Means Test and Medical Expenses

[kcfaninin]

Hi,
We retained an attorney for the 2nd time in hopes of qualifying for a Chapter 7. We plan to file in January. We are above the median income, but have a HUGE mortgage payment. Anyway, received an email from the paralegal today stating she was working on our means test and needed some info.

She is requesting receipts for all medical expenses from July 1 to current, which I can provide. We are a family of 5 and have had around $10,000 of out of pocket expenses so far this year. She is only asking for the last 6 months. The majority of these expenses occured prior to July.

We have had several consultations and one previously retained attorney (we have since dumped him) and they all took the total expenses so far and divided by 12 months to get our average monthly medical expenses.

The standard we can claim is $300/mo. But, in reality we average over $900 per month. I thought we would be able to claim the additional $600 on the means test. Our high medical expenses are very typical for us each year due to daughter's heart condition.

Is this paralegal right by requesting the prior 6 months of expenses?

[whipster1]

Yes, but some attys will use the yearly and divide by 12, which in your case seems to be helpful. Be sure and explain about the ongoing medical expenses on schedule J.

[kcfaninin]

Yes, but some attys will use the yearly and divide by 12, which in your case seems to be helpful. Be sure and explain about the ongoing medical expenses on schedule J.

Ok, Thanks!! It would benefit us to list the yearly amount divided by 12, but she seemed insistant on using the last 6 months.