Question about future car payments on the means test

[Ann]

Was looking over the sample means test and it asks for future payments on property that is secured and divide by 60... is the fact that I have 2 cars that will be paid off next year going to "hurt" my chances of filing for a 7? When I do the math I come up with $75.00 for one and $65.00 for the other although my payments are over $800.00 for the 2 combined for the next year. I hope this question makes sense.

[iv65536]

I have one car that is scheduled to be paid off in March, and the payment is about $325/mo. My understanding is that they want you to average out the payment amounts over the next 60 months. That being said, the final 6 payments would total out to $1,950, divide by 60, and you have $32.50.

I believe they are looking for any payments on secured debt - this would also include the mortgage on your home as well. However, this can be a little tricky to predict, especially if you have an ARM on your home.

Further, in figuring that, I also figured in the expiration of the 2001 tax cuts (expiration at the end of 2010) and the withholding cut related to the stimulus bill (spread over 9 months in 2009 and 12 months in 2010, expiring at the end of 2010) in a look at the means test and a mock Chapter 13 plan. I think it would be very hard for a trustee to argue with allowing additional money for taxes given the exprations are current law. Doing this analysis would, IMO, allow me to claim an additional $60 per month in expenses and reduce the monthly payment in a mock 13 plan accordingly (I am single).