Above Median Income Question

[Freedom2us13]

Hi Des, Thank you for responding. A non-consumer chapter 7 is our back-up plan in the event that Chase does not agree to short-sales or to deed-in lieu for the properties. We have already been turned down for short sale for one and have offers that they are considering on the other two. We have now requested deed-in-lieu for the one that they turned down for short-sale. If they do not agree to waive the deficiency in all cases, then we will file for BK as the deficiencies will be about $150K for all. We would like to receive 1099-Cs and just pay the taxes due in a payment plan. We would be able to write off the losses as well in order to reduce the tax bill. We have very few assets that a BK trustee could take as the 401K is exempt. I filled out sample schedules I & J and I thought the numbers were reasonable, but the attorney we consulted with kept using the numbers that would be used on the means test. I was under the impression that not only are we exempt from the means test, but that the schedules I & J use actual numbers for expenses. We came out with a monthly deficit of 400 on the schedules I & J.

[despritfreya]

If you are a non consumer case means testing is not relevant in any fashion. Schedule I and J should be your actual numbers, within reason. Remember, you can't be spending $500 per month on recreation when you are bankrupt. It sounds like you need to shop around for more opinions.

Des.