Need help ASAP! Failed Means test

[Freddy03]

Well it sucks to be me today

I just left the attorney and we failed the means test by $200. He suggested to me to go out and get a new car. I highly doubt we would be approved for anything. He did suggest to go to one of these places that give you a loan against our paid off car. He said I needed another car payment to get the credit for the means test.

So I just applied with one of those places and they have to call me back.

My credit is shot.

I'm lost right now!

[newbie2]

Ack, sorry to hear that Freddie. If you do take that loan against your car, make sure the lien is perfected before you file.

[Freddy03]

Thanks I will. I doubt I will be approved for it.

I really don't want to be in a 13.

[discouraged]

Oh shoot! Rats! Darn!!!

Freddie - You've done such good to all of us here, I just know something good will come up. I just hope and wish the best for you.

[Freddy03]

Well I was denied! No surprise. Guess it looks like the hubs gotta get a new car at an extreme interest rate

[IamOld]

Hey-what about life insurance? If you're not in perfect health (in other words if you or husband EVER ate a cheesburger) - and forgive me but of course I don't know how old you are, between you and husband you could easily spend north of $60/70 on a $300K or $400K policy. Atty meant by $200/mo right? Especially if you all don't have a lot of life ins, and there are kids...

OFFICIALLY an ins agent would tell you that you should have eight to ten times annual income for TERM life ins (which in the real world most people don't need) but this isn't the real world....

What do you think? and others? You can get some quick quotes online and you can actually have a policy written and priced and you could even pay first month if you go to an Allstate or State Farm or whoever tomorrow...is that any more "funky" then getting a new car?

Or could you guys use a new car?

[IamOld]

Oh he's talking about the title loan places...that will put yuo over real easy....but it's heck of a payment... BUT if that's what it takes...

[jetsfan2010]

if you wanna get a car loan, go to one of those "buy here pay here" dealers in your city. do a google search for buy here pay here car lots in "fill your city in" . They will do in house financing, but be prepared to pay a large interest rate and might have to put something down. Also, do you guys have 401k that you could increase to lower your income, or deductions to change?

[jeep75]

changing 401k or deductions, wouldn't that cause Freddy to have to wait awhile to file either 3 or 6 months?

[IamOld]

Guys changing 401k deds shouldn't matter but and however - from what I understand from my atty it does NOT decrease your OWN income and/or when you file together.

[jetsfan2010]

@IamOld - it decreases your disposable income.

@jeep75 - it really depends how far off. with only 200 being the amt off a couple paystubs and the new 6 months look back could be fixed

[IamOld]

TRUE jetsfan for a Ch 13...but I know when prepping for a 7, atty said it made no difference...as to qualifying on the means test. And yes, I think you're so right $200 isn't a huge distance to traverse...

[jeep75]

Guys changing 401k deds shouldn't matter but and however - from what I understand from my atty it does NOT decrease your OWN income and/or when you file together.

Agreed, nowhere on the means test does it ask or allow for 401k. It won't help you pass the means test.

Our attorney did put it on Schedule I under other payroll deductions. Which would apply to a chapter 13.

[jetsfan2010]

thanks for the clarity guys. looking at this nolo link, you still may be able to qualify if you are over the median with a few slight adjustments.

[Freddy03]

Thanks for all the advice so far -

I'm seriously freaking out.

We called a couple of carmax type places and of course we could get a "newer" car with trading in our paid off car and putting 3k down with 24% interest with a car payment of $300 a month.

There is NO way I will do that. First I don't have any money to put down and I really don't want a $300 car payment for 60 months for that I'd rather be in a very low Ch 13 payment.

Could someone please tell me who a 13 works?

Will getting life insurance help on the means test?? I could up my 401K on Monday and the lastest I would want to file would be Aug 1st b/c of the wage garnishments.

Sorry if this is rambling. I had a very bad day