Can future medical and dental bills be factored into the DMI equation?

[lvmcse]

My wife needs dentures and hearing aids. We haven't purchase them because we don't have the money. When you complete your expenses, can you include them if you have the est. from the Doctors?

[HHM]

How borderline are you?

The answer is, sort of. You are talking about issues on the mean test from Line 19B and line 31. 19B is the IRS standard for out pocket health care. So you take that deduction first. Multiply that number by 12, then compare that number to your annual (or expected) annual medical expenses, if your true or expected annual health care exceeds the line 19B amount, then you add it in, if not, then no.

So, for Household of 2, both residents under 65, the combined, allowed out of pocket is $120 per month, or $1440 per month. (keep in mind, none of this factors in or is related to health insurance premiums). So, if I reasonably (provably) will spend more than $1440; let's say I will actually spend $2600, the difference is $1160, amortized is $96.66 per month; I can claim it on line 31. So, I put $96.66 in line 31. But, I must be able to explain and if necessary, prove the expense.

Generally, unless the medical is truly significant, we are generally dealing with numbers that don't make too much of a difference.

[lvmcse]

How borderline are you?

The answer is, sort of. You are talking about issues on the mean test from Line 19B and line 31. 19B is the IRS standard for out pocket health care. So you take that deduction first. Multiply that number by 12, then compare that number to your annual (or expected) annual medical expenses, if your true or expected annual health care exceeds the line 19B amount, then you add it in, if not, then no.

So, for Household of 2, both residents under 65, the combined, allowed out of pocket is $120 per month, or $1440 per month. (keep in mind, none of this factors in or is related to health insurance premiums). So, if I reasonably (provably) will spend more than $1440; let's say I will actually spend $2600, the difference is $1160, amortized is $96.66 per month; I can claim it on line 31. So, I put $96.66 in line 31. But, I must be able to explain and if necessary, prove the expense.

Generally, unless the medical is truly significant, we are generally dealing with numbers that don't make too much of a difference.

Thank you for your imput. My numbers are close so I am trying to every legal option that is available to me. I thought of another issue that's going on with me. I need ankle surgery. What's funny is that I put this off due to the reduction of income I would recieve for disability. The doctor has advised me that it would take 3 to 4 months to heal. Anyway to factor this into my bk?

[SMinGA2]

I don't think you can factor in that your income might decrease due to a medical procedure.

You can estimate future, necessary, ongoing expenses. Leading up to bankruptcy you may eating a lot of ramen - no one expects you to live off noodles though. So groceries should be a reasonable amount for your family size. Medical, dental is the same. Factor in approximate over-the-counter needs, prescriptions, copays, etc. Same for car maintenance. If you average 4 oil changes per vehicle per year, and occasionally other routine maintenance - it should be in your budget. Means test is only one part of it. Make a detailed list of expenses and discuss with your attorney.

This benefits you even if you don't make it thru for a ch. 7. If your expenses are realistic and accurate in a ch. 13, life will be better. Lets say you forgot to include car maintenance and its about $125/mo. You're going to have to find a way to pay for car maintenance AND make your plan payment. Make that error on several budget categories, and your ch. 13 will fail and fast.

[btbeme]

My numbers are close so I am trying to every legal option that is available to me. I thought of another issue that's going on with me. I need ankle surgery. What's funny is that I put this off due to the reduction of income I would recieve for disability. The doctor has advised me that it would take 3 to 4 months to heal. Anyway to factor this into my bk?

Two thoughts. First, when a petitioner has to really dig deep to shade themselves into a Ch 7, I can guarantee you that a Trustee will start pulling at threads to see what unravels. In other words, just because YOU were able to squeeze under the Ch 7 limbo bar, don't expect the Trustee to take your word for it. And this will not be your Trustee's first rodeo, either.

Second - any legitimate decrease in income in the last 6 months before filing will always be factored in...but, again, the Trustee can "unfactor" income decreases of this sort if it apparent that you will return to your job at the pay level that will afford you some Ch 13 payments.

[AngelinaCat]

If you are filing a Ch7, you cannot add new debt after you file. The dentures, etc., will be 'new debt' and not allowable.

However, if you had a medical situation BEFORE you file, and are awaiting the final bill from the medical providers, you may be okay. Example: I fell and broke my right arm and left knee in August 2007, and we filed Dec. 2007. 'Hub also had a skil-saw v. abdomen accident in November 2007. So we had several 'pending' medical bills hanging out there that we could not assign a total to in our paperwork. The attorney had us assign a value of $1.00 to each appropriate spot as a 'placeholder' until such time that we could put in the true amount.

We were able to discharge the additional debt, though we had to fight a bit with the medical provider for my arm and knee.