California Chapter 7 question

[Scott71785]

Hello All,

So... I am thinking about filing for Chapter 7... I have a question about the means test.

For the transportation, housing (rent), and utilities/maintenance expenses...

Can I use the IRS standard for Rent? The IRS standard for my area is like $1450, but right now I am living with my brother for $650/month, but I am thinking of filing so I can afford to get my own place, which will be around $1200+/month.

My question is... on the means test, in the housing costs fields... am I entitled to the IRS standard, or do I have to use what my actual costs are?

If I put what I actually spend for Housing and Utilities... I fail... If I use the IRS standard... I pass. I need to file if I want to be able to live on my own...

Does this make sense? lol

[MrSmithster]

i think you have to put acutual, hope im wrong.

[CindyLou]

I thought if you rent you can use the standard whether you pay that much or not, and the only way you can use more is if you own a home then you can use the amount of your mortgage.

[justbroke]

The key to remember is that for the Means Test, what allowance you can take is based on whether you're over or under the median income.

If you are over the median income: for the means test, Form B22A, you put the IRS allowance based on your Region/State/County and Household size. For Schedule J, you put your actual costs.

If you are under the median income: you do not complete the Means Test, as you only fill out the top section and stop. For Schedule J, you put your actual costs.