Mortgage expense on means test

[freakedout]

We are over the median income so need to complete the means test. The housing-mortgage/rent allowed for Michigan is 878. My mortgage payment is 2400. Do I get to use my actual mortgage payment in calculating disposable income or do I have to use the lower state amount. This will determine if we can go chapter 7 or 13. We want to keep the house and are current.

[justbroke]

You use your actual.

[Ann]

We are over the median income so need to complete the means test. The housing-mortgage/rent allowed for Michigan is 878. My mortgage payment is 2400. Do I get to use my actual mortgage payment in calculating disposable income or do I have to use the lower state amount. This will determine if we can go chapter 7 or 13. We want to keep the house and are current.

What county are you located in?

[freakedout]

I am in Kent county. When I took the nolo test online it popped in "rent/mortgage allowance" of $878. Don't take my word. I am just working on this by myself for now. We have had one brief meeting with an attorney so....

[jwmc1]

Hey, Freakedout what did you discover? My payment is higher than the allowed amount as well

[justbroke]

Hey, Freakedout what did you discover? My payment is higher than the allowed amount as well

Your mortgage payment can exceed the amount listed in the "IRS Guidelines". In 2005, the BAPCPA was created which allows you to deduct, on the means test, your payments on secured debt... like your home... in total.

My mortgage payments are most of the payment listed below in my signature. My mortgage payments exceed the "allowance" here (for my county and family size of 4) by at least $3K.

You have to understand the Means Test. On the line where it has the "allowance" you put either the IRS allowance (if you rent), or the IRS allowance less your mortgage payment (if you own). If the amount is negative, you put $0.00. You then get to claim the entire mortgage expense on line 47, including but not limited to taxes and insurance.