I'm $400 over the monthly median.

[TITUS00]

Will the trustee let me file a CH 7 if I pass the means test after deductions?

[backtoschool]

The trustee will look at your deductions VERY closely, and the US trustee may get involved as well, especially if you have over 100k in unsecured debt.

Things the trustee will be looking for on your schedules:

1. Student loan payments. (The trustee will throw them out of the budget in a lot of districts to free up some money for a chap 13.)

2. Telecommunications expenses over $100 a month (including cell phone)

3. Cable TV over $60 a month or so.

4. DSL over $40 or so a month.

5. Housing, clothing, utility and food expenses over the IRS standards.

6. Expensive car payments.

7. Private school tuition.

If your expenses are over the average in any of the above categories the trustee will try to cut those expenses and throw you into a chapter 13. The trustee only has to find about $180 a month to throw you into a chapter 13.

[TITUS00]

According to your list my only concern might be my car payment which is $593.

[leena]

The simple answer is "no". But what do you mean "after deductions"? Its a big numbers game. If you have more than $180.00 or so left in disposible income per month, or more than roughly $109.00 left and you can pay 25% of the debt you are attempting to discharge over 60 months, you will have to do a 7.

If you have enough legit expenses (and if you are over means, in particular you would really need to prove up on those!) you can do a 7.

Good attorneys are always always a good idea, but for an above means person hoping to get a 7 they make ALL the difference.

[backtoschool]

According to your list my only concern might be my car payment which is $593.

Is your mortgage within the average for your area of New Jersey?

[leena]

The trustee will look at your deductions VERY closely, and the US trustee may get involved as well, especially if you have over 100k in unsecured debt.

Things the trustee will be looking for on your schedules:

1. Student loan payments. (The trustee will throw them out of the budget in a lot of districts to free up some money for a chap 13.

2. Telecommunications expenses over $100 a month (including cell phone)

3. Cable TV over $60 a month or so.

4. DSL over $40 or so a month.

5. Housing, clothing, utility and food expenses over the IRS standards.

6. Expensive car payments.

7. Private school tuition.

If your expenses are over the average in any of the above categories the trustee will try to cut those expenses and throw you into a chapter 13. The trustee only has to find about $180 a month to throw you into a chapter 13.

Greta list backtoschool! I have to add though that not only in my district, but in more districts now my attorney tells me, student loans are flying as a legit expense. Mostly because the interest is so bad if it the payment is differed, particularly in a 60 month Chapter 13. So, for people using student loans in their budget all hope is not lost!

[TITUS00]

Is your mortgage within the average for your area of New Jersey?

My mortgage is above the Mortgage or Rent allowance for my area. It is one of the reasons I would pass the means test, but I see where you are going with this. Will the trustee not allow it? If that is the case then why not, if it is an allowable deduction on the means test?

[TITUS00]

The simple answer is "no". But what do you mean "after deductions"? Its a big numbers game. If you have more than $180.00 or so left in disposible income per month, or more than roughly $109.00 left and you can pay 25% of the debt you are attempting to discharge over 60 months, you will have to do a 7.

If you have enough legit expenses (and if you are over means, in particular you would really need to prove up on those!) you can do a 7.

Good attorneys are always always a good idea, but for an above means person hoping to get a 7 they make ALL the difference.

The means test leaves me with a negative figure for DI.

[liz417]

I was $21k over the median, was allowed to include my student loans as an expense (varies by district/trustee), over (by a lot) on a few of the IRS Standards (make sure to save all receipts to prove the expense) and the UST did not get involved with my case. As I said before, it's all about your numbers.... (and if you have an attorney willing to put in the extra work if needed)

Good Luck!

[backtoschool]

My mortgage is above the Mortgage or Rent allowance for my area. It is one of the reasons I would pass the means test, but I see where you are going with this. Will the trustee not allow it? If that is the case then why not, if it is an allowable deduction on the means test?

You have a couple of other circumstances that we discussed in other threads that will affect how your case is looked at by the trustee. You have a wife that earns a high income that is not going fully towards expenses and that means that your schedules are going to be looked at VERY VERY closely (think proctology exam here...)

If your house is over the median, the trustee may say, "sell it, get a cheaper house and pay your debts."

Same with car.

It will most likely be the US Trustee that will say this, not the local trustee.

I believe that the combination of your wife's salary, you being over the median, and your higher than average car and house payments might red flag you for a "totality of circumstances" dismissal from the US Trustee.

If you do a search on cases that end up with the US trustee, they are often over the median cases where there are high housing and car costs.

Now of course I can't read the mind of the US Trustee or the local trustee, and you may squeak through the process, but because of your total scenario, your schedules are going to be looked at very very closely, and I am just playing devil's advocate to help you prepare.

Here a link to the thread where the OP's wife's income is discussed.

http://www.bkforum.com/showthread.php?p=329634#post329634

[TITUS00]

You have a couple of other circumstances that we discussed in other threads that will affect how your case is looked at by the trustee. You have a wife that earns a high income that is not going fully towards expenses and that means that your schedules are going to be looked at VERY VERY closely (think proctology exam here...)

If your house is over the median, the trustee may say, "sell it, get a cheaper house and pay your debts."

Same with car.

It will most likely be the US Trustee that will say this, not the local trustee.

I believe that the combination of your wife's salary, you being over the median, and your higher than average car and house payments might red flag you for a "totality of circumstances" dismissal from the US Trustee.

If you do a search on cases that end up with the US trustee, they are often over the median cases where there are high housing and car costs.

Now of course I can't read the mind of the US Trustee or the local trustee, and you may squeak through the process, but because of your total scenario, your schedules are going to be looked at very very closely, and I am just playing devil's advocate to help you prepare.

Here a link to the thread where the OP's wife's income is discussed.

http://www.bkforum.com/showthread.ph...634#post329634

I am basing my projection of being $400 over the monthly median using my wife's full salary going towards the benefit of the household, so that might lower the red flag just a bit. It seems that my issues will be the house and car being somewhat over the average.

[backtoschool]

I am basing my projection of being $400 over the monthly median using my wife's full salary going towards the benefit of the household, so that might lower the red flag just a bit. It seems that my issues will be the house and car being somewhat over the average.

Using your wife's full salary will help quite a bit with the red flags. How much is your house payment over the median? (ie, is it a $7,000 a month payment? Or is it simply a few hundred dollars over the median?)

[TITUS00]

Using your wife's full salary will help quite a bit with the red flags. How much is your house payment over the median? (ie, is it a $7,000 a month payment? Or is it simply a few hundred dollars over the median?)

Including both mortgages about $800 over the allowance.

[backtoschool]

Including both mortgages about $800 over the allowance.

Since I am playing Devil's advocate, I would also consider how much equity you have in the house. I believe you said you had about 11k equity after the Federal homestead exemption is applied. The trustee will look at whether forcing you to sell your house and get a cheaper one will free up that equity to pay your unsecured debt. Equity, combined with an over the median house payment sometimes causes trustees to go after the house. (again it is usually the US Trustee that would do this)

[TITUS00]

Since I am playing Devil's advocate, I would also consider how much equity you have in the house. I believe you said you had about 11k equity after the Federal homestead exemption is applied. The trustee will look at whether forcing you to sell your house and get a cheaper one will free up that equity to pay your unsecured debt. Equity, combined with an over the median house payment sometimes causes trustees to go after the house. (again it is usually the US Trustee that would do this)

The equity is actually less than that. It is not more than 5K, if that. I don't think forcing a sell would make sense considering the closing costs. Just the brokers fee is 5%, with out accounting for taxes, transfer, and title search fees.