how do you explain a negative bottom line?

[sval]

I am stumped on this one. When I do my monthly payments without the cc's I am no longer paying on in lieu of filing Ch 7 I am showing a negative. Isn't that a red flag to a trustee as in how am I going to pay for even the basics of living? My daughter pays me what she can towards a bi monthly Dr. she sees due to a chronic medical issue -which is $125.00 per visit ( no insc. ) averaging $90.00-$100.00 pr payment towards. If I look at the numbers on paper I even wonder how I live.

[Dee]

A negative DMI is pretty common. Most people borrow from one category to pay another each month. We have a negative DMI of over $700 on our Schedule J because we are currently using my husband's unemplyment compensation, but don't have to list that as income in our district. Once it runs out (in a month!) we will just have to cut even more. Not sure where, but there we are...

[ccsjoe]

The trustee will not care about your bottom line unless it is grossly negative or positive enough to be questioned into a 13 or a dismissal. I think the real issue here is you looking at your numbers and figuring out how you are going to live within your means.

[Fallonedward]

When we ran our numbers last night with our attorney, we got negative $1100.00 due to not including Hubby's UI (our attorney has stated that we don't have to list that as income in our district). As long as hubby can find a job in 10 months we should be ok, if not we will be borrowing from one category to pay another until he finds work. I feel we have a very solid plan and we will be able to make this work

A negative DMI is pretty common. Most people borrow from one category to pay another each month. We have a negative DMI of over $700 on our Schedule J because we are currently using my husband's unemplyment compensation, but don't have to list that as income in our district. Once it runs out (in a month!) we will just have to cut even more. Not sure where, but there we are...

[keptdigging]

I filed with a seriously negative DMI. Obviously it isn't sustainable. But that's my problem, not the TTs. My TT asked general pro forma questions and just one about my assets.

If it were a "red flag" then somebody might take a more careful look at your case. But if your information is accurate it'll hold up.

In my case, the answer as to how a negative DMI is that I've been selling assets to pay necessary expenses, and my attorney took the position that "selling your stuff is not income." Theoretically it could have been challenged but there was not a peep. Also "challenged" isn't the end of the world, just means you have to dig in and fight.

Anyway you don't have to prove that you can "live within your means" to receive a discharge. That's your private problem.