Means test expert help needed please!!!

[justbroke]

So for example say I made... total=21,500 which is under the 27k texas allows..so I would be a chapter 7 automatically?

If $43,000 is below median income, then, maybe. Depends on your expenses, but I think you'll be okay. (I hope there are at least two in your family!!!)

For Texas, for cases filed after February 1, 2008, the median income for a single wage earner is $36,285; for a family of two, it is $51,355; for three, $53,803; and for four, $61,511. Add $6,900 for each individual in excess of 4.

And file in mid January, would I use Januarys income also or is the month prior to filing considered the 6th month?

No, you don't use January's income. You use the preceding 6 full months.

[okiemom2008]

If $43,000 is below median income, then, maybe. Depends on your expenses, but I think you'll be okay. (I hope there are at least two in your family!!!)



No, you don't use January's income. You use the preceding 6 full months.

Ok, thanks. This is getting really confusing. So they do care about the last 12 months..not just the last 6 months. If we made say 28,000 last 6 months for a family of three we should be ok? And do our bills even matter since we would be under the income limit. The reason I ask is because we quit paying all of them starting November but paying them was getting us further and further behind.

Thanks for your help

[justbroke]

Ok, thanks. This is getting really confusing. So they do care about the last 12 months..not just the last 6 months. If we made say 28,000 last 6 months for a family of three we should be ok? And do our bills even matter since we would be under the income limit. The reason I ask is because we quit paying all of them starting November but paying them was getting us further and further behind.

Thanks for your help

Your income is averaged over 6 months. However, on the means test, for both Chapter 7 (Form B22A) and Chapter 13 (Form B22C), that average monthly income is multiplied by 12 to find your annual earnings.

Then this is compared to your State's median income for a family of your size.

Don't worry about the stopping paying the bills. Unsecured credit payments never count in the means test anyhow.

[okiemom2008]

Your income is averaged over 6 months. However, on the means test, for both Chapter 7 (Form B22A) and Chapter 13 (Form B22C), that average monthly income is multiplied by 12 to find your annual earnings.

Then this is compared to your State's median income for a family of your size.

Don't worry about the stopping paying the bills. Unsecured credit payments never count in the means test anyhow.

Ok, so your alot better off if you are under the average income....that way you do not have to have ever single thing nit-picked. It is just so difficult with the income problem because my paychecks are so different every month.

[okiemom2008]

Don't worry about the stopping paying the bills. Unsecured credit payments never count in the means test anyhow.

What about things like cars and mortgages. If you are giving them up and quit paying on them 3 months before filing although you have been paying on them for 4 years does any of that count?

thanks!

[justbroke]

What about things like cars and mortgages. If you are giving them up and quit paying on them 3 months before filing although you have been paying on them for 4 years does any of that count?

thanks!

Now this is where planning is essential and a lawyer helps. You need those fixed payments to make... err... to show that your expenses exceed your income and hence you should have a Chapter 7.

[okiemom2008]

Now this is where planning is essential and a lawyer helps. You need those fixed payments to make... err... to show that your expenses exceed your income and hence you should have a Chapter 7.

I had a free consult with one and he said since we are below the income for the means...very close though...to quit paying mortgage, truck everything..so we do now have money leftover since we have no bills.

[Tbornetun]

Then you are fine, if you are below the median you don't have to worry about the truck and mortgage payments lowering your income.

[okiemom2008]

Then you are fine, if you are below the median you don't have to worry about the truck and mortgage payments lowering your income.

great. thanks!we are paying rent though so that would also count just incase we need it if we go over the means income

[justbroke]

great. thanks!we are paying rent though so that would also count just incase we need it if we go over the means income

Yup, you should be all set.