Schedule J-Chapter 7

[cmcfall]

Do I run a risk of having my case dismissed or converted to chapter 13 if I have any income left over after expenses? I am under median, do I need to be at a negative?

[tigergem]

Individuals whose incomes are below the median automatically qualify for Chapter 7.

Filers whose incomes are above the median must then calculate their Disposable Monthly Income (DMI) to determine whether they are able to make payments on their debts sufficient to qualify them for Chapter 13.

If the DMI is less than $100 per month, they are permitted to file under Chapter 7. If the DMI is above $100, they must file under Chapter 13.

[cmcfall]

Individuals whose incomes are below the median automatically qualify for Chapter 7.

Filers whose incomes are above the median must then calculate their Disposable Monthly Income (DMI) to determine whether they are able to make payments on their debts sufficient to qualify them for Chapter 13.

If the DMI is less than $100 per month, they are permitted to file under Chapter 7. If the DMI is above $100, they must file under Chapter 13.

Great thanks again!

[GettingGoing]

Individuals whose incomes are below the median automatically qualify for Chapter 7.

Filers whose incomes are above the median must then calculate their Disposable Monthly Income (DMI) to determine whether they are able to make payments on their debts sufficient to qualify them for Chapter 13.

If the DMI is less than $100 per month, they are permitted to file under Chapter 7. If the DMI is above $100, they must file under Chapter 13.

A ch7 debtor that is under the median income but has too much dmi on sch J can have their case dismissed basically forcing them to convert to a 13.

[cmcfall]

A ch7 debtor that is under the median income but has too much dmi on sch J can have their case dismissed basically forcing them to convert to a 13.

How much is too much?

[GettingGoing]

How much is too much?

I dont know that there is an "exact" number. I have read many times that $160 is limit of dmi but I have no clue where people get that number from. You can post your sch J and people will give you an idea of how it looks.

[cmcfall]

I dont know that there is an "exact" number. I have read many times that $160 is limit of dmi but I have no clue where people get that number from. You can post your sch J and people will give you an idea of how it looks.

Being I filed my paperwork already will amending schedule J get me in trouble. I have more than $160.00 left but I am also on an adjustable rate mortgage and need to have some money left to prepare for that each year (if that matters).

[GettingGoing]

Being I filed my paperwork already will amending schedule J get me in trouble. I have more than $160.00 left but I am also on an adjustable rate mortgage and need to have some money left to prepare for that each year (if that matters).

You should be fine amending your sch J as long as you don't make an expense up just to bring down your dmi. Like I said, you should post your sch J here so that everyone can help you with forgotten expenses that many people forget about.

[tigergem]

A ch7 debtor that is under the median income but has too much dmi on sch J can have their case dismissed basically forcing them to convert to a 13.

Maybe. Subjectively. But there is no presumption of abuse if the filer is under median and filing Chapter 7. If it was me, I would rebut any challenge to it.

No. I take that back. I would have made the appropriate adjustments to the totality of circumstances before filing, and it wouldn't be an issue.

[cmcfall]

You should be fine amending your sch J as long as you don't make an expense up just to bring down your dmi. Like I said, you should post your sch J here so that everyone can help you with forgotten expenses that many people forget about.

Okay below is my schedule J, any feedback is much appreciated.

Mortgage-$773.39 (taxes/insurance)
Utilities-$180.77
Water/Sewer-$165.00 (HOA)
Telephone-$169.59
Other-$144.00 (Cable/Internet)
Home maintenance-$50.00
Food-$390.00
Medical-$60.00
Transportation-$200.00
Homeowners Insurance-$39.00 (comprehensive)
Car Ins.-$129.00
Back taxes installment agreement-$956.41
Car pymt-$359.07
Total=$3616.23
Income-$3908.54
Left-$292.31

Thank you

[tigergem]

What does your medical include? Don't forget to factor in premiums, deductibles and co-payments.

[cmcfall]

What does your medical include? Don't forget to factor in premiums, deductibles and co-payments.

It covers my co pay to get my depo shot every 3 months but you're right I didn't factor in co pays for husband and I for check ups or for deductibles, thank you.

[GettingGoing]

Home maintenance seems a bit low to me. 600/year for upkeep on a house?
What is your family size?

[cmcfall]

Home maintenance seems a bit low to me. 600/year for upkeep on a house?
What is your family size?

2 just my husband and I and I live in a condo.

[GettingGoing]

Maybe. Subjectively. But there is no presumption of abuse if the filer is under median and filing Chapter 7. If it was me, I would rebut any challenge to it.

No. I take that back. I would have made the appropriate adjustments to the totality of circumstances before filing, and it wouldn't be an issue.

Care to explain? I am 30 days away from my hopeful discharge however if the UST decided he does not like my 450/month student loan payment on my sch J then my DMI will be about $500/month and I am sure he will motion to dismiss/convert.