HELOC Payments

[Foofy610]

Good morning everyone.

I'm not sure what amount to enter for our monthly HELOC payment. There is an outstanding balance of just over $72,000. A couple of years back, I was paying $1,000 per month. Since the credit card companies doubled our interest rates (for no reason), our credit card debt exploded over the last two years I've been paying only the HELOC interest of ~$200 monthly.

If we can get our credit card debt discharged, I'd like to go back to paying $1,000 monthly to the HELOC. Should I enter this amount on my Schedule J?

Side note: On line 43a of the means test, the total amount is divided into 60 payments of $1,200.

[momofthree]

Line 43a is only for defaulted debt. For example, it you were $6000 behind on your HELOC, you could include 1/60 of the amount there ($100) so that they wouldn't foreclose.

You will most likely be required to list the HELOC minimum payment on your schedule J, which sounds like it's $200.

[Foofy610]

I'm getting more confused by the minute. We have not defaulted on our HELOC. If I discard the amount on line 43a, we'll fail the means test. Then what?

[Pandora]

... we'll fail the means test. Then what?

Then you'll be looking at a possible CH. 13. I'm confused - on your other thread (just replied to) you stated your HELOC was $500 monthly, but here you have it at $200, but were paying $1K previously ?? What is your actual payment?

[momofthree]

When you keep saying you pass the means test, do you mean that you're filling it out yourself? Many people fill it out incorrectly, this is something that your attorney needs to be doing for you, especially since different districts have differing opinions on things like vehicle ownership expense, etc.

[Foofy610]

The minimum payment is the interest which is roughly $200. I've been trying to pay between $200 & $500 for the last year or so. I was paying $1,000 monthly up until the end of 2009. I apologize for the confusion. I've got a million numbers running around my head.

[Foofy610]

When you keep saying you pass the means test, do you mean that you're filling it out yourself? Many people fill it out incorrectly, this is something that your attorney needs to be doing for you, especially since different districts have differing opinions on things like vehicle ownership expense, etc.

To get an understanding of our situation, I used the means test on the Legal Consumer website.

[momofthree]

To get an understanding of our situation, I used the means test on the Legal Consumer website.

Legal consumer is definitely the most user friendly since it auto-fills the IRS standards for your zip code. However, it also automatically fills in the IRS standard for vehicle ownership expense of $496 a month for up to 2 vehicles. If you do not have 2 auto loans, many districts will not allow this expense on the means test, so that has tripped up many people who are attempting to fill out the means test on their own. Also, as you can see, on the areas that you fill in yourself (specifically for you line 43a), it's easy to misunderstand what they're asking for and fill in an erroneous figure. Unfortunately, the $1200 that you listed doesn't apply and won't be listed on your official means test.