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    Question about Means Test

    Sorry to bring this up because I know there are a lot of threads out there, but I got to reading about people who have filed and there case comes up with possible abuse.

    I live in Vermont and the median income for a family of four is $75,938 or $6,328 a month.

    I work and my wife stays at home with our 2 daughters and last year, I brought home roughly $36,000 gross from my job and an extra $2500 from money I earned online.

    My monthly gross income is around $2911.00, so obviously, I meet the requirements for a chapter 7. My lawyer says we meet this and I take his word for it.

    Where I am a little confused is when it comes to expenses.

    According to the means test, in the county I live in, there is a $782.00 monthly expense allowance for housing and utilities.

    Since we rent, I think we pay roughly $200.00 a month for our heat and electricity. With other household expenses, we don't even come close to that amount.

    The same goes for allowances for rent / mortgage payment which is set for $1130 a month, but we only pay $679.00 a month for rent.

    To make a long story short, for my family size and the median income, we are allowed $4,006 in expenses a month. As you can see, I don't make that amount in a month.

    When it comes to expenses, do they automatically take the $4,006 that we are allowed since we are not over that, or do they go by what we actually spend each month and add it all up?

    Without our credit card debt, we can make our car payment, pay our rent, pay our utilities, put gas in both our vehicles and even save a little each month. That is the part that gets me. That money we have left over with the way we spend now, will that come back and bite us some how?
    Filed (Pro Se) - 06/23/2009.
    341 meeting - 08/05/2009.
    Last day for objections - 10/05/2009.
    Discharged - 10/06/2009

    #2
    they take what is allowed on the means test, the actual goes on schedule J

    my means test showed -4000.

    it is just a test to see if you qualify for ch13

    Comment


      #3
      I was wondering about this too. I'm in GA so my #s are different, but we're kind of in the same situation.
      I think we can do Ch 7. After I put in our income and use the standard exemtions on there...our disposable income is $49/month (if I'm doing it right). We're about $20,000 under the median for our family size so I hope it's not going to be difficult to go with Ch 7.

      Comment


        #4
        I am in the opposite situation.

        My mortgage/utilities etc. are more than under state of florida for 2 household is $1,246. But my actual mortgage is close to $3k per month.

        How does this work when your real expenses are more than the average for your state/county?

        Comment


          #5
          On the means test I used it said this for housing expenses:

          This is a minimum amount. if your mortgage payment is higher, you get the full amount of the mortgage.Not so for rent, unfortunately.

          I went to FL and just picked a county and it has the same message so I guess you use the actual amount if it is higher?
          This free online calculator computes your means tests results, applying applicable local standards for Hillsborough County Florida, as required by federal law. The 2005 bankruptcy law (BAPCPA) requires all persons to complete a means test (Official form B122A) before filing for bankruptcy. It requires no registration or disclosure of personal information. In 20 minutes you can find out whether you qualify for Chapter 7 bankruptcy under the Federal Bankruptcy Means Test. (Bankruptcy Code 11 USC. 707(b)(2)).

          Comment


            #6
            yes you use the actual amount of your mortgage and put it on line 42, you also put it on line 20 but then it will 0 out.

            Comment


              #7
              legalconsumer is the best online means test out there.

              Comment


                #8
                Originally posted by indy View Post
                legalconsumer is the best online means test out there.
                Legal Consumer is the test I used. Even when I add up my monthly expenses, it is very close to what I take home. We don't spend much on clothing; only a few times a year, so I guess I can add that in. The same goes with gifts. We only buy gifts for Christmas and birthdays, but that adds up.
                Filed (Pro Se) - 06/23/2009.
                341 meeting - 08/05/2009.
                Last day for objections - 10/05/2009.
                Discharged - 10/06/2009

                Comment

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