A couple questions about the Means Test

[PoorNow]

We are filling out the Statement of Current Monthly Income and Means-Test Calculation. It was all going fine until line 20B. It says to subtract line b from line a. Well, line a is a smaller number so I get a negative value. It clearly says not to enter an amount that is less than zero. So what do I enter then? We left it blank and then the next line asks about an adjustment, so I put the difference there.

Also, is it normal to have a disposable income that is a negative number? After filling in all the items and deductions, I come up with a monthly disposable income of $ -4530.17 Ive gone back and checked all my numbers and everything is right.

Thanks in advance for any help.

[momofthree]

Are you listing your mortgage as an adjustment? There is a section (42) down below where you list your secured debts. The adjustment is in the case of higher than standard rent or utilities--do not include your mortgage under the adjustment.

Are you under median? If so, you don't even have to complete the full means test. With a negative $4500, I can't help but think that you're either filling out the means test incorrectly or that you're below median income....

Edited to add: I see from one of your older posts that your vehicles are paid off. If this is still the case, then you may not be able to claim the "ownership expense" on lines 23 & 24. You'll want to find out how your district handles this expense...

[justbroke]

We are filling out the Statement of Current Monthly Income and Means-Test Calculation. It was all going fine until line 20B. It says to subtract line b from line a. Well, line a is a smaller number so I get a negative value. It clearly says not to enter an amount that is less than zero. So what do I enter then?

You put $0.00. Since you get to count your mortgage on Form B22A Line 42, it would be double counting if you put anything on Line 21 for an adjustment! That line, 21, is only if you were paying rent and you can show that the IRS calculation that separates rent from non-rent is inaccurate.

It is normal to have negative disposable income... but the number you have is significant and is probably because you double counted your mortgage by listing it as an adjustment on Line 21.

I'm assuming this is Official Form B22A for the Chapter 7 means test. (The Chapter 13 Form is B22C and is similar, but has slightly different numbering.)

[PoorNow]

Thank you for your responses.

Yes, our vehicles are owned and we dont have payments. How do I find out how my district handles this expense? Do I just call the clerck of the court?

I also took off the adjustment on line 21 and entered zero on line 20. If I end up not claiming the 2 ownership expenses for the cars, it brings my numbers back up significantly and now my disposable income is $-2913.14

[justbroke]

Yes, our vehicles are owned and we dont have payments. How do I find out how my district handles this expense? Do I just call the clerck of the court?

That may be considered a question of law and they probably won't answer it. You should poke around for a Trustee guide or Attorney guide from the Panel Trustee's office or the Office of the United States Trustee. Of course you could try to ask the Clerk a "procedural" question, but that doesn't sound procedural.

I also took off the adjustment on line 21 and entered zero on line 20. If I end up not claiming the 2 ownership expenses for the cars, it brings my numbers back up significantly and now my disposable income is $-2913.14

Sounds good to me.

[PoorNow]

Just wanted to update. I checked with our bk attorney friend that is answering all of our questions for us. We are very lucky for that. He said yes to include the deduction for ownership expense anyways. Im in AZ.

[justbroke]

Excellent.

[Dev]

Which State Do I File In

posted in wrong thread ....sorry!!!!!