means test question.

[saucey]

does anyone know if you can still do a chapter 7 if your a little over the income for the means test and have negative disposable income.

[SinkingFast]

The Means Test does allow for a certain degree of flexibility in regards to what you earn and the Median Income figures.

You can claim Secured Debt payments in excess of the allowables for Housing and Autos on the Means Test. Also if you owe the IRS or State for taxes or you have other Priority Debts, those can be included as well. So if you have house and/or car payments, or any type of Priority payments, that could take care of your excess income right there.

[FoolAndHisMoney]

does anyone know if you can still do a chapter 7 if your a little over the income for the means test and have negative disposable income.

Do you mean the median test or the means test. If your over the median then the means test applies. If your over the $166 for the means test then you can only file a chapter 13. This is the new law. It doesn't care how negative your actual budget is. The means test is guarding the chapter 7 gates unless you show special circumstances.

[saucey]

so you have to pass the median test first(which is the income test one,right?)then if you fail that,then you take the means test.is that right?is that the disposable income one?sorry if these are stupid questions.

[macsen]

Yes. If you fail the first test (median income) you go on to the second. We just filed a Ch. 7 today and are significantly over the median income for our state but our expenses leave us with less than $166. Our lawyer feels we won't have a problem going Ch. 7 instead of 13 but few things in life are guaranteed I suppose. Making above the median does not mean you're automatically bound for 13 though. All depends on your expenses.

[saucey]

okay.now i get it.thank you!