Terrible News .....

[debtmonster]

You need to do the whole means test bankruptcy form b22a and see if your monthly disposable income is more than 10,000 plus / 60 (I'm not sure what the current number is). You can do it at www.legalconsumer.com at no charge!

I did that already. But since I have stopped paying so many bills, I am losing what I can include as my bills now.

Lately I've paid no rent/mortgage and only 1 car payment. My bills are next to nothing, but that's only temporary, but that's not how the court looks at it.

According to them, I'd have a TON of disposable income.

Every month I have something that's new and different from the last. It could be a $250 home repair this month or a $250 visit to the vet the next, or a $250 car repair the next. They won't take "$250 misc".

I'd just rather have no means test at all and just let them let me file Ch. 7 like people were doing prior to October 2005.

[bkadvisor]

On another thread in a different sub-forum I made the statement:

The bankruptcy laws are working in the creditors favor right now due to the over median income earners having to wait out the 6 month historical income meanies testing in order to be eligile for a Chapter 7.

A regular poster replied

This isn't correct. MAny on this site are over the median and filing chapter 7's. The means test is only part one. You still must fill out schedules I and J to determine if you have disposable income to fund a Chapter 13.
In post #4 in this thread I provided a copy and paste of a recent articles showing Chapter 7 filings as a percent of bk filings is about the same today as it was prior to reform

Not EVERY over median debtor can pass the means test. Statistically the over medians with the highest secured debt passes more often than the over median with a preponderance of unsecured debt.

If one studies the means test this becomes obvious when you note the line items where you can plug in actual expenses i.e. car pmts and mortgage pmts. Therefore an over median with two high car pmts will have higher allowed expenses than their counterparts with low or no car pmts.

Additionally the majority of Circuits do not use the I & J schedules to determine disposable income. This has been the subject of much litigation throughout the Circuits, though. The majority opinions basically opined Congress in their extreme wisdom (rolling eyes here) devised the crazy means test to determine disposable income.....so therefore they can't have it both ways. If an over the median passes the means test yet shows excess income on their I & J....case law in the Circuits have opined the 'means test' rules.

The OP in this thread is the unfortunate over median with high unsecured debt and relatively low secured debt. This is the group that suffers from using historical numbers that have no basis in their present financial realities. They must wait out the numbers in order to be eligible for a 7.

Subsequently the relevant questions in a case such as this are how much debt is secured vs unsecured. If a case by case analysis was done it would show the over median bk filer with higher amounts of secured debt can pass the very unfair means test on a higher statistical basis thereby qualifying for a 7.

One suggestion I might have missed is a 13 filed then convert to a 7. This strategy would only be advisable if the debtors needed time to become eligible for a 7 PLUS desired to save a non-exempt large asset such as a home or even in some cases their cars.

The best advice I can give is to pay only those bills that are necessities. Don't fret over what you can't control. Make a budget and keep it dynamic...the more flexible the better. Remember your health and welfare and that of your loved ones come first. Lastly, you are not alone in this economy. I wish you all the best.

GL!