Nolo Mean Test

[sunshinepa]

Can someone who has previously filed provide some information on the means test? Can you claim both transportation and ownership costs? I am totally confused on this.

If I get both, I would only have 28.00 a month of DMI.........without it looks like roughly 120 DMI and I really want a ch 7.

Thanks!

[momofthree]

If you have a car payment, you get to claim both ownership and operating expenses.

If you do not have a car payment, the ownership expense may or may not be allowable depending on your district's practices.

[sunshinepa]

MOT.........thanks for the response. I do not have a car payment..........ironically, 4 yrs ago I paid cash (20 g) for my car.......ain't it amazing how fast things change!

Anyway, I plan on using the Federal exemptions as they are allowed in PA. Just wondered if anyone else claimed both.........seemed a bit confusing to me.

[gmk]

I used both and was OK. However, as momofthree said, this is very district specific. Your attorney will know what flies in your district.

[justbroke]

Your disposable income can actually be as high as $182.50/month.

It's only a "presumed" abuse when it's over $109.58/month but you can rebut the presumption if that disposable income is less than 25% of 60 times your disposable income.

[geye]

I just read a court opinion on this from our district. It said that they had interpreted the car allowances on the means test to be just that-allowances. Even if you did not currently have a car payment, it was safe to assume that at some point you might. It also said it wouldn't be fair to penalize those who just paid off their car last month compared to someone that had 2 car payments left, with all else being equal. They also said that if the test wasn't meant to allow it, they would have used the word "actual" instead of "allowance "--like they do later on in the test.

But, it also said that they were aware that other districts had chosen a different interpretation.

[lesliesjoy8]

MOT.........thanks for the response. I do not have a car payment..........ironically, 4 yrs ago I paid cash (20 g) for my car.......ain't it amazing how fast things change!

Anyway, I plan on using the Federal exemptions as they are allowed in PA. Just wondered if anyone else claimed both.........seemed a bit confusing to me.

Hopefully the value of your vehicle is under $8500. I was told by my attorney that any asset valued over that will be seized and sold. And yes, it's absolutely amazing how quickly and drastically financial situations can change. Let's hope for us all that they'll change in the opposite direction SOON!