$70.00 Over Median for WI....

[Faust]

Before I claim any expenses on the means test, I am over $70.00 for a family of 3 in WI. What are my chances of getting into a 7 vs 13?

Thanks!

[JEM]

Before I claim any expenses on the means test, I am over $70.00 for a family of 3 in WI. What are my chances of getting into a 7 vs 13?

Thanks!

I met with one attorney (first consultation!) on Wed. and for the last 6 months look back (July- Dec) we are over the median by $900ish. The attorney didn't seem to think that would be a big deal to overcome, BUT we'll be waiting it out a few months to let some "one time" income drop off which will put us under.

Would waiting a month or two bring you under??

[justbroke]

Before I claim any expenses on the means test, I am over $70.00 for a family of 3 in WI. What are my chances of getting into a 7 vs 13?

Being eligible to receive a discharge in a Chapter 7 case... really has nothing to do with being over/under median. It is really about your income and expenses. I have seen under-the-median income cases get dismissed/converted because the debtor(s) had disposable income to support a Chapter 13.

Since you're "only" $70 over the median, I'd be worried more about your "allowable" expenses.

[Faust]

Being eligible to receive a discharge in a Chapter 7 case... really has nothing to do with being over/under median. It is really about your income and expenses. I have seen under-the-median income cases get dismissed/converted because the debtor(s) had disposable income to support a Chapter 13.

Since you're "only" $70 over the median, I'd be worried more about your "allowable" expenses.

I am confused:

What do you mean by this:

"Since you're "only" $70 over the median, I'd be worried more about your "allowable" expenses."

The $70.00 is over the Median income for my state for a family of three. That is before I take off any amounts for expenses, real or fed/state allowed. I assume that after deducting allowed fed/state expenses that I should be able to qualify for a 7. Is that wrong?

Thanks!

No, income will not be changing. No raises but increases in Healthy insurance.

[justbroke]

"Since you're "only" $70 over the median, I'd be worried more about your "allowable" expenses."

The $70.00 is over the Median income for my state for a family of three. That is before I take off any amounts for expenses, real or fed/state allowed.

Let me put it simply. Do not worry about the $70 being over the median income. You need to concentrate on your expenses and how your "bottom line" disposable monthly income is calculated on the Means Test.

Have you taken a sample Means Test? There's one at LegalConsumer.com.

[Llelxon]

I originally thought as well that if your under the median it doesn't matter, but it sure does. You cannot have much disposable income and file chapter 7 no matter how far under the median you are, you still have to show that you cannot pay your debt.

[Faust]

Ahh, I think I get it now!

Example:

WI Median Income for 3 persons: $5500.00

Example income: $5000.00
Less expenses: 500.00
DMI: $4500.00

That would mean you would have top pay "even though you were under the median income". Is that right?

If I use the online means test I have -$122.00 DMI.

[justbroke]

That would mean you would have top pay "even though you were under the median income". Is that right?

Yes, any disposable income over about $182.50/month is considered an abuse of the provisions of Chapter 7... and that the Debtor could fund a Chapter 13.

If I use the online means test I have -$122.00 DMI.

This is good! You want that "disposable income" to be much less than $109.58 ($6,575/60) as possible.