How much power does a trustee have over dismissing your case and how likely is it?

[free2breathe]

djd, a great resource for understanding Chapter 7 and where everything goes is the nolo book from nolo.com. You might see if your library has a copy, or you can download it on the internet. It's a fantastic resource tool for figuring this sort of thing out. Also, just getting a couple free consults from attorneys can be a real help as well.

I know it is terribly frustrating, because you feel like you are between a rock and a hard place. Just keep putting the questions out there, and people will try to help as much as possible.

[free2breathe]

Have you gone to the US Trustee site to see the allowable expenses that are posted there? http://www.justice.gov/ust/eo/bapcpa...anstesting.htm and scroll down to find the links to national standards in the different categories.

[djd]

Thank you for that link. .

Here's a rundown of my debts and expenses.

Gross income 1,600 per month. I only make $10 an hour
Rent 450
gas + electric I'm guessing between 100 and 150 a month for both combined.

food: 275 (rough estimate)
car: roughly 50 per month
household items: maybe 50
health: (if I get it) 180 per month
entertainment: 40
clothing: 30
telecommunications: 65
car insurance: 100

My debts: student loans $30,000 (not in default)
credit card : 10,000 (is being garnished)

So are you saying that I cannot include my loans in my total debt? or that I can't list it as an expense? what about the garnishment?

I want to get this credit card debt discharged while my loans are still in forbearance even if it means quitting my $10 and hour job and finding lower paying wage. I know it sounds crazy like cutting off one's nose to spite their face, but if this is the ONLY way, then so be it. It's sad that people are forced to do this.

Another thing: when it asks who's benefit the debt was for can I put "the united states government and the loan lender" ?

[debee]

It would help you to understand what the "standard" expenses are for a person in your area and of your family size. I believe the food & apparel budget for one person is over $500 per month. If you go to this site and enter your zipcode, you will find out the local and standard amounts for means test expenses. (see link below).

These are relevant to you even if you are under median because they give you some idea of what "normal" is. Most of us had not been living with normal budgets prior to filing. It's common to find people who have reduced their insurance coverage to the minimum, raised deductibles, dropped life insurance, become gourmet hot dog chefs, etc. Also, the trustees use the standards when they analyze filings.

If you can come in under the standard, your filing will attract less attention. It's ok to come in over the standard, but those expenses are likely to be scrutinized, and must be both "reasonable and necessary".

To find out the standards in your area: http://www.legalconsumer.com/bankruptcy/nolo/

You have been operating on a negative budget and you need to think of it like that for everything to make sense. If you weren't garnished, you'd have more money available for food, apparel, dental, insurance, car maintenance, etc. You will be allowed to claim expenses that you haven't had the money to incur prior to filing. Because the trustees have so many cases, and because you're not a "high income" filer, it should be pretty easy for you to come in under the radar.

As f2b noted, the danger range for DMI is $117-$195. If your DMI is in that range(or over it), you are a candidate for a 13. The only way out is if DMI<25% nonpriority unsecured. If your DMI is over $195.42, you will have enough to fund a 13 and it won't matter how much unsecured debt you have. You'll be stuck. Most people find they have to really consider their expenses and reexamine their spending habits and needs. For instance, you have nothing in your budget for over-the-counter cold remedies, band-aids, lotions, sunscreen, pain relief, prescriptions, etc.

Have you stopped paying all your creditors? If not, you could do that prior to filing so there is money available to buy health insurance. You don't want to have an accident of some kind post-bk and end up with a big medical bill that puts you right back where you started. A side benefit of health insurance is that it also reduces your income for the bk.

[ValleYum]

If his vehicle suits the criteria, he can take the $200 "ownership" allowance if the vehicle is either more than 6 years old or has more than 75,000 miles on the odometer. That should help.

$50/month is really low for gas. What about car tags - take the annual cost and divide it by 12.

I don't see payroll taxes listed.

I don't see the $60 national standard amount (or any amount) for healthcare items like debee mentioned above. No personal care items - haircuts, soap, shampoo, etc. are listed either ($32 national standard) and most of the food, clothing and other item expenses listed are under national standards as debee also mentioned above. Learning what those standards are for your area is eye opening.

Monthly income is off due to the number of weeks per month computation - $10 per hour x 40 hours x 52 weeks / 12months = $1733 To do some quick figures: I presumed a 15% tax burden $1733 - $260 taxes/SS/medi = $1473 net and then used only the figures the OP listed above *excluding* health insurance - and came out that they have $283 DMI.

By utilizing and refining a few more budget categories correctly - vehicle expenses, purchasing health insurance, healthcare expenses, etc. the OP will easily have super-low/no/negative DMI, in my opinion.

[djd]

The problem is with the health insurance. My employer dropped my HMO in December and I did not choose another health care provider, so now I have to wait until next January to get health insurance which costs about $30 a week. Maybe I should wait until I have health insurance deducted. Again I ask, why can't I include this as a future expense?

And I wouldn't think that payroll taxes would be a deduction. The car is over 10 years old, has 65,000 miles. Maybe I should drive around in circles and put 75,0000 miles on it!

[debee]

Maybe you could find some private health insurance until it's available through work again. There have been people who posted on this forum who ran into seriously huge medical debt after filing bk and they were stuck with those debts and could not declare bk again for whatever number of years. 8?

Payroll taxes reduce your income so they count.

The car doesn't have to be both old and high-mileage. It's one or the other. I would consult with an attorney before using the car deduction to make sure you won't have any problems.

eta: you have to watch payroll taxes because your tax refund offsets your payroll deductions. You may want to adjust your withholding to make sure you're not overpaying taxes.

[djd]

I'm filing single and my W-2 exemptions are 2 for federal and 2 for state.

[MrSmithster]

Sounds like you need NOLO asap...but im confused. Earlier you say your student loans are part of your garnishments, then when you post your expenses, you say they are not in default??? So if I understand correctly, you are filing because of $10k in credit card debt? If so, I would use BK as a very last resort. To only dismiss $10K while retaining $30K doesnt seem like a very fair deal for you, especially if your wage is going to be approx the same for some time. What are your student loan payments monthly? 1 day after I filed, Citibank(credit card) called me wanting late payment, threatening to garnish, I told them I just filed BK and gave them my case #, they quickly sent me a notice offering to accept 40% owed and they would forgive the rest(which didn't matter, cuz I didn't have the $30k). A while later when the court notified Citibank of my filing, they quickly closed my acct. And I amended my filing to add a creditor, did this after my 341. Got the forms online and copied some that I saw on Pacer. My TT's assistant was helpful answering some questions I had, even gave me her phone number if I needed any more advice. Are you single? Hint, downgrade your withholding deductions to zero and single, less take home pay to report, and most likely you will get it back next year...

[djd]

No, I am not being garnished for student loans because they are in deferment, not in default. I begin paying again in November AND I would like to have health insurance. With that in mind, my take home pay be alot less after I have health insurance.

I assume even poor people are allowed to have health insurance.

I could lower my withholding deductions, but wouldn't a trustee wonder why I increased my tax deduction then file for bankruptcy??

[Craig316]

They have almost absolute authority, but I found my trustee to be very informal and understanding.

[pippen2012]

Have you tried consolidating your loans under the income contingent repayment plan before filing? This would allow you to adjust to an normal I and J. Are you sure about the dental? The trustee may assume you are throwing in a short term dental work expense in order to skew the figures.