means test disposable income questions

[wilbur4321]

Folks,

If my income is over the applicable median, I need to calculate monthly disposable income -- this much seems pretty clear.

In the calculation of monthly disposable income, however, I've been reading http://www.usdoj.gov/ust/eo/bapcpa/d...T_Policies.pdf and http://www.uscourts.gov/rules/BK_For...8_Combined.pdf.

Here, it appears that I can back out the entire amount of child support that is paid to my spouse, plus deduct for charitable contributions up to 15%, plus deduct retirement contributions. This would easily leave me with no DMI, without even coming close to the 15% contribution or maximum retirement contribution (in fact, backing out the child support alone will do it).

Am I reading this right? Am I missing something important or some gotchas?

thx!
--randy

[lrprn]

Without a lawyer who is very familiar with the practices and customs of your local trustees actually running the Means Test and Schedules using the "best numbers" that will be allowed in your area, it's hard to know if you will show disposable income or not. A good lawyer can make a huge difference whether you can file Ch 7 or have to file 13 when you are close to the median income in your state.

Have you met with 3-4 bankruptcy lawyers in your area yet for free or low cost initial consultations? Most won't actually run the Means Test until you pay their retainer, but you can get a good idea about how child support and charitable deductions will be treated in your situation if you go in with detailed financial information to share.

Good luck - do come back and let us know what you find out, ok?