Under the Median Income but High Disposable

[Bell30656]

Due to my family size of 7, I meet the median income. I am about 7,000 under the median income. However, since I am giving back the house, the cars and all the credit cards... I will have disposable income on my Schedule J.

I guess my question is; How much disposable income will get me into trouble? Or; Does Schedule J matter if I am under the median income?

[keepmine]

You don't want to show much over $100/month.

[lrprn]

Bk districts vary between whether the trustee gives more weight to the Means Test or to Schedule I minus J when looking at potential disposable income. This is an active area of case law right now.

Another area of active case law currently is whether you can include the costs of assets that you intend to surrender when you file. Some bk districts allow it, some do not.

Your lawyer can guide you about which way the wind is blowing on both issues in your local court.

[PaKettle]

Due to my family size of 7, I meet the median income. I am about 7,000 under the median income. However, since I am giving back the house, the cars and all the credit cards... I will have disposable income on my Schedule J.

I guess my question is; How much disposable income will get me into trouble? Or; Does Schedule J matter if I am under the median income?

Look at your expenses. Start by using this page:

http://www.goainc.com/fraley/calculators/expense_calculator.html

Look at ALL expenses, maybe there are some you are forgetting!

Also you can usually get away with filling in the listed maximum expenses listed on the DOJ tables for entertainment, clothing, etc.. Don't just go by your ACTUAL expenses if you can get away with inflating them. Ask your attorney about this. My attorney just "made our expenses up" more or less, even though I'm sure we'd have qualified anyway. But the point is, maybe you are not remembering ALL your actual expenses and maybe you can inflate them somewhat too.

[butterflywings]

The trustee can look at the "totality of circumstances" if he wants and so even if you are under the median, he can still push you into a 13 if you have more than $160 a month disposable.

[Bell30656]

What about rent? Right now I am in a house that I will be surrendering. On the schedule J do the trustee want my current mortgages or an estimation of the rent I'll have to pay?

[keepmine]

What about rent? Right now I am in a house that I will be surrendering. On the schedule J do the trustee want my current mortgages or an estimation of the rent I'll have to pay?

You need to see a lawyer. SOme districts will allow you to use the amount of a mortgage even if you are surrendering the property and others won't.

[Bell30656]

Visited my lawyer today and found that here they want you to estimate your expenses going forward not use your mortgage payment if you are giving up the house.

My disposable income was -267, he said that I was in good shape there for a chapter 7.

[JRScott]

Good to hear