Overtime Income & Means Test Questions

[JenR]

My husband works overtime, involuntarily and NOT on a regular basis. Over the past six months.... he had 2 months with zero OT, 1 month with 45 minutes OT, 1 month with 8 hours, 1 month with 16 hours and 1 month with 24 hours of OT (not in that order).

When and how will that be factored into our average monthly income?

I'd like to say that my husband can STOP doing any overtime so that it becomes a non-issue, but as I said, it is INVOLUNTARY... but on the plus side, it comes in handy.... helping us to pay CASH for things like school clothes and Christmas.

Also, in regards to the means test.... can anyone answer a few questions regarding:

Part 5A:
#19B, regarding out-of-pocket health care: to whom and how does this apply?

#21, housing & utilities adjustment: what applies here?

#23, vehicle ownership or lease expense: HUH? in #22 I'm indicating the I
own/operate 2 vehicles. 1 is paid off, 1 is financed. how many, if any, do I
claim in this category?

#30, child care expenses: we pay a teenager cash for babysitting from time to time, but we don't write it off on our taxes, or claim it as an expense. can we indicate an "average" cost in this box? and if so, should it not exceed any certain amount (i.e., the amount that would be reportable on our taxes)?

#31, other necessary expenses, healthcare: is this where we indicate average monthly co-pays for doctor visits and medication.... or do we use #19B????

Part 5B:
#40, charitable contributions: we give $10 per week at church, can/do we claim this here?

Part 5C:
regarding 'future payment on secured claims': do I include 1st mortgage (if
filing ch 13 and keeping the house? if filing ch 7 and NOT keeping the house);
2nd mortgage (if filing ch 13 w/lien strip? if filing ch 7?); car payment (if
filing ch 13 AND including in payment plan? would I use current payment amount, or new amount based on balance owed divided by 60 months?)

When, and to whom, would Schedule I and J apply?

Sorry if none of that makes sense! I'm just trying to figure out the numbers. I originally thought we'd be able to file ch7, but I must have been doing something wrong with the means test, because the first attorney we consulted with (have two other meetings schedule with different attorneys) says we qualify for ch 13 w/lien strip... and payment would be around $350 for 60 months.

The "stats":
Live in CA, annual income $90-95k
Home value $260k - 1st mrtg/$272k, 2nd mrtg/$37k
CC debt - $40k
Reason for filing: combination of 15% loss of income & chase increasing minimum payments

[justplaintired]

Lots of questions. First income, it's 6 months of income. You want to add 6 months, then divide by 6 and multiply by 12, this is a years income. You will use the 6 months prior to filing.

Means test. Question 1: This is what you put out of pocket on a monthly basis. For instance, take your years expenses and divide by 12 to come up with a total. Include meds.

Utilities is for your home, take a yrs avg divide by 12 months and there you do. Include water, sewage, electric gas, there should be somewhere for phone service, internet, cell phones....This also includes mortgage payments, if you plan on keeping the home, you can not claim this amount (mortgage) if you are not keeping the home.

All cars apply. Owned or leased. Value of owned car will be included in assets and each state has different allowances for this. You will have an expense of insurance, gas, upkeep(tires, oil changes, repairs) on cars. Also registration goes in just divide these figures to get a monthly expense. This can be on an average, don't underestimate.

Child care is exactly that. Include what you pay and figure it by a month basis. Doesn't matter who you pay, just that you pay. School expenses for children is allowable. Extra expenses for sports in school, band, lunches is also an expenses.

Medical expenses are everything and anything pertaining to medical. Dentist, chiropractor.... Meds. Just try to figure up what it could potential be. Sick kids, if nothing else look over the checkbook or cc statements and avg it out what you think it might run you.

Church is acceptable as a donation. We donate to a needy children's fund and it was acceptable with our trustee.

Your income and whether you are current on your mortgage will determine whether you are a 7 or 13. If you are not current on the home and wish to keep it, you will have to do a 13 or get current and then file. When doing you expenses, be realistic and find out whether your state allows the federal exemptions or the states exemptions.

Good luck

[PdxDavid]

This also includes mortgage payments, if you plan on keeping the home, you can not claim this amount (mortgage) if you are not keeping the home.

We are getting ready at some point to file Ch7 (hopefully). We do not plan to keep the house because we owe 182k and our neighbor (exact house/condo) is trying to do a shortsale, and the best offer he has gotten is 141k.

My question is:
I don't think we will qualify for the means test if we are not able to include the mortgage. In another post I thought it said something along the lines of, you have to live somewhere, so you do put something in for a housing expense. Is there something that goes in another part of the form?

What am I missing?

Thanks

[klandsb]

I have a question about child care. My 22 yr old daughter suffers from bi-polar disorder and is a single mom. SHe is on unemployment right now due to a lay off. Her condition got really bad a couple months ago and I took my grandson for a while till she could get back on her feet ...Anyway I told her I would pay for childcare 3 days a week for my grandson and give her a break.... Well, its costing me about 100 a wk which I really cant afford but am doing without some things to make it work... I know this is a crazy question but is there anyway that you think that they would take this into consideration as an expense ????????

[klandsb]

woops...I am losing my mind... Its not 100 a wk its 100 every 2 wks. I know most of you probally think I am crazy paying this amount but it gives me comfort of mind to know he is in a safe place while I am at work..
She is doing much better now but dont think she can take him 24/7 ...

[PdxDavid]

woops...I am losing my mind... Its not 100 a wk its 100 every 2 wks. I know most of you probally think I am crazy paying this amount but it gives me comfort of mind to know he is in a safe place while I am at work..
She is doing much better now but dont think she can take him 24/7 ...

Sorry, I don't have an answer as to whether you can include this as an expense or not. I definitely do not think you are crazy paying 100 every 2 wks for childcare. The safety and peace of mind you get from this while you give your daughter the time she needs is worth every penny. Plus, it sounds like a fairly decent price compared to what we have paid her in OR.

Good luck.

[OhioFiler]

I have a question about child care. My 22 yr old daughter suffers from bi-polar disorder and is a single mom. SHe is on unemployment right now due to a lay off. Her condition got really bad a couple months ago and I took my grandson for a while till she could get back on her feet ...Anyway I told her I would pay for childcare 3 days a week for my grandson and give her a break.... Well, its costing me about 100 a wk which I really cant afford but am doing without some things to make it work... I know this is a crazy question but is there anyway that you think that they would take this into consideration as an expense ????????

You shouldn't have any problem claiming $50/week childcare expense for your grandchild if you have documentation should they ask.