Confusion on various forms

[InSeriousDebt77]

Hello everyone

Was hoping someone can assist me with understanding what all the various form s are for.

I am above-median, and our lawyer believes we can pass the means test for a Ch 7. However, lets say hypothetically for whatever reason the UST finds an issue with our means test and converts us into a Ch 13. On our schedules I & J, we show about $28 in disposable income. All of our expenses on the schedules are below IRS standards for a family of our size. If I were to plug in the numbers on the Form 22C, we would show about $475 in disposable income.

Couple of questions:

Is it possible to fail the means test, but still show not enough income on your schedules I & J to fund a Ch 13?

If you file a Ch 7 and our forced to convert by the UST, do you then have to file a 22C to determine your payment amount (we are not behind on any of our secured payments, no back taxes, no priority debt of any kind), or do they use your means test or schedules to come up with your final payment?

I have my doubts on whether or not we can pass the means despite what my lawyer has said due to a cash gift. I know we could wait to file to make it a non-issue, but our lawyer believes we can get around it so I am not sure.

[southernbelle]

No expert here, but I've seen posters here with that same problem. Schedules I and J and the Means Test are off significantly. It was my understanding that the Means test is how you determine what chapter you can file and schedules I and J determine how much disposable income is left to fund a chapter 13 per month, but there are always exceptions to that rule.

In a case like yours, your atty's advice is going to be extremely helpful especially if he handles bk cases on a routine basis and you need to deal with a cash gift. If you can wait to make sure the gift is a non-issue, I believe in being safe than sorry.

[InSeriousDebt77]

No expert here, but I've seen posters here with that same problem. Schedules I and J and the Means Test are off significantly. It was my understanding that the Means test is how you determine what chapter you can file and schedules I and J determine how much disposable income is left to fund a chapter 13 per month, but there are always exceptions to that rule.

In a case like yours, your atty's advice is going to be extremely helpful especially if he handles bk cases on a routine basis and you need to deal with a cash gift. If you can wait to make sure the gift is a non-issue, I believe in being safe than sorry.

Most of the posts I have seen are the opposite of my situation...I would fail the means but barely break even on Schedules. Does that mean they go to the 22C to determine my disposable income at that point? I've seen some recent posts about how taxes are treated..on your Schedule I, where it says Payroll taxes, do you enter in what is withheld or taxes incurred?

I wouldn't mind waiting if necessary, but I am not sure we can (we would be 6-7 months late on CCs, so I am not sure if I would be looking at lawsuits at that point)

[Phillymanhere]

Serious,
Have you started the process of going to lawyers yet? ... Interpretation of the law varies from state to state, district to district, so people here always recommend visiting 3 or 4 lawyers. The initial consultations are free and you can get a sense of your case as viewed by different attorneys.