Means Test Questions

[clydeglyde]

Hello,

I am trying to determine if I can claim 7 or 13. Over the Median by $52K and have about $115K in Unsecured CC. On Line 44 of the Means Test, it states to include any PAST DUE priority claims or judgements.

I pay the IRS a monthly installment of $300 with about $17,000 left to go. Does this amount go on Line 44 of means test since it is tax or does it simply go as a secured expense? If not, does it go on the means test at all.

Also, I have 2 vehicles...1 that I am making payments on and 1 that is a company car that I have to pay $100 per month to use. Can I claim 2 vehicles on the means test?

Lastly, where do Student Loans go? I have $420 monthly payment into Student Loans. I have read that they cannot be included on the means test but can go on expenses.

With that said, if I do not pass the means test or barely pass but my Schedule I/J come out with neg. Disposable Income, can I still file a 7?

I know that some of these questions are probably better suited to ask a local attorney but I thought I would try to get some insight here...

Thanks

[lrprn]

I am trying to determine if I can claim 7 or 13. Over the Median by $52K and have about $115K in Unsecured CC.

Frankly you are way over the median income and if you file Ch 7 you are going to need a boatload of asset payments that are allowed when you file to get you to where you have no disposable income showing on the Means Test or Schedules.

Also, I have 2 vehicles...1 that I am making payments on and 1 that is a company car that I have to pay $100 per month to use. Can I claim 2 vehicles on the means test?

Unless you have some unusual circumstances, most trustees allow one car for each licensed driver in the household. How many drivers are in your household?

Lastly, where do Student Loans go? I have $420 monthly payment into Student Loans. I have read that they cannot be included on the means test but can go on expenses.

Student loans are unsecured and listed just like credit cards and other unsecured loans on the forms. Whether student loans can be included on the Means Test depends on the practices of your local bk court.

With that said, if I do not pass the means test or barely pass but my Schedule I/J come out with neg. Disposable Income, can I still file a 7?

It would help if you can explain how you ate up $57K to show no disposable income. Hopefully you didn't count any unsecured debt into your calculations? Do own secondary properties?

I know that some of these questions are probably better suited to ask a local attorney but I thought I would try to get some insight here...

You are right about this - several of your questions have answers that vary depending on what bk district your state is in and the court customs of your local bk court.

If you haven't set up free intiial consultations with 3-4 experienced bankruptcy lawyers in your area, it's time to do so. Trying to file Ch 7 with your level of income is not a pro se (without a lawyer) effort. You are going to be closely scrutinized not only by your local trustee, but by the US Trustee as well when you file.

Do this right - interview multiple lawyers who frequently file both Ch 7 and Ch 13 cases to sort out which chapter you may qualify for first. One tip: don't use a lawyer that looks only at your income level and tells you right off the bat you must file a 13, no other choice. Look for a lawyer that looks at the totality of your financial picture and then tells you what he/she thinks.

[clydeglyde]

Frankly you are way over the median income and if you file Ch 7 you are going to need a boatload of asset payments that are allowed when you file to get you to where you have no disposable income showing on the Means Test or Schedules.

I have taken both the Nolo Means Test as well as Best Case's Trial Software. Both come out with just enough Disposable Income to get into a 13.

Unless you have some unusual circumstances, most trustees allow one car for each licensed driver in the household. How many drivers are in your household?

2 Drivers

Student loans are unsecured and listed just like credit cards and other unsecured loans on the forms. Whether student loans can be included on the Means Test depends on the practices of your local bk court.

It would help if you can explain how you ate up $57K to show no disposable income. Hopefully you didn't count any unsecured debt into your calculations? Do own secondary properties?

Actually $52K...No secondary properties or unsecured included...House at 3K per month, Car at $800 per month, using IRS standards for my state and county for everything, expenses where applicable ($560/month child care, $500 per month Health Insurance, $200 Life Insurance, $1700 in Taxes, Medicare etc.) In the secondary determination is where I pass where it shows that my repayment is less than 25% of the total unsecured owed. Again, I am right on the edge of a 7 or 13

You are right about this - several of your questions have answers that vary depending on what bk district your state is in and the court customs of your local bk court.

If you haven't set up free intiial consultations with 3-4 experienced bankruptcy lawyers in your area, it's time to do so. Trying to file Ch 7 with your level of income is not a pro se (without a lawyer) effort. You are going to be closely scrutinized not only by your local trustee, but by the US Trustee as well when you file.

Do this right - interview multiple lawyers who frequently file both Ch 7 and Ch 13 cases to sort out which chapter you may qualify for first. One tip: don't use a lawyer that looks only at your income level and tells you right off the bat you must file a 13, no other choice. Look for a lawyer that looks at the totality of your financial picture and then tells you what he/she thinks.

Thanks for your info...still I have a question on the Line 44 Means Test RE: Monthly IRS payment