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Vehicle Allowance on Means Test.. ???

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    Vehicle Allowance on Means Test.. ???

    I am so confused. On the means test for my area, the vehicle operation expenses for two vehicles is $402. Great!

    Okay, next, the Vehicle Ownership or Lease Expense for the first vehicle is $489. The second vehicle expense allowed is also $489.

    So, currently, I have a $427/month van payment and that is it. The attorney told us we should/need to trade in my husband's car to have an additional car payment and to refinance our van, but we are going to trade it in instead.

    So, we are looking at new van payment of about $480 & a new car payment of about $380.

    (New Situation) Line 23 equals = $109 and Line 24 = $9 & MDI = $43
    (Current Situation) Line 23 = $62, Line 24 = $489 & MDI = $71

    So, the difference of having an additional $450/month car payments only equals a $28 difference in the MDI? SERIOUSLY? That's IT?? Is it really even worth it??

    Also, what happens if the van payment ends up going OVER the $489 "allowed" expense? Then does the UST look at it as a "luxury" vehicle and question it? We area already over the median by 7K, so I don't want to raise even MORE eyebrows!

    I am still waiting to hear back from my attorney. Currently waiting on auto dealer to call me back with the final numbers before we agree.
    Filed Ch.7 on 03/17
    Statement of Presumed abuse filed 707(b) 05/03
    Statement of Non-Abuse filed!!
    Discharged 06/23/10

    #2
    To help you with the calculations we need to know how many months the cars will be financed.
    Stopped Payings CC's: 8/14/2009 | Retained Attorney: 9/23/2009 | Filed CH 7: 12/7/2009 | 341 Meeting: 1/21/2010 - Complete | Discharged: 4/9/2010
    "One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."

    Comment


      #3
      If you will be financing each vehicle for 72 months the numbers should look something like this.

      Line 23
      a. $489.00
      b. $480.00

      The main column will show $9.00

      Line 24
      a. $489.00
      b. $380.00

      The main column will show $109.00


      Subpart C: Deductions for Debt Payment

      Line 42
      a. $480.00
      b. $380.00
      c. Mortgage payment ?

      The main column will show $860.00 for the 2 car payments. Please keep in mind that the main column also includes monthly amounts for any other secured debt payment.

      I am thinking your attorney wants the additional car payment for schedule J.
      Last edited by LimpDisc; 12-28-2009, 07:35 AM.
      Stopped Payings CC's: 8/14/2009 | Retained Attorney: 9/23/2009 | Filed CH 7: 12/7/2009 | 341 Meeting: 1/21/2010 - Complete | Discharged: 4/9/2010
      "One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."

      Comment


        #4
        Ahh okay - here's the actual numbers. We ended up getting the cars last night.

        Car 1) $400/60 months
        Car 2) $536/72 months

        Mortgage is 1389/month.
        Filed Ch.7 on 03/17
        Statement of Presumed abuse filed 707(b) 05/03
        Statement of Non-Abuse filed!!
        Discharged 06/23/10

        Comment

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