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Household question and means test

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    Household question and means test

    I am about $5K above median, or at least I was, but my 19 year old son moved out recently and I haven't filed yet. I will now be about $12K above median if I lose him as a dependent. I'm wondering how much this changes my situation. My personal expenses haven't changed much since he moved out, so I'm still "passing" the means test with flying colors. In other words, not a good thing, because I am spending every penny I make and more and still trying to balance the budget. I am paying for local college for my 19 year old and other expenses (like insurance), but he does not actually live with me.

    Questions:
    1) If I am still "flunking" the means test, does my income relative to median really mean anything anyway? I take it to mean that I have to prove that the presumption of abuse does not exist, rather than just assume it.

    2) Is my 19 year old still part of the household? I'm going with yes and assuming if he had "gone away" to college, filers would be counting that as a dependent.

    Just wondering if anyone has any ideas or opinions...I am, as I have mentioned before, filing a chapter 7 per my attorney's advice.
    Thanks,
    Lefty
    Filed Ch 7 - January 29th, 2008
    341 - February 29th, 2008
    Discharge - June 20th, 2008
    Closed - October, 2008

    #2
    Did you do the means test yourself? I did mine by myself initially and couldn't qualify. I let the lawyer...errr paralegal do it and I qualified for a 7 even without including the 2nd house I'm surrendering. Only problem is my recent purchases/cash advace, etc..
    Filed: 6-7-2010 341: 7-15-2010 DISCHARGED: 9/17/2010

    Comment


      #3
      When the New Law took effect, the BK Court had a dim view of including students who went away to college in the Household number.

      There were several initial Decisions not allowing college students who lived away, at school, to factor into passing or failing the Means Test.

      There have been other Decisions since where Filers were allowed to count their children who are away at school.

      So this issue is really gonna fall to your Local Court. Best to ask attnys in your area how this is gonna play out.
      Filed Ch 7 - 09/06
      Discharged - 12/2006
      Officially Declared No Asset - 03/2007
      Closed - 04/2007

      I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

      Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

      Comment


        #4
        Our attorney calculated it and I calculated it and we both think I can file a 7. The only issue I see is whether I can count childcare costs when my spouse does not work? My spouse attends college part-time and we pay childcare for her to study and get other things done...we'll see I guess.
        Filed Ch 7 - January 29th, 2008
        341 - February 29th, 2008
        Discharge - June 20th, 2008
        Closed - October, 2008

        Comment

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