Means Test and Health Insurance?

[ccmisery]

I am going to be paying my wife's health insurance around $500/month, just wondering if anyone has any experience on the means test and what it allows as an expense? Can this lower my % payback due to the high cost, I have to pay on a monthly basis?

[Floridagail]

I would think it is allowable , but at what amount? We are wondering about life insurance. I know it must be termlife.

[keepsmiling]

It is what it is. Don't sweat it. Use actual numbers and don't forget co pays and deductibles.

[HHM]

Health insurance is rarely an issue in BK, so long as that is the actual number, no problem.

[ccmisery]

It's roughly $500 a month total, deducted twice out of my paycheck. If and when she finds a job and possibly get's her own insurance coverage and this expense ecnds, will that change things on the % payback at that time and on?

[LadyInTheRed]

It's roughly $500 a month total, deducted twice out of my paycheck. If and when she finds a job and possibly get's her own insurance coverage and this expense ecnds, will that change things on the % payback at that time and on?

Not likely, unless it comes up in connection with a petition to modify the plan, or you have to send tax returns to your trustee and he/she notices a difference in taxable income because she pays less than $500 for insurance at her new job. Or if the reduction in the expense is something you would have to report to the trustee. Ask your attorney.

ETA: If your wife gets a new job and household income increases, you may have to report the increase and modify your plan anyway.