Means Test - Charitable Donation and Telecommunication

[alo]

Throughout the year, we make donations to charitable organizations. But, they are not on a strict monthly schedule.

For the means test, I entered $50/month. For the six month look back, I bet this is accurate (really need to look at checkbook to confirm amount, may be more or less). Anyway, I pass the means test with an over-the-median-income with a DMI of about -$200. That is with the $50 monthly donation.

I am worried about the totality of circumstances pushing me into a Ch13. And while it is truly a higher mortgage and health insurance eat up my income, the little things count too.

I haven't gone as far as to purchase disability insurance 3 months before I file but...should I??

Also, what is the telecommunications exemption? Is this internet expense?

[btbeme]

First, you will likely be expected to provide some sort of proof for your donations. Can you? If it is an ongoing donation - even occasional - that can be documented, that works in your favor.

Second... Telecom is a standard and allowable deduction. You can be expected to have a phone. Even an internet phone. But woe and caution to those who claim higher than the standard deduction for such if relying on that number to put you under the threshold. Same goes for any "standard" deduction and expense. Gotta 'splain why it is necessary. and cross fingers. and expect that if you have more than one or two to 'splain that you will get the long road rather than the short road.

Last - if splitting hairs to reach the magic "no distribution" endgame, prepare plenty of evidence. Assume you will have to document that everything you claim as an expense is necessary. That helps a lot if the road gets bumpy.

[alo]

Thanks.

1 - Yes, I wrote checks for any donations so I have proof. Some are not religious based and I am hopeful this won't be contested.

2 - So, the 'non-mortgage utilities' allows for home phone 20, cell phone 100, electric 300, water/sewage 100, cable 65...I'm allowed $588 and spend that almost exactly (including basic cable). But if I throw in internet, I'm at about 635. So, in the 'telecommunication services' I have allowed $55 for internet. Correct? Or would this bill be part of the 'non-mortgage utilities'?? May be easier just to remove this breakdown...my electric is high cause our old A/C is working hard and sucking up the $$. I'd rather not raise any red flags no matter how legit!

3 - Good point. I'm not sure if I am splitting hairs. Although I recognize I am close. And, some of the little things are helping to get me under the wire. The numbers they allow in the means test are probably pretty accurate as far as what we spend. I have higher costs in allowable areas...mortgage, health insurance, child care. Have had these for over a year. The only extra items I claim are life insurance $53, donations $50 and telecommunications (internet) $65. Maybe I'll remove telecommunications.

With -$200 DMI we are close. Remove the telecommunications allowance and I'm still under. It is all legitimate and accurate. I will have records. But then I wonder if I should try to get disability insurance to further my negative number. It will be hard to pay for but I may be able to for three months before I file.

Which brings up another question... my car loan is $395 and I'm allowed almost an extra $100...think they will use that $$ to raise my DMI?

Maybe I am splitting hairs. Guess some of this is up to the trustee.

[tobee43]

we had thousands of dollars to charity the year we filed, however, when filing out the bk petition we attached all the receipts, we had none religious, but most all those thousands of dollars either were donations we made to the state or our local county, kind of hard for the trustee to argue the donation amount when most came from our state.

we were not even questioned by the trustee and all i can say it was well over 25k.

[LadyInTheRed]

alo, you aren't filing pro-se are you? Just give your attorney a list of your expenses and let him prepare your petition. He'll make adjustments if necessary based on his knowledge of the trustee. You are doing too much work when you get into this kind of detail. Let your attorney do the job you pay him for.

[alo]

Lady, I'm trying to make the case for my future attorney to file Ch 7. In past posts I've mentioned that during three consults, I've been slotted based on income into a 13. It helps me to know I have justification for continuing my search. But, thanks for the check.