Sched J, student loan and DMI ??

[SunkShip]

My schedule J includes my student loan payment of $150 a month, and because of an income calculation error by lawyer we look like a DMI of $100 even with the student loan amount.

Can the trustee disallow the student loan and effectively change our DMI to $250 a month and force us into a chapter 13?

I have already contacted the lawyer asking him to correct my income to avoid this problem, but he has a history of telling us "It will be fine" and "Don't worry about it." I expect him to not want to make the amendment with our 341 only 10 days away. Have not heard from him since I e-mailed this concern last week.

UGH! Any advice? I am so sick of this bankruptcy and this relaxed lawyer.

[dumpinmydebt]

From what I understand, you cannot include student loan payments on Schedule J. It's an unsecured non-priority debt. It can also be put on forbearance during financial hardship, which means you would technically not be liable for the payment for a period of time.

But check to see if you can, it can depend on district. I'm going to assume that it's okay for your district. If you aren't sure, I'd call a few attorneys and ask them.

I'd be bugging the crap out of him everyday to make sure he made the correction on your income also.

[SunkShip]

Thanks DumpinMyDebt, that is what I thought too, but lawyer included that and keeps saying not to worry about it. "The numbers are what they are." is his favorite statement.

We will be fine if he recalculates our income based on 24 pay periods per year, not the 26 he used. Then our DMI will be the negative even without the Student Loan. I am getting very nervous about his no stress style. It is STRESSING me out! I will be pushing monday for him to fix this.

[dumpinmydebt]

Thanks DumpinMyDebt, that is what I thought too, but lawyer included that and keeps saying not to worry about it. "The numbers are what they are." is his favorite statement.

We will be fine if he recalculates our income based on 24 pay periods per year, not the 26 he used. Then our DMI will be the negative even without the Student Loan. I am getting very nervous about his no stress style. It is STRESSING me out! I will be pushing monday for him to fix this.

Hmm, isn't that a nice thing to say, LOL!

I feel that stress too. Then I grab a beer.

Hang in there.

[SunkShip]

I am going grocery shopping then that beer is mine. Should I grab you one too? LOL

[backtoschool]

Most districts do not allow student loans on schedule J. There are a few exceptions, but most do not allow student loan payments because the student loans can be put into forbearance. If you are close to getting kicked into a chap 13 and you have the student loan payment there, then the US Trustee will take a close look at removing the loan and kicking you into a 13. I would come up with $150 a month of other expenses and not put the student loan there.

[SunkShip]

I won't even have to come up with $150 more expenses. The lawyer thought paychecks come every 2 weeks, when they are twice a month. That extra .33 weeks of pay was almost $500. It looks like I need my schedules amended. I just wanted to make sure that when he tells me it will be fine I can counter with why I do not think it is fine. (The risk of being rolled into a 13 is enough to scare the crap out of me!)

I just need to make him fix it, he is reluctant/busy/lackadaisical/doesn't like me...whatever. I don't know how to explain his overly relaxed nature. All I know is I have had to push the whole way along, and I don't like being pushy.

[tcreegan]

Hi SunkShip,

Just some words of encouragement, usually when a lawyer is not worried about it, their experience tells them it is not a problem, of if it does come up it is easy to fix.

I hope this is the case with your lawyer!!

Tom in Colo

[SunkShip]

Thanks Tom, I really hope that is the case! I am making myself nuts at this point.