Hi fellow BK'ers, Newbie here. Thanks to all for all the very professional insights and advice.
We're going to do a joint Ch7 and I have a few questions on median income & means test.
I went unemployed in Dec-2009. We're waiting some time for our 6 month average income to dwindle. Right now it appears we won't fall under the median income test until after May-2010, June filing.
1) April is a three paycheck month for spouse and I so if it weren't for that extra paycheck(s) we could fall under the median test in April, file in May. The question is, is money earned when the money (direct deposit) actually hits the checking account or is it for the time period that the money was earned? I can delay my unemployment deposit until May by simply certifying for benefits a couple of days late. This will put the actual money in my hands in May but it was for unemployment earned in April. We would then fall under the median income test through April.
2) In filling out Form 22A are we allowed to use the home mortgage numbers (line 42) even though we will be letting the house go via foreclosure?
3) Line 25 in 22A allows for income taxes paid. Is this the average of taxes paid over the 6 month look back period or is it at current level? Big difference in the calculation. How do we calculate that? We will owe taxes for 2009 so using payroll deductions is an undershoot. Do we take our 2009 total tax liability and divide by 12 or factor it for how many months in 2009 are included in our 6 month look back?
Sorry if the questions are confusing or if they have been answered before (I couldn't find similar Q&A in search).
As an aside my attorney, who is also a trustee, is a rather "black and white" type of guy. He is somewhat firm on waiting for the us to fall under the median income as opposed to the means test. I suppose he wants this to be as cut and dry as possible? I on the other hand want to get the process moving along as quick as possible as I have a medical bill that's in the hands of a collector and I would guess it will be rather difficult to keep them at bay for another 4 months without suing us. So I'm doing a rough out of the means test for further discussions with the attorney.
Thanks for your help.
We're going to do a joint Ch7 and I have a few questions on median income & means test.
I went unemployed in Dec-2009. We're waiting some time for our 6 month average income to dwindle. Right now it appears we won't fall under the median income test until after May-2010, June filing.
1) April is a three paycheck month for spouse and I so if it weren't for that extra paycheck(s) we could fall under the median test in April, file in May. The question is, is money earned when the money (direct deposit) actually hits the checking account or is it for the time period that the money was earned? I can delay my unemployment deposit until May by simply certifying for benefits a couple of days late. This will put the actual money in my hands in May but it was for unemployment earned in April. We would then fall under the median income test through April.
2) In filling out Form 22A are we allowed to use the home mortgage numbers (line 42) even though we will be letting the house go via foreclosure?
3) Line 25 in 22A allows for income taxes paid. Is this the average of taxes paid over the 6 month look back period or is it at current level? Big difference in the calculation. How do we calculate that? We will owe taxes for 2009 so using payroll deductions is an undershoot. Do we take our 2009 total tax liability and divide by 12 or factor it for how many months in 2009 are included in our 6 month look back?
Sorry if the questions are confusing or if they have been answered before (I couldn't find similar Q&A in search).
As an aside my attorney, who is also a trustee, is a rather "black and white" type of guy. He is somewhat firm on waiting for the us to fall under the median income as opposed to the means test. I suppose he wants this to be as cut and dry as possible? I on the other hand want to get the process moving along as quick as possible as I have a medical bill that's in the hands of a collector and I would guess it will be rather difficult to keep them at bay for another 4 months without suing us. So I'm doing a rough out of the means test for further discussions with the attorney.
Thanks for your help.
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