Pass median test...Can they force me to Chapter 13?

[mcrabby]

I pass the median test by about 600 a month. I make 38K a year before taxes. I currently owe 35K due to medical bills, unsecured debt, and student loans. I have $10 left over at the end of the month after I pay all my bills. However, the means test shows I have $500/month in disposable income. Since I pass the median income, will they force me into Chapter 13?

[scorpion35]

I pass the median test by about 600 a month. I make 38K a year before taxes. I currently owe 35K due to medical bills, unsecured debt, and student loans. I have $10 left over at the end of the month after I pay all my bills. However, the means test shows I have $500/month in disposable income. Since I pass the median income, will they force me into Chapter 13?

U can't be forced into chapter 13
if u have $500 in disposable income u cannot file chapter 7
u will know before u file
make sure all your expenses are accounted for

[Aggie1138]

I pass the median test by about 600 a month. I make 38K a year before taxes. I currently owe 35K due to medical bills, unsecured debt, and student loans. I have $10 left over at the end of the month after I pay all my bills. However, the means test shows I have $500/month in disposable income. Since I pass the median income, will they force me into Chapter 13?

I believe if you pass the "median" test you do not have to do the "means" test. Correct me if I'm wrong.

-Aggie

[GettingGoing]

I believe if you pass the "median" test you do not have to do the "means" test. Correct me if I'm wrong.

-Aggie

You are correct in that if you pass the first part of the means test then you dont have to complete the second part of the means test however if after completing sch I & J it shows that there is disposable income the trustee can try to have your case dismissed or try to have you convert to a ch13.

[OHBOY]

mcrabby:
you didn't say anything about your expenses, i.e. what kind of vehicle you are driving/paying for (?)....just wondering....

[Aggie1138]

You are correct in that if you pass the first part of the means test then you dont have to complete the second part of the means test however if after completing sch I & J it shows that there is disposable income the trustee can try to have your case dismissed or try to have you convert to a ch13.

Do they take into account your debt? I mean since I stopped paying my cc I have money left over so I can make payments for a lawyer and have a little extra money at the end of the month. If I pay my bills I end up with little to nothing...actually in the hole some months.

[mcrabby]

Expenses

OH BOY (and others):

Thank you so much for your replys. For the past few weeks (months, for that matter), I have received little to no sleep. My financial situation has ruined so many aspects of my life, including my relationship with my fiancee.

I was making it month to month, just barely, until I had to go to the hospital for chest pain and dizziness. They sent my case to a lawyer when I couldn't come up with a decent payment (please spare me the legality or non-legality of the hospital sending my account to a lawyer. I've looked in on that already and the point is it is there for the time being, so let's assume it is there). They are now garnishing my wages 15% pre-tax (IL maximum).

I can now no longer afford to live. I don't eat out often, I drive a 2008 Impala which is absolutely necessary for my employment (I'm a Paramedic instructor and travel extensively for the job). I have student loan payments on the order of 330/month. My rent is 500/month (40 higher than allowed), and I spend prorated about 20/month on employment certifications. As a job requirement, i have a cell phone plan at 130/month (they were reimbursing me, but then decided to cut it from the budget, sticking me with the bill). Internet, once again for my job, 40.

I show NO available income after filling out the schedule I/J.

Worse part is, is I cannot afford to go to the psychiatrist. Without getting too personal, I had a very bad experience with love and also the army. I am going without counseling and it is starting to take a toll, especially at this point.

So, if I show no income on I/J and am below the median income, will my chapter 7 be tossed from court?

Once again, thanks to everyone on this forum. Your replies have been my first bit of pressure release in a while. It's great to know others are out there and have been in the same situation. Bless all of you.

Also, only 2 credit card purchases (total, $1000) in the past 4 years.

[GettingGoing]

OH BOY (and others):

Thank you so much for your replys. For the past few weeks (months, for that matter), I have received little to no sleep. My financial situation has ruined so many aspects of my life, including my relationship with my fiancee.

I was making it month to month, just barely, until I had to go to the hospital for chest pain and dizziness. They sent my case to a lawyer when I couldn't come up with a decent payment (please spare me the legality or non-legality of the hospital sending my account to a lawyer. I've looked in on that already and the point is it is there for the time being, so let's assume it is there). They are now garnishing my wages 15% pre-tax (IL maximum).

I can now no longer afford to live. I don't eat out often, I drive a 2008 Impala which is absolutely necessary for my employment (I'm a Paramedic instructor and travel extensively for the job). I have student loan payments on the order of 330/month. My rent is 500/month (40 higher than allowed), and I spend prorated about 20/month on employment certifications. As a job requirement, i have a cell phone plan at 130/month (they were reimbursing me, but then decided to cut it from the budget, sticking me with the bill). Internet, once again for my job, 40.

I show NO available income after filling out the schedule I/J.

Worse part is, is I cannot afford to go to the psychiatrist. Without getting too personal, I had a very bad experience with love and also the army. I am going without counseling and it is starting to take a toll, especially at this point.

So, if I show no income on I/J and am below the median income, will my chapter 7 be tossed from court?

Once again, thanks to everyone on this forum. Your replies have been my first bit of pressure release in a while. It's great to know others are out there and have been in the same situation. Bless all of you.

Also, only 2 credit card purchases (total, $1000) in the past 4 years.

Student loans can be forced into into forbearance which in your case would free up $330 a month to pay into a ch13 plan. I believe it depends on the district you live in determines if student loan payments are allowed on sh J.

[newbie2]

Do they take into account your debt? I mean since I stopped paying my cc I have money left over so I can make payments for a lawyer and have a little extra money at the end of the month. If I pay my bills I end up with little to nothing...actually in the hole some months.

No. When you file BK your unsecured debts (credit card payments, etc) no longer exist. You can't use the payment amounts in the figures as technically they won't exist.