How does a garnishment figure into the equation?

[Winger19]

I have a judgment against me. They have recently garnished my wages to the tune of $656 a month.

How does this garnishment figure into the means test? Does it count as some sort of mandated payment that will reduce my monthly income? It's the main reason for me to file.

Thank you

[aa06a47]

No, since the garnishment will cease under the automatic stay, it will no longer be a bill you will pay.

[SinkingFast]

No, since the garnishment will cease under the automatic stay, it will no longer be a bill you will pay.

Yep! Yep!

Any debt you are discharging in the BK does not figure into your expenses on the Means Test or on Schedule J. And, as Aa said, the minute you file, you come under Automatic Stay that falls into place and you are no longer responsible for paying the debt.

So when you get all planned to file, you might notify your payroll dept to stop making payments. Get a letter from your attny if necessary. Otherwise, payroll will continue deducting the garnishment for a while after you file BK.

[Winger19]

Wow that's a bummer. That $656 would have helped me pass the means test. Without it I would be over.

[aa06a47]

Wow that's a bummer. That $656 would have helped me pass the means test. Without it I would be over.

Question, would you be better off making payments in a chapter 13 or with the garnishment? You will need to decide this before filing. You need to figure out if your chapter 13 payments will be more or less than the garnishment.

[no_it_all]

Wow that's a bummer. That $656 would have helped me pass the means test. Without it I would be over.

Have you actually done the calculation or just looked at the number for your state and compared it to what you make?

[Winger19]

Have you actually done the calculation or just looked at the number for your state and compared it to what you make?

I've downloaded the forms and done the test multiple times. After the allowed deductions for my state I'm still over. Close, but still over.

I heard that the allowable expenses were due to go up soon. Any truth to that?

I was also wondering about my wifes income. I would be filing by myself. She has credit cards that she pays on with her checking account. Would I be able to subtract that part of her wages as that part of her income goes to her bills and not part of the total house budget?

[gak555]

Accordigng to the official site, expense allowances are due for a change in August or September.

[SinkingFast]

I've downloaded the forms and done the test multiple times. After the allowed deductions for my state I'm still over. Close, but still over.

I heard that the allowable expenses were due to go up soon. Any truth to that?

I was also wondering about my wifes income. I would be filing by myself. She has credit cards that she pays on with her checking account. Would I be able to subtract that part of her wages as that part of her income goes to her bills and not part of the total house budget?

When you are married and filing single, the spouse's earnings do come out.

Exactly how it's done, not sure. Who get's what expenses and whatnot.

An attny could explain all that to you.

Consults are generally free. Call and make a few appts to chat with dif attnys. See what they have to say.

[Winger19]

I'm going to call a few Atty's today. Thank so much for the help.

If my wife income were to come out somehow that would make my life so
much easier.
Thank you again!