What State's exemptions do I use? Please help if ya can!

[daisey]

Hello we live in Tennessee and my husband works in Missouri. My first question is how do I figure my median income? I cant find anything to help with that. My second question his yearly income is about 10000 over what the median is for tennessee but we pay state taxes out of his check which most people in tennessee do not pay. So when they figure our median income will the deduct the amount we pay for Missouri State taxes?

I hope I stated that well enough to be understood.

[lrprn]

Welcome to BK Forum, Daisey - glad you found us!

Hello we live in Tennessee and my husband works in Missouri. My first question is how do I figure my median income? I cant find anything to help with that. My second question his yearly income is about 10000 over what the median is for tennessee but we pay state taxes out of his check which most people in tennessee do not pay. So when they figure our median income will the deduct the amount we pay for Missouri State taxes?

You file bankruptcy in the state where you live, not where you work. If you live in Tennessee, and have lived there for more than two years, then that's where you will file. As far as out-of-state taxes, the median income is calculated on gross income and number of household members, so out-of-state taxes won't matter. Here's a link to general information about filing bankruptcy in Tennessee - http://research.lawyers.com/Tennesse...Tennessee.html . Hope this helps you understand things a little better.

Some questions for you - are you and your husband filing together or will you file alone? Are you thinking about filing Ch 7 or Ch 13? Do you have children or other dependents living with you? Do you own a home, and if you do, how much equity do you have in it? How about cars? Any other assets? If we know a little more about your situation, that will help us help you better.

[daisey]

What State's exemptions do I use? Please help if ya can!

We are filing for a chapter 13 bankruptcy - my issue we lived in Indiana untill last year, and have been in Tennessee for 13 months, husband actually works in Missouri.......when we do the means calculator we pay at least 200 less to the repayment plan if we file with Indiana exemptions and Missouri. We are below the median income for Indiana and almost 10 thousand above the median income for Tennessee..........do we have a choice?

[daisey]

Thanks IRPN - Well we have 2 house one in Indiana - We have tried to keep it rented and its too much of a headach we just want it gone at this point. We purchased one here in Tennessee and its on a 30 year fixed rate of 6.23 so we are good as far as not having to purchase a place for a long time. We have no equity in it so we are good to go there.......the only thing we have of true value is a lawn mower a big screen tv and my truck a 1999 suzuki grand vitar worth maybe 2500. My husband has a nissan sentra but we are paying on it and keeping it. We are doing a chapter 13 with roughly 150 thousand in debt 124 of that is the house we are going to surrender in Indiana.........I am curious if we can use Indiana exemptions as if we can we are actually under the median income by about 1000 where as in Tennessee we are over by 10000. Can we file and use the Indiana exemptions and income guidelines on the means test...........if so our payments seem to drop by 200 dollars a month.

Thanks for your help....this whole mess has me a sick nervous wreck!

[lrprn]

We are filing for a chapter 13 bankruptcy - my issue we lived in Indiana untill last year, and have been in Tennessee for 13 months, husband actually works in Missouri.......when we do the means calculator we pay at least 200 less to the repayment plan if we file with Indiana exemptions and Missouri. We are below the median income for Indiana and almost 10 thousand above the median income for Tennessee..........do we have a choice?

Since you haven't lived in Tennessee for two straight years at this point, you can file in Tennessee but must use Indiana exemptions - see http://www.bankruptcyaction.com/inexemptions.htm .

Your husband working in another state has nothing to do with your filing. You file in the state you live in, not the state you work in. You can't use MO exemptions.

It's time to make 3-4 free consultation appointments with experienced, bankruptcy-specialty lawyers in your area. You will learn a great deal about what's possible in your particular situation as you interview each one, and you are more likely to find one that you think is most knowledgeable and you can work with to file.

[lrprn]

Daisey, I answered this same question of yours in another thread you posted where you asked the identical question at http://www.bankruptcyforum.com/showthread.php?t=12397

In the future, please don't post the same question in different forum areas. You will get more and better quality responses by posting your question one time in the most appropriate forum area. Our members here tend to look at all the areas when they log in, not just one. Thanks!

[daisey]

I think I worded my question wrong, for that I appologize, what I mean to ask is if we have to use Indiana exemptions do we also go by the Indiana income guide lines for the means test? Sorry to cause confusion, I do appreciate you help!

