Confused in Means Test vs. Schedule J

[mhman]

I have been confused in means test and schedule J.

In the means test, I should use a standard house rent expense which is $200 lower than the actual one.

In the means test, I can't put "Student Loan" which is over $500/month.

However, I can put the acutal expenses for the house expense and the student loans in Schedule J.

The difference, e.g., over $700, between Means Test and Schedule J will be a decision factor for Chapter 7.

Did I misunderstand? Any clarification will be highly appreciated.

[backtoschool]

Whether you can count your student loans on schedule J varies by district and is somewhat controversial. There are some people that ended up having to defend those student loan expenses with the US trustee and ended up in chapter 13 because that expense was removed, and there are some people that were allowed to keep the expense. Your lawyer will know the norms for your district.

If you are close to the median or over the median and you put student loans as a "special circumstance", then you may trigger a red flag that will get the US trustee involved in your case.

Of course ymmv.

You will be able to use your actual housing expenses on your schedule.

[LimpDisc]

Have you tried using the online means test?

Line 21. Housing & Utilities Adjustment if you contend that the process set out in
Lines 20A and 20B does not accurately compute the allowance to which you are entitled under the IRS Housing and Utilities Standards, enter any additional amount to which you contend you are entitled, and state the basis for your contention in the space below:

http://www.legalconsumer.com/bankruptcy/nolo/

[mhman]

Have you tried using the online means test?

Line 21. Housing & Utilities Adjustment if you contend that the process set out in
Lines 20A and 20B does not accurately compute the allowance to which you are entitled under the IRS Housing and Utilities Standards, enter any additional amount to which you contend you are entitled, and state the basis for your contention in the space below:

http://www.legalconsumer.com/bankruptcy/nolo/

Thanks for the good info.
If I input my house rent expense in Line 21, my disposable income will be -$1,300 per month (even without the student loans)

As long as the rental property expesnises and my house rental expesne can be accepted, I will be OK. -$1,300/month..... no doubt.

BTW, my attorney told me that I can keep collecting a rent from the tenant since my rental property expenses ($1,900) is larger than the rent ($1,400).

I don't know if this can cause any problem to UST since I have stopped paying the mortgages from September.