Ch. 7 Questions

[LittleB72]

actually

[OhioFiler]

Your actual expenses are used to complete Schedule J. The standards on the Means Test are merely means used to determine your eligibility. Over-estimating could be fraudulent. Be honest as to your expenses but include them all. I'm sure you have expenses you don't even realize. Get a good budget estimator online and plug away.

I would provide your spouse's documents to be safe. The attorney will know what is needed.

[LittleB72]

So, what actually happens if there is a significant difference between the standards and my actual expenses?

For example (purely hypothetical), let's say we net $5,000.00/month. Going by the standards/means test, we are negative 100.00/month. BUT, going by actual expenses we are + 200.00

Couldn't the trustee put us in a 13?

I'm confused LOL!

[pa308]

yes if you have exess disposable income you could be a 13

[dasmom]

I thought that as along as you passed the median income test you don't have to pass the means test. Am I missing something?

Thanks.

[mtbc]

If your disposable monthly income calculated at the end of Schedule J is too high then they can still move to push you out of 7 (thus often to 13) on the basis that you have money over for paying creditors.

[dasmom]

I guess I'm in the clear. I'm just below the median income. My disposable income is negative at this time. I have to file before my income goes up. Just not sure when to move out. Haven't paid mortgage since 11/08. I have a child I need to keep in the same school district. Thinking of trying to get apartment approved before filing for Chap 7.

[mercedesc350]

So, what actually happens if there is a significant difference between the standards and my actual expenses?

For example (purely hypothetical), let's say we net $5,000.00/month. Going by the standards/means test, we are negative 100.00/month. BUT, going by actual expenses we are + 200.00

Couldn't the trustee put us in a 13?

I'm confused LOL!

My situation was similar to the one you are facing regarding ch 7. I filed, wife did not. House was in wife's name only, and she qualified for it using just her income 3 years ago. Our combined income was way over median. Several attys told me that I simply would have to file a 13; finally found an atty who was actually willing to fight a bit, who convinced me that a 7 could work. That was in late 2008, got the discharge in Jan 2009. The trustee was not too happy overall. But, my wife was not too happy either that she was essentially being "drug in" to MY bankruptcy for debts that I had incurred. My wife made it clear that she wasn't going to fork over her income to pay my debts, she had her own probs (which she truly did).

As for your expenses, I also "thought" that I had a bit too much excess income, similar to you (around $200/month). By the time I'd talked to my atty, that pretty much went away. Any home repairs needed? Medical copays expected? (over and above the norm?) An atty that knows what he's doing in these "close" cases is worth his weight in gold (or atleast silver these days.)