trustee wants means test recalculated to consider garnished salary

[jamesch13]

Hi everybody,

I had my creditors meeting last week.
my salary have been garnished by the IRS from june-august, at that time, i was only receving $17.46 a week. 'twas really a tough time for me.

my question right now is, i think the amount of salary that the IRS may have garnished amounts to 13K, the trustee wants the means test on my petition recalculated so as to include the garnished amount, my question is, which line or on which part in the means test should i put the garnished amount so.

thanks a lot. apereciate whatever input you can share with me.

[justbroke]

Hi everybody,

I had my creditors meeting last week.
my salary have been garnished by the IRS from june-august, at that time, i was only receving $17.46 a week. 'twas really a tough time for me.

my question right now is, i think the amount of salary that the IRS may have garnished amounts to 13K, the trustee wants the means test on my petition recalculated so as to include the garnished amount, my question is, which line or on which part in the means test should i put the garnished amount so.

thanks a lot. apereciate whatever input you can share with me.

it is part of your salary.

The Trustee is probably going to attempt to void it as a "preferential" payment (preferential treatment).

In order to calculate your CORRECT payment and income, the Trustee needs to see your income sans the garnishment.

In the Means Test, there is no place to put garnishments, because they are not enforceable during a Chapter 13 Bankruptcy. So, the Trustee wants to see your income without that.

So to answer your direct question... you shouldn't have ever deducted the garnishment.

If you earn $1K a week and have a $975.00 garnishment... you would have entered your average income as 24 times your weekly salary. You would NEVER mention or record the garnishment in the means test.

(I have an IRS garnishment also. I don't understand how the IRS took $13K in 2 months. The maximum they are allowed to take from payroll is $350.00 a month!!!!! That's in the Regulations. Something is wrong.)

[jamesch13]

that's what i thought when i was preparing the petition that's why for the initial filing of the petition, i did not include the garnishment in the calculation of the means test ( i have included it in Sched J though). however, during the creditor's meeting, the trustee said that i should have included it in the means test, that's why im confused as to which part of the form should i include it. thanks

[justbroke]

that's what i thought when i was preparing the petition that's why for the initial filing of the petition, i did not include the garnishment in the calculation of the means test ( i have included it in Sched J though). however, during the creditor's meeting, the trustee said that i should have included it in the means test, that's why im confused as to which part of the form should i include it. thanks

OK, now I'm confused.

When you write "i did not include the garnishment in the calculation of the means test" what exactly do you mean.

Did you, on Form B22C, enter your actual GROSS earnings on line 2 (Gross wages, salary, tips, bonuses, overtime, commissions.)?

Or, are you saying that you took your gross and subtract the garnishment first, before entering the result on line 2?

[jamesch13]

garrnishment was not considered at all in calculating B22C.

as to your question: Did you, on Form B22C, enter your actual GROSS earnings on line 2 (Gross wages, salary, tips, bonuses, overtime, commissions.)? the answer is YES.

so my question now is in which part of B22C should i put the garnishment so that it can be put into consideration when calculating the means test.

thanks