Means test accuracy?

[Depressed]

I've done the online means test. I live in Utah and have a monthly income of $7200. When I plug in the rest of the numbers there isn't much left over and it says I could file Chapter 7. I'm afraid however, the attorneys will come up with some other numbers and want to push me into a Chapter 13. I REALLY DO NOT WANT TO DO A CHAPTER 13. If it comes to that I'll try to settle with the banks.

Whats been your experience when doing the online test versus visiting the attorneys?

I've got 110K in CC debt that hasn't been paid on since last June. Will be looking for an attorney later this month.

[HHM]

You need to run some numbers. I think you might be overly optimistic on what you think you may be able to settle your debt for. The "average" settlements are around 40% (yes, some will settle for less, but some won't, so to likely settle ALL your credit card debt, you will need at least 40%, LUMP SUM CASH ready to go).

A chapter 13 is sort of liked a forced settlement and you can pay the amount over time. So, I wouldn't rule out a chapter 13 if you don't qualify for a chapter 7. The ONLY TIME you do debt settlement over chapter 13 is if you have non-exempt assets and cannot afford to pay the liquidation value of your bankruptcy estate in a chapter 13. Debt settlement is usually the TRUE LAST resort because 9 times out of 10, it is more expensive, there are tax consequences, and-get ready for it---debt settlement is JUST AS BAD on your credit report.

[jribe]

you can try posting the numbers you used here and we can give you a rough idea. It's usually the expenses. There's people that think they can keep the same lifestyle and file a chapter 7; when a trustee may think you have to live a little more frugal and finds money to fund a ch.13 plan.

I've done the online means test. I live in Utah and have a monthly income of $7200. When I plug in the rest of the numbers there isn't much left over and it says I could file Chapter 7. I'm afraid however, the attorneys will come up with some other numbers and want to push me into a Chapter 13. I REALLY DO NOT WANT TO DO A CHAPTER 13. If it comes to that I'll try to settle with the banks.

Whats been your experience when doing the online test versus visiting the attorneys?

I've got 110K in CC debt that hasn't been paid on since last June. Will be looking for an attorney later this month.

[coolmom04]

I had the same fears and several people told me here that the numbers the attorney comes up with usually isn't anywhere near the numbers I will come up with... and they were right.

The attorney I saw first had us failing the means test for ch7 big time, but with digging a little... and buying another vehicle to add another monthly expense, we now pass

[Depressed]

you can try posting the numbers you used here and we can give you a rough idea. It's usually the expenses. There's people that think they can keep the same lifestyle and file a chapter 7; when a trustee may think you have to live a little more frugal and finds money to fund a ch.13 plan.

I'm using the means test over at legal consumer.com

Zip 84043
5 in the family all under age 65
Married filing jointly
Own 2 vehicles 1 paid off, the other has 15 payments of $309 left(77 over 60)
1200 a month in taxes
50 for term life
100 for telephone/internet
420 for health/dis. ins &HSA
200 for the church
2120 for house/ins/taxes

[LimpDisc]

I'm using the means test over at legal consumer.com

Zip 84043
5 in the family all under age 65
Married filing jointly
Own 2 vehicles 1 paid off, the other has 15 payments of $309 left(77 over 60)
1200 a month in taxes
50 for term life
100 for telephone/internet
420 for health/dis. ins &HSA
200 for the church
2120 for house/ins/taxes

I put your numbers into the means test and it shows $83.00 for disposable income and $9,510 over the median income. The only way to get really accurate numbers is for you to visit a few attorneys. My guess is that your missing expenses (Line 38: Education Expenses?) on the means test with a family of 5.

[Depressed]

When I run the test, I come up with -474 on line 50, DMI. I must be doing something differrent. I think it must be the vehicle deductions. Do I take the Vehicle operating expense on line 22 for the two vehicles ($422)and the ownership expense for 1 vehicle on line 23? ($412 with the adjustment for the $77 spreadout over 60 months.)

[ForumReader]

I put your numbers into the means test and it shows $83.00 for disposable income and $9,510 over the median income. The only way to get really accurate numbers is for you to visit a few attorneys. My guess is that your missing expenses (Line 38: Education Expenses?) on the means test with a family of 5.

To the OP, what about food expenses for the family? I do not see it on the list from your earlier post. Was that included in the means test? I apologize in advance if I overlooked something.

[Depressed]

Line 19A? I haven't made any chages to it. It list the National Standards of $1632 for a family of five.

[LimpDisc]

When I run the test, I come up with -474 on line 50, DMI. I must be doing something differrent. I think it must be the vehicle deductions. Do I take the Vehicle operating expense on line 22 for the two vehicles ($422)and the ownership expense for 1 vehicle on line 23? ($412 with the adjustment for the $77 spreadout over 60 months.)

My bad.

I only used deductions for one car. I think your OK if you show that much in the negative.

[Depressed]

Thanks. I need to find an attorney.