Could someone explain the housing and utilities adjustment?

[bigstick]

Is this an area where you can claim your actual mortgage payment instead of the pre-determined amount?

[keepmine]

Is this an area where you can claim your actual mortgage payment instead of the pre-determined amount?

Yes.

(V) In addition, the debtor's monthly expenses may include an allowance for housing and utilities, in excess of the allowance specified by the Local Standards for housing and utilities issued by the Internal Revenue Service, based on the actual expenses for home energy costs if the debtor provides documentation of such actual expenses and demonstrates that such actual expenses are reasonable and necessary.

http://doney.net/bkcode/11usc0707.htm

[flyinbroke]

Unfortunately this does not work for rent; my rent is double what the so-called IRS local standard is. I want to know where these rentals are. And whether I need to be armed to the teeth to live there.

[bigstick]

Met with attorney today to go over schedules and was told that you can not claim additional mortgage payments over the IRS standard.

[JEM]

Met with attorney today to go over schedules and was told that you can not claim additional mortgage payments over the IRS standard.

Where do you live?

[bigstick]

Baltimore, Maryland

[newbie2]

Bigstick, I've never heard that, unless you aren't keeping your home.

[DeadManCrawling]

Very odd. Must be a district specific thing.

We were allowed to claim our mortgage payment of 4200/month in Florida Middle. The IRS allowable here is about 900/month, which would have forced us into a 13.

Also, our gas and electric and maintenance amounted to nearly 3k per month.

We are not reaffirming, and indicated as such on our petition. No questions about it at the 341 and attorney says this is how things are here.

It seems the law should be applied universally, since it is federal.

I am sorry you are dealing with this, though. Hope it works out.

[bigstick]

yeah I've asked him to double check that. For me it's the difference between passing and failing the means test. So it's very important to find out for sure.

[forgotten]

yeah I've asked him to double check that. For me it's the difference between passing and failing the means test. So it's very important to find out for sure.

The means test places no limits on deductions for mortgages or car loans. All secured debts for a car or home can be deducted.

The resonableness of such expenses can not be determined by the judge. The best a judge could do is refuse a chapter 7 based upon the totailty of circumstances if you have excesseive debts for luxury items. The idea that your primary residence is a luxury item would be a ridiculous assumption.