Question Means Test

[DustinLH00]

I posted this in my other thread, but thought I may get an answer if I started a new one:

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I completed the BK means test at legalconsumer.com and the results seem positive:

Monthly Income: $4,100

Automatic Deductions: $2,547
Other Deductions (Health & Dental Ins): $104
Deduction for Secured Debt: $1,613
Total Deductions: $4,264

Monthly Disposable Income: -$164 (or -$9,821 over 5 years)

So this seems like I am eligible to file a Chapter 7 at this point. Do these numbers look about right to you folks? I know they vary by person, but I just want to make sure nothing looks odd or wrong...

[SuzieBK]

So wait, are you saying that after taxes, insurance, mortgage, car note, whatever other secured debt you have, you have a deficiency, even with cutting out credit card payments? From what I've read on the board, I don't think they would let you reaffirm your mortgage(s) or car note if you're showing you still wouldn't be able to pay them every month--and you haven't even accounted for food, gas, clothing, utilities, etc. Am I missing something in your accounting?

[DustinLH00]

You are correct in your statement, per the Means Test that I took, it says I will still have a deficiency after eliminating my credit card debt. In all reality, after I pay my 1st and 2nd mortgage, my car payment and all of my utilities and after taxes and insurance and all that, I will have $500 a month left to use for food, gas, entertainment, etc. I feel that this is more than sufficient for me to live on.

Will they really deny my reaffirmation based on the means test?

So wait, are you saying that after taxes, insurance, mortgage, car note, whatever other secured debt you have, you have a deficiency, even with cutting out credit card payments? From what I've read on the board, I don't think they would let you reaffirm your mortgage(s) or car note if you're showing you still wouldn't be able to pay them every month--and you haven't even accounted for food, gas, clothing, utilities, etc. Am I missing something in your accounting?

[SuzieBK]

I'm curious, why is the means test different than your income schedule? I think you had said you have a second job, is that it? I don't think they would deny it based on the means test, but I assumed you were still in the same boat going forward.

[DustinLH00]

The first lawyer I met with calculated my income from both jobs at $4,090 a month. The median income for my area is $3,946.00. She told me I was over the income and had no choice to file a Chapter 13.

People on here kept telling me to do the means test, so I did. It is automatically giving me $2,547 in deductions. I put in my health/dental premiums at $104 and my first mortgage payment is $909 and car payment is $501. Those both have over 60 months left, so I used the actual payment amount. My 2nd mortgage payment is really $335, but since it only has 18 months left, I took the balance of $6,000 and divided it by 60 and put the payment as $100. That is how I understood the instructions to read. Thus, my secured debt payments are $1,600.

Does that help? Sorry, I'm trying to explain the best I can.

I'm curious, why is the means test different than your income schedule? I think you had said you have a second job, is that it? I don't think they would deny it based on the means test, but I assumed you were still in the same boat going forward.

[DustinLH00]

bump

[SuzieBK]

Okay, now I get what you mean by "automatic deductions"--I thought that was the amount of taxes taken out of your paychecks. That being the case, IMHO you're looking good for a Ch7.

[DustinLH00]

Thank you for your help.