Ok how about this for a disposable income situation?

[Hollyhomemaker]

Darn, it won't let you edit the subject line! I meant how is this for a disposable income situation. (From BassBoy: I fixed it for you )

I am filing individually in April, after I get my tax return and after it's been 6 full months since credit card usage of any kind per my lawyer's insistence.

Anyway dh and I last night did a rough draft of an income and expense sheet using the IRS's allowed amounts, and not only do we not have $100 disposable, but holy cow, going with the IRS's allowed amounts of expenses, we are $1k in the whole every month!

Now granted we really aren't because the IRS's allowed expense amounts are way way way above above what we really use for food, electric, etc etc. Their numbers are blowing my mind. I mean, just the allowed expense amounts for "food clothing and other items" alone take up all but $300 of Dh's monthly earnings and that doesn't take into account housing and transportation and all the other expenses.

If DH and I turned in the expense amounts going by the IRS's amounts and it shows we are $1k in the whole wouldn't that red flag the trustee or does he only look for people who swing the other way and have more than $100 disposable income?

I am obviously not going to use the IRS allowed amounts because it will look downright ridiculous.

[kiddles]

On the means test, you have to use the IRS allowable expenses. On the statement of your actual expenditures you use your actual projected expenditures.

Next year (Feb, I believe) they are revising the allowable amounts downward, because so many trustees have been complaining that some people are "getting away" with Chap 's when they "should be" in Chap 13.

[boinga]

My disposable income on the means test was also negative, by about $400. You don't use those amounts on your schedule of actual expenses. Everything my lawyer put down were the actual amounts What's nice though is that your expenses will probably all fall below the IRS allowances, which looks good. I was told that having everything at or near the IRS allowances raises red flags.

Are you above or below the median income? If you're below, you don't need to do the means test anyway. Mine was slightly above, but the cost of living in my local area is very high, so I guess that's why I still pass the means test.

[magyar123]

On the means test, you have to use the IRS allowable expenses. On the statement of your actual expenditures you use your actual projected expenditures.

Next year (Feb, I believe) they are revising the allowable amounts downward, because so many trustees have been complaining that some people are "getting away" with Chap 's when they "should be" in Chap 13.

Don't think it's the trustees complaining, but the creditors pushing the trustees to suggest the revisions. Hey, creditors/banks bought and paid for the 2005 laws, now they're attempting to line their pockets even further.

[Hollyhomemaker]

On the means test, you have to use the IRS allowable expenses. On the statement of your actual expenditures you use your actual projected expenditures.

Next year (Feb, I believe) they are revising the allowable amounts downward, because so many trustees have been complaining that some people are "getting away" with Chap 's when they "should be" in Chap 13.

No, that is not true. The amounts are going UP for expenses in 08: http://www.irs.gov/businesses/small/...104627,00.html

Not only that but I found out on the irs's website( but for the life of me I cant find the link and I dont have enough time to go searching for it), but for 08 they've even added two more allowable expenses; one for out of pocket health care and they are allowing up to $1500 a year for private school tuition, which is nice because I homeschool and homeschool is seen as private school in the eyes of the law.

Thanks for responding but I needed to correct that one point. Have a good night!

[Hollyhomemaker]

My disposable income on the means test was also negative, by about $400. You don't use those amounts on your schedule of actual expenses. Everything my lawyer put down were the actual amounts What's nice though is that your expenses will probably all fall below the IRS allowances, which looks good. I was told that having everything at or near the IRS allowances raises red flags.

Are you above or below the median income? If you're below, you don't need to do the means test anyway. Mine was slightly above, but the cost of living in my local area is very high, so I guess that's why I still pass the means test.

Hi there's a two punch requirement for Chapter 7; the means test and then the disposable income situation. I am 50K a year UNDER the median, so there's no presumption of "abuse" however I still need to qualify for the chapter 7 by making sure I don't have $100 a month of disposable income otherwise I'll be pushed into a Chapter 13.

I am definitely going to use my actual expense amounts because showing myself at being a $1k in the whole every month would look just plain ridiculous.

[SinkingFast]

I am definitely going to use my actual expense amounts because showing myself at being a $1k in the whole every month would look just plain ridiculous.

That's almost as much a "red flag" for the BK Court as looking to Discharge in excess of $100K in debt.

Being minorly negative every month is one thing. Being hundreds of $$$'s negative every month is a whole different story.

Also,............ If you're below the Median,......... You don't completely fill out the Means Test.

Use Form B22A. When you get to Lines 13 and 14, you compare your actual earned income to the Median. Since you're below, on Line 15, you check the box for "Presumption Does Not Arise" and you're done.

[kiddles]

Even if you're below the median, you stil have to complete schedules I and J (income and acgtual expenses).

ANd the IRS for it's purposes may be increasing allowances, but for BK purposes, they are going down. Our trustees say by quite a bit.