Leftover Income

[leelee]

When filing, with a lot of debt, do the courts look at your income/expenses WITHOUT paying those monthly creditors (being filed). If so, could they determine that there's too much left over . . . .

I don't know if I'm explaining this correctly.

The bottom line is we are UNable to make ALL of our payments, but, if all of those payments were taken away, we would have money leftover (hopefully, to save for unexpected expenses --i.e.: car repairs, etc. that we wouldn't be able to 'charge')....

I hope that makes sense

[HHM]

That is exactly what they look at. When filing for BK, you allowed certain expenses (basically, your usual living expenses) with some limits on how much. If after deducting all your "living" expenses from your income, and there is an amount left over, several things can happen.

In a nutshell, if you are below your state's median income, then you are usually good to go for a chapter 7 (there are some exceptions), but if you are above your state's median income and have leftover income after deducting all your living expenses, you will be required to pay back that money to your creditors in a chapter 13 BK.

[lrprn]

That is exactly what they look at. When filing for BK, you allowed certain expenses (basically, your usual living expenses) with some limits on how much. If after deducting all your "living" expenses from your income, and there is an amount left over, several things can happen.

HHM is right. Also in addition to your living expenses, the trustee also deducts how much your monthly payments are to secured assets you are allowed to keep every month.

Making the B22 Means Test calculations *much* simpler than they actually are, basically the calculation is: Monthly income minus secured asset payments minus allowable living expenses = monthly disposable income

If your monthly disposable income is less than $100, you can likely file Ch 7.
If your monthly disposable income is between $100-160, you could file either Ch 7 or 13 depending on your individual case situation.
If your monthly disposable income is more than $160/month, you will be forced to file Ch 13 unless some very specific extenuating circumstances exist.

[SinkingFast]

Here's a link to help you with Expenses:

http://www.ca-bankruptcy-attorneys.c...alculator.html

If you need to,.......... Quit paying Creditors you intend to discharge in BK and start living a normal "Cash and Carry" existence. That way, you'll get a better handle on how much you really do spend for your actual living expenses.