means test, lawsuits and other assorted messes...

[whatamess]

I have been searching & searching but cant seem to get an answer. If the median income for a family of four here in NJ is $88,000 and we fall into
only $35,000 this year when all pay & a lawsuit is totaled up, (Dh lost overtime) do we still have to pass a means test since we have no mortgage payment or rent expense?
We moved in with my widowed elderly mother back some years ago when she was scared of living alone and we were starting our money mess. It was a win-win, and we help her with expenses but that cant go 'on the books' for her to have things she depends on like reduced medications. We pay our own internet, cell, etc and pay 100% groceries for her and us four. I am hoping that we dont have to take a means tests as it may show about $100-$200 extra income that isnt really extra at all but helping with massive living
expenses.
Now Part deux...
last year I had a settlement from an auto accident that left me with non-stop bak pain and numbness. It was $20,000. I had $11,000 after lawyer and Dr.'s took cuts.
Will that be a factor, in other words would they try to take it back? I mean its long gone, I used it (oddly enough) to catch up on Cc payments and buy a bed. All I can dig up is lawsuits started on after BK was started or done in the 180 days afterward.
I have a headache.
Whatamess.

[SinkingFast]

Below the Median, you complete Form B22A and stop at Line 15. So no need to complete the Means Test showing expenses.

But you will have to complete Schedules I and J. I is income. J is expenses. Below the Median, many Courts are looking at the comparison of Schedule I to Schedule J to determine disposable monthly income.

http://www.uscourts.gov/bkforms/bankruptcy_forms.html

If you're gonna have a problem with expenses, it's gonna be I to J. Be sure to start saving all receipts for all bills you pay. If you pay the electric, even tho the acct is in Mom's name, save the receipt as that's money that you've paid out. You could have that type of "rental" agreement with your mother. You get to live "rent free" for paying all utilities and such. Just because you do not have a standard Lease or monthly mortgage payment does not mean you do not have expenses.

How long ago, in relation to when you plan to file, did you receive the settlement payment? If it wasn't within the 6 month CMI window, you shouldn't have to worry about it.

[whatamess]

More than six month

The settlement was in May of this year, and we plan to file in December, enough time to pass 90 days on our last cars purchase. We are scraping to keep up to date on paying a loan that we had to just pay out of collection as they threatened us into sending us to an agency. That was only after three weeks late! I hate this loan 'bank', I have has so many problems with them.

Even CCC could not help us there. They wanted $900 a month from us when we only make about $1600. How in the heck would we buy gas, make a car payment and fee a family of four that way?


I will start saving receipts as of today. I guess because the bills are in my mothers name I should save canceled checks? I have always given her cash, so I guess I should start writing checks?

Can I add pet food and expenses in there? Three dogs takes a chunk out for sure. How about upcoming dental work I need done w/o insurance?

Thanks for the help!!!

[SinkingFast]

You said your mother is getting some sort of assistance. Giving her checks may mess with that.

Personally, I'd just purchase Money Orders, pay the bills myself, and attach the MO stub to the bill as your receipt. Even tho the acct is in Mom's name, you would then be able to show you paid it. And no paper trail back to Mom about the "excess income". If you catch my drift there.

That would also include the Dental work you plan to have. If you can, get a price for how much that's gonna cost. If you can make payments to the dentist, you can figure in the $$$'s/mo for that in your medical/mo expenses.

You can certainly claim pet expenses in the "Other" or "Miscellaneous" category. Some Trustees allow it, others don't. It will really depend on your Court.