[SinkingFast]

You file where you live. In your case, that's Tennessee. You'll use TN Median Income and Schedules Allowables for living expenses. BUT, you use IN Exemptions to protect personal property, your house with the Homestead, and your vehicles.

If you're over the Median for TN you may have to file Ch 13. As Lrprn suggested, schedule 3-4 Consults with attnys that specialize in BK. They can tell you for sure what your status is.

[SinkingFast]

Daisy,............. I've merged your threads together to keep all the responses in one place.

Just wanted to let you know.

[daisey]

THank you sinkingfast. I am just concerned because when we do the means test it says we have like 800 worth of disposable income and we would have to pay that to the trustee......that is like 33% of our bring home. It seems to me that since we have to pay state taxes and its a mandatory payroll deduction for his job they would take that in to consideration.

[lrprn]

I am just concerned because when we do the means test it says we have like 800 worth of disposable income and we would have to pay that to the trustee......that is like 33% of our bring home.

Daisey, you doing the means test vs. an experienced and knowledgeable bankruptcy lawyer doing your means test can give very different results.

Make several appointments for free consultations with experienced bk lawyers in your area. That way you can get an idea of what your reality may be filing in TN with IN exemptions, plus hopefully you will find an attorney you like and can work with for your filing. You will learn a lot each time you meet with a bk lawyer, so don't go with the first one. It's important to feel confident that your lawyer will be working with your best interests in mind.

It seems to me that since we have to pay state taxes and its a mandatory payroll deduction for his job they would take that in to consideration.

We are in the same situation - my husband and I both work in a different state than we live in, and we also are required to pay state taxes to both states. In fact, we also have to pay a mandatory city tax to the city where we work as well. This is all accommodated for on Schedule I of the Means Test.

Keep us posted on what you find out during your lawyer visits - good luck! Remember we're always here if you need us.

[daisey]

The state you lived in for the 730 days (2 years) before filing; or
If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or

I read this as if we have lived in Tennessee for the last 180 days we can use their exemptions....is that what the 180 thing means?

[lrprn]

The state you lived in for the 730 days (2 years) before filing; or
If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or

I read this as if we have lived in Tennessee for the last 180 days we can use their exemptions....is that what the 180 thing means?

No. Let's see if I can explain this more clearly....as of Oct 05, if you lived in your previous state less than 730 days before you moved to your current state, then the court will look back an additional 180 days. The state where you lived during the majority of that extra 180-day period beyond the original 730 days will determine which state's exemptions you can use.

Here's an example - a debtor moves from State 1 to State 2 less than 730 days ago. Debtor needs to use State 1's exemptions to file bankruptcy UNLESS they also lived in State 1 for less than 730 days. If that's the case, then they can use the exemptions of whatever state they lived in for most of the 180 days *before* the 730 day period when they lived in States 1 and 2. (This is an excellent example of why we so often need lawyers to file bankruptcy! lol! )

[daisey]

No. Let's see if I can explain this more clearly....as of Oct 05, if you lived in your previous state less than 730 days before you moved to your current state, then the court will look back an additional 180 days. The state where you lived during the majority of that extra 180-day period beyond the original 730 days will determine which state's exemptions you can use.

Here's an example - a debtor moves from State 1 to State 2 less than 730 days ago. Debtor needs to use State 1's exemptions to file bankruptcy UNLESS they also lived in State 1 for less than 730 days. If that's the case, then they can use the exemptions of whatever state they lived in for most of the 180 days *before* the 730 day period when they lived in States 1 and 2. (This is an excellent example of why we so often need lawyers to file bankruptcy! lol! )

You can say that last line again! Thanks I am trying to figure it all out and I am a mess! Have another meeting with the attorney on Tuesday, I hope I get it all squared away then. She is trying to get us filed before the end of the month due to my varied income.

[SinkingFast]

The way attnys here explained it to us,.............. We moved. We had to live here 180 days before we could file BK. Since we hadn't lived here 2 years yet, we had to use the old State's Exemptions.

Evidently, you cannot just up and move and file BK. That's an issue with the Old Law the New Law was trying to address. People would flee to Debtor friendly States and file BK in their New home State. The Court now requires you be a resident of your New State for at least 6 months prior to filing. But until you've lived in the New State for 2 years, you have to use your old State's Exemptions.