Means test for me?

[DYLAN150]

Went to two attorneys and all they did was look up my income and single status on a chart and said no go on chapter 7. Right into a chapter 13. One attorney said because of my age (old) and other things, I could just ride this situation out. He said I would just have to handle the phone calls and lawsuits.

My income is 60K per year before adding in social security of 12K per year. (72K total income)
Single, Washington state. House payment $1300 and car $350. $200 medical expense

one attorney wanted $3500 for chapter 13.

[tobee43]

what's your debt, if you don't mind me asking??

[HHM]

Why are you shocked? Median income for HH=1 in WA is $49,930. It's not as if you are a "little bit" over median, you are A LOT over median. Any attorney would be doing you a disservice (and probably committing malpractice) if they set an expectation that you could do a chapter 7. Also, most attorneys ARE NOT going to do a full blown means test as a FREE consult, the means test is a form of legal work product, it would be like doing to your dentist and asking for free x-rays.

The fee sounds reasonable.

Given your circumstances, a chapter 13 is probably preferable to "riding" it out. Honestly, I have never seen anyone successfully ride it out, it is a constant cat and mouse game, credit stays ruined, its really not a life style anyone would want. Riding it out is based on an unjustified, and frankly, stupid fear of bankruptcy.

[DYLAN150]

HHM: I paid $100 bucks. I am not shocked, but reading some postings it seems one or two posters have a higher income and are doing a chapter 7, so I was just wondering. Thanks for answering.

[HHM]

Is it possible, in the "exact right" circumstances, yes. But on average, it is the exception not the rule that a person over median is able to stay chapter 7. Generally, above median income debtors that get chapter 7 have pretty high secured debt expenses, think mortgage payment (which means, even after BK, they are in a pretty precarious financial position) or some unique circumstances (high medical, etc).

Rule of thumb on median income about 10%. If you are 10% above median, or less, then there is a shot at getting past the means test if you have a car payment, above average mortgage expense, 401(k) loan repayment and reasonable 401(k) contribution. Above that 10% threshold, it gets pretty difficult to get passed the means test, so you cannot set an expectation about being chapter 7. There are exceptions to every rule, but generally, if you have above median, you need to expect to pay "something" back, but chapter 13 is a far better option than ANY of the alternatives.

[jammerjoe]

Sorry to hijack but my question is related. I lost a court battle and am going to jail for a few years. Do I still have to take a means test to file Chapter 7?

[tobee43]

usually when one is in jail, most don't have income and expenses other than what the state is paying to keep you in jail...which you can't count, of course.

i would speak to the atty who's handling your bk. with no job and facing incarceration what exactly could one put on a means test other than expenses, unless you have some on going income.