Student Loan Garnishment / IRS payments - DMI (possible pro se)

[debrouillant]

Hello All - been lurking for about a week, read a ton of posts but cant find answers to some particular questions.

I've been looking into filing Ch 7 for a while now, but February 1st would be the earliest I could file (income went drastically down in August last year) to be below median for CA. My questions is regarding DMI on Sch I/J. While my income varies every month (I work part-time, as needed), I am currently having 15% of my net income garnished by the United States Department of Education (old student loans). The garnishment just started. Would I be able to count this as a reduction of income in Schedule I, or, alternatively, as an expense on Schedule J?

It wouldnt make much of a difference if I could actually just include the income I am currently receiving (about $1000/mo less than my 6-month average), but since my income does vary, I wonder if putting what I got last month/this month on Schedule I would raise some eyebrows.

Also, I have an installment plan with the IRS for unpaid taxes, I assume it wouldnt be a problem to include that payment on Schedule J? (Even though I will probably not make any payments when I file?)

PS Does anyone know if you rent a room in a house, and there is no actual lease, just a month-to-month pay in cash type of arrangement, is that disclosed anywhere?

[backtoschool]

Most districts do not allow you to claim student loans as an expense since they can be put into forbearance during bankruptcy. Your income is not reduced if you are being garnished for a student loan payment. Your gross income is still the same.

If you cannot prove your actual housing expenses, you will need to take the IRS allowed amount for your family size and district.

[debrouillant]

Well my take-home pay is reduced, but I get the point.

For housing, I was wondering if I had to show anything in Schedule G.

Anyone have any input on the IRS installment agreement, or whether or not income calculations can be made on the basis of the last two month's income for Sch I?

Thank you

[tcreegan]

Hi debrouillant,

If you are month-to-month, you don't really have a lease, I doubt you need anything on Sched. G

Sucks on the student loans...

Tom in Colo

[tcreegan]

...almost forgot...IRS payments...from my very limited knowledge...

If you aren't discharging them, Sched E, priority unsecured (unless they have a lien on your house)

Sched J, line 13, installment payments, other

Means-test, line 25, other necessary expenses, taxes

...definitely need someone to confirm this, just my best guess..

Tom in Colo

[OhioFiler]

PS Does anyone know if you rent a room in a house, and there is no actual lease, just a month-to-month pay in cash type of arrangement, is that disclosed anywhere?

What do you mean by disclosed? Your petition will include your legal residence. Your landlord will not be notified since you have no formal lease.

I'm in agreement with backtoschool.

[Cristo]

tcreegan is correct on the taxes. I was on an installment plan and that is what I did. If you are filing a chapter 7 and they are more than 3 years old you may be able to discharge them.