Gross income? Why not net income?

[mindyandy420]

I dont understand why they go by gross income and not net.
If I go by net income (actually take home money) we dont make it.

Thanks

[BROKENN]

If you are close, you can use your expenses and taxes are one of them.

[mindyandy420]

i'm not sure

Are you saying if I am close to what? Could you explain?

Thank you

[debtmonster]

I know. I am wondering the same thing. Gross money means absolutely nothing. None of that money is yours. It's all taken away from you just as if the Mafia were there taking it right off the top.

I can't stand that they look at the gross.

So what if I spend $90,00 to make a profit $10,000? So they look at a gross of $100,000?!?!?! That makes no sense.

[BROKENN]

Are you saying if I am close to what? Could you explain?

Thank you

If you are close on the means test and still use more than you make without paying CC, you may still pass. Some have. Do you have an atty? I would recommend one.

Plus, study the way it works

http://legalconsumer.com/bankruptcy/means-test/index.php

[debtmonster]

I've been paying my attorney a few hundred per month. They want $3400 with the means test. I would save money without the means test, but then we have to go 6 months without my wife working. My wife's low paying job messes the whole thing up. The sooner she quits, the sooner we can pass with flying colors.

[mindyandy420]

Taxes

Do they deduct the taxes off your monthly gross income as part of livable expenses or as part of your monthly expenses? We pay (guestament) of $1000 a month out of our paychecks toward taxes....do they consider that as monthly expenses?

[BROKENN]

Yes!

[mindyandy420]

so

I can use the taxes they take out of my paycheck ex: fica, federal...etc as a part of my month expenses? I cannot find anywhere where it says that. Why dont they just use your net income then?

[StartingOver08]

They don't use the net because they want to see the componets that generate the net income. Some people have large 401k deductions. Some people have extra taxes taken out as a forced savings plan to allow a larger refund. The US Trustee wants to know exactly what you spend your money on and that includes automatic deductions.

Some people have their checks garnished already by the time they file - that is money that is avail for the trustee....etc, etc.

[mindyandy420]

means test

Ok can i use what the state allowable rent amount or do I have to use what I actually pay?

[BROKENN]

What you pay. The allowable is a guidleline. Even on some it is too low (like gas). I put my real numbers in to see how the whole means works. And took it to the end though I wouldn't be a C13 just to study and understand how they got there. I like the link I posted because I could re-do re-do my heart out until I understood! The trustee didn't balk niether did the atty, it was a real budget most have especially in CA.

[Cali]

Many of my allowables were lower than my actual. We put actual.
We were also over the median by a lot, and still was able to file C7/discharged/closed.

[mindyandy420]

lower

My rent is lower than what is recommened. Like for where I live for a family of 4 is $1655. Mine is $1125. Could I use the recommended or not?

[debtmonster]

$1125 is pushing it. I would never pay $1655 to rent a place, even if I was making a lot of money. That is just insane to give that kind of money away to make some landlord rich in equity.