real expenses with the mandated expense figures set by the Census Bureau and the IRS and run them through the Means Test to see if you have disposable income or not.

If you would like to try a dry run for yourself, here's a link to an online interactive Means Test - http://www.legalconsumer.com/bankrup...test/index.php . Be warned though - it's even more complicated than filling out your own long form taxes by yourself.

[Help!]

Not exactly, but the way the Ch. 7 means test is set up it is beneficial to have a high unsecured debt total compared to income.

The BK lawyers are quick to proclaim that you "pass the means test", but your petition is almost like a proposal to the court and there is always a chance that expenses you claim will be challenged (but a good lawyer should see those challenges coming).

[eddiep]

are you including your credit cards and any payments you plan on getting rid of in bankruptcy, or forclosing on your house in the $2300 - $2500 in the hole? Because you only count what you are going to continue to pay after the bankruptcy in the means test. If you are currently responsible for say $1000 a month in cc payments but are going to get rid of the payment in bk, you don't claim that on your means test.

[hopefulbk]

are you including your credit cards and any payments you plan on getting rid of in bankruptcy, or forclosing on your house in the $2300 - $2500 in the hole? Because you only count what you are going to continue to pay after the bankruptcy in the means test. If you are currently responsible for say $1000 a month in cc payments but are going to get rid of the payment in bk, you don't claim that on your means test.

So credit cards, cars. medical bills and mortgage is taken out of that? Do they include a general figure for rent costs since after the bk, I'll be moving out of my house or no because I will go rent some place NOW if I have to.

I am currently paying food, utilities, gas, car ins., entertainment, car repairs, phone, Will need to pay for my health ins out of pocket. My current income can take care of the bills I'll have after bk but it can not pay the current expenses I have from debt. I don't think I understand why they want you to still be in the negatives when you pay for the things you will pay on after bk- isn't that defeating the purpose or am I just misunderstanding?

[hopefulbk]

I just saw an expense post and I forgot to add in MANY things. Perhaps that would work. How do you pay for this stuff if you have to be in the whole a few hundred? If I no longer have cc's and the expenses are more than I make, how the heck does that get paid?

[beachymama]

Can you remain in school while in bankrupcty? I am in graduate school, in a program that continues in succession every 5-6 weeks. The program costs $4950 plus books for the total program and I am paying $412 a class every six weeks.

Will they make me stop? Or can I use these as expenses?