Means Test -- Deduction for Ch. 13 Administrative Expenses

[getouttadebt]

I am curious about the proper calculation to arrive at an estimated Average Monthly Administrative Expense of Ch. 13 case which is entered on Line 45. This is used on Form B22A.

I thought I read in NOLO that the calculation is as follows:
First calculate Line 45a - Projected average monthly Ch. 13 plan payment
For this, add lines 42,43,44
Calculate the threshold debt payment amount by first multiplying total non-priority debty by 0.25
Then, divide the total on Line 54 by 60 (for the average monthly payment you would have to make to pay down 25% of unsecured debt over five years).
Add this number to the Total on lines 42, 43, 44 and enter the results on Line 45a.
Line 45b is the current multiplier for your district
Multiply Line 45a by 45b and enter this amount on Line 45c.
This is the amount of deduction afforded the debtor for the Average Montly Administrative Expense of Ch. 13 case.

Can someone confirm this is correct?

[lrprn]

I am curious about the proper calculation to arrive at an estimated Average Monthly Administrative Expense of Ch. 13 case which is entered on Line 45. This is used on Form B22A.

Did you mean to say Ch 13? If you did, then the Ch 13 forms are B22C - you are looking at the wrong forms. Only Ch 7 uses B22A.

[getouttadebt]

Part of Form B22A for Chapter 7 allows a petitioner of Ch. 7 to deduct the Average Administrative Expense if debtor is eligible for Ch. 13

Sorry if my question was not clear, but this is for Ch 7, not 13. The question revolves around Lines 45a, 45b, and 45c.

Thanks,
getouttadebt

[lrprn]

Part of Form B22A for Chapter 7 allows a petitioner of Ch. 7 to deduct the Average Administrative Expense if debtor is eligible for Ch. 13

According to the new B22A forms that went into effect Jan 2008 (http://www.uscourts.gov/rules/BK_For...22A_0108v2.pdf), here's what is stated on Line 45:

Chapter 13 administrative expenses. If you are eligible to file a case under chapter 13, complete the following chart, multiply the amount in line a by the amount in line b, and enter the resulting administrative expense.
a. Projected average monthly chapter 13 plan payment.
b. Current multiplier for your district as determined under schedules issued by the Executive Office for United States Trustees. (This information is available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court.)
c. Average monthly administrative expense of chapter 13 case total: Multiply Lines a and b

Since you are filing Ch 7, I assume you can't or don't want to file Ch 13. In that circumstance, I don't understand why you would fill Line 45 in at all.

Are you filling in the B22A forms to make a personal guess how you are going to come out? Or are you intending to file pro se (without a lawyer)?

[getouttadebt]

Are you filling