Question: Is DMI -$13 going to be OK

[contest]

My DMI came out to -13 on the means test. My lawyer think it will be ok, but said that the UST may want to look into it, because we are also very close on the median income test. We are below, but only by a couple of hundred per month.

Does anyone see any issues, or is it really as my lawyer says...just preparing for a remote possibility?

[chriselle]

if your DMI is less than $169 then you are good. the only thing is are your listed expenses are justifiable? if they are you are clear to go to 7

[contest]

They are justifiable. We could probably bring that number down even more if we really tried. Thanks for the reassurance.

[ladyjenn]

if your DMI is less than $169 then you are good. the only thing is are your listed expenses are justifiable? if they are you are clear to go to 7

$169 is the magic number? I heard it was $100???

[hankhill]

That's weird. Our attorney (who we have only met with once) said we didn't have to take the means test since we are under the median (and not really that much under either). We live in in Vancouver, Washington, FYI

[Fallonedward]

if your DMI is less than $169 then you are good. the only thing is are your listed expenses are justifiable? if they are you are clear to go to 7

Does anyone know if paying back your 401K monthly qualifies as a listed expense in determining your DMI

[ssmdem]

Does anyone know if paying back your 401K monthly qualifies as a listed expense in determining your DMI

I've been told no.

[HHM]

Does anyone know if paying back your 401K monthly qualifies as a listed expense in determining your DMI

Doesn't count in chapter 7.

HOWEVER, if that is the ONLY expenses that pushes you over, then you can stay in chapter 7. Reason being, the 401K loan is an allowed expense for a chapter 13. So if the choice is chapter 7 or a zero payment chapter 13, the courts will allow you to stay in a chapter 7.

If you are under median, you do not do the DMI portion of the Means test. However, you must still show an inability to pay back creditors on schedule I & J. (income and expenses).

However, if you are slightly over median and your DMI is only barely negative, it doesn't take much for the UST to push it over. So, you need to make sure your expenses are really in line, and justifiable.

[Fallonedward]

Doesn't count in chapter 7.

HOWEVER, if that is the ONLY expenses that pushes you over, then you can stay in chapter 7. Reason being, the 401K loan is an allowed expense for a chapter 13. So if the choice is chapter 7 or a zero payment chapter 13, the courts will allow you to stay in a chapter 7.

If you are under median, you do not do the DMI portion of the Means test. However, you must still show an inability to pay back creditors on schedule I & J. (income and expenses).

However, if you are slightly over median and your DMI is only barely negative, it doesn't take much for the UST to push it over. So, you need to make sure your expenses are really in line, and justifiable.

My income falls in the family of 3 amount and we are a family of 5 so I'm way under. I have a negative DMI but if I take out the $630 401K repayment I have a positive DMI of $301. So does everyone think I should be fine for the 7 then

[nc73]

My income falls in the family of 3 amount and we are a family of 5 so I'm way under. I have a negative DMI but if I take out the $630 401K repayment I have a positive DMI of $301. So does everyone think I should be fine for the 7 then

You are under the median. I wouldn't lose sleep over it you will be fine.

[Fallonedward]

You are under the median. I wouldn't lose sleep over it you will be fine.

[nc73]

I'm also 10k under and trustee didn't argue any expenses. I don't know by how much but I was positive dmi. I didn't care to look because my lawyer said it was going to be ok and he was right! Didn't get asked for my bank statements either at the 341. Actually never needed any bank statements during filing.

[Clouddancer]

Doesn't count in chapter 7.

HOWEVER, if that is the ONLY expenses that pushes you over, then you can stay in chapter 7. Reason being, the 401K loan is an allowed expense for a chapter 13. So if the choice is chapter 7 or a zero payment chapter 13, the courts will allow you to stay in a chapter 7.

If you are under median, you do not do the DMI portion of the Means test. However, you must still show an inability to pay back creditors on schedule I & J. (income and expenses).

However, if you are slightly over median and your DMI is only barely negative, it doesn't take much for the UST to push it over. So, you need to make sure your expenses are really in line, and justifiable.

I know that 401K repayment is not used on the means test, but where do you deduct the 401K repayment on the schedules? Does it come off the income, schedule I, or listed as an expense under schedule J?

[Fallonedward]

I'm also 10k under and trustee didn't argue any expenses. I don't know by how much but I was positive dmi. I didn't care to look because my lawyer said it was going to be ok and he was right! Didn't get asked for my bank statements either at the 341. Actually never needed any bank statements during filing.

That is really good to hear, my teenage boys eat like they have hollow legs and we are driving very far distances to other states for interviews and that gas adds up fast