Confused about means test

[tknj99]

HI all,
I am over the FL income limit by 7k. In addition i am underwater on my primary residence and carry 2 loans. I am thinking about walking away.. but if im not making the mtg payments, dont think ill pass the means test. Have any of you stopped paying for several months with foreclosure looming and then made a few payments before filing to qualify for Ch7 and list as redeeming property but then dont sign re-aff?
Would this be possible?
Also - what about all of the extra money by not paying mtg. Ive read people say that they save it up for moving and rent. But what if the process for me takes another year (waiting to be sued by cc's) - that would be a substantial savings in the tune of over 20k..
Thanks for the help

[ssmdem]

I'm in Florida in a similar situation. Except we're killing time until we fall under the median - job situation has changed.

However, I don't think you can just make 1 or 2 payments on a late mortgage. I believe once it's more 60 days late - you owe all back payments or they won't take anything - ?? Could be wrong, that's just how I understand it.

We wanted to wait to quit paying until after we discharged for that reason, so we could file sooner - but we honestly couldn't pay the mortgage right now if we wanted to. Once I quit using credit cards, there wasn't enough money to put food on the table if I was still paying the mortgage too.

[kmbk2b]

Check with your attorney, but it's my understanding that the means test takes into consideration any debts/payments that are "contractually due." This means that you do not have to be current on these debts, just responsible for them at the time of filing. Our attorney says you can include mortgage payments on the means test, even if you haven't paid your mortgage in months.

[tknj99]

Do you know if that would also include credit card payments that havent been made in a year and are now in collections? If so, i wonder if its just the debt owed amount divided by 12 months for each card.

[keepinitreal]

Do you know if that would also include credit card payments that havent been made in a year and are now in collections? If so, i wonder if its just the debt owed amount divided by 12 months for each card.

No, you don't include credit card payments in the means test.

[SMinGA]

No - just obligations that continue after the bankruptcy.

Keep in mind that the means test & schedule J (expenses) are not the same thing... Means test is to determine if there is a presumption of abuse, schedule J is to look at your actual expenses.

Do you know if that would also include credit card payments that havent been made in a year and are now in collections? If so, i wonder if its just the debt owed amount divided by 12 months for each card.

[youngnbroke]

As far as the means test goes, i read somewhere in this forum that in order to include your current mortgage on the means test, you have to make it "look" like you intend to keep the property (if you don't, then just don't reaffirm the mortgage) But otherwise you have to use the "default" amount for each state. So I thought you had to be current on the mortgage in order to avoid the questioning of that "extra expense" on the means test??! No?! Otherwise..shoot! What the heck am I doing still paying!!!

From Nolo's means test: If you are claiming deductions for payments on property that you plan to surrender to the creditor during bankrupcty, note that many courts will not allow that deduction. Check with an attorney in your area to determine what courts allow in your area.