How is payback amount calculated?

[mummy]

If we file Ch 13 how is the amount we payback calculated?

Because we have 2 kids in childcare so we can work we have very little to no $ left over at the end of the month.

We're really hoping to qualify for a 7 but the lawyer thinks our income is too high.

[tjs1970]

it is complex and a good lawyer will look at all angles..............all lawyers are not equal in knowledge, ability to be creative and motivation.......i found this out VERY fast........do not just go to the first attorney........talk to SEVERAL, and then decide........

[debtinohio]

Give the means test a try...

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

[justbroke]

It doesn't matter how much money you make; it matters how many expenses you have to offset that income. Childcare costs are expenses that are allowed. What you may find is that if you didn't pay your credit cards, you may actually have money left over, even after spending it on childcare and living costs.

As suggested, interview several attorneys. If you take that on-line means test a LealConsumer.com and it tells you that you pass the means test, then you "should" be able to get into a Chapter 7. (There are some caveats and an attorney can help you sort through any issues.)

[mummy]

I took the online means test and passed when we factor in childcare and failed when we took it out.

I thought they would look at IRS standards for our expenses but could not find one for childcare to find out if someone will try to tell us to find "cheaper" alternatives.

Thanks!

[justbroke]

I took the online means test and passed when we factor in childcare and failed when we took it out.

There are no IRS standards for childcare. If you look at the Means Test for Chapter 7 (Form B22A), you'll notice Line 30 for Childcare...

You will need proof of the expense. Depending on where you live (State/County/City), $1,000 month may seem excessive, but Trustee's and everyone knows that childcare is expensive! Premium daycare services may also be permitted. This is an "actual" expense category, so that's why there's no IRS standard for it.

[JimKutkowski]

If you are over median, you need a lawyer, that is a stone-cold lead-pipe lock. The B22C makes me want to cry sometimes, and I've been at this for a while now.

[justbroke]

(Oops... I wrote B22A for a Chapter 7 means test.) I'll have to agree with Jim. Fighting over the expense categories where they are "actual" can get you into some litigation with the Trustee. While that $1,000/month sounds excessive (even to me), a good Chapter 13 attorney may be able to still get that amount, or close to that amount, as an allowed expense.

If Form B22C made Jim cry, then I'm not such a baby afterall! (What a confusing, discombobulated, hyper-technical, unrealistic, inaccurate and unreliable.thing that Means Test (B22C) is!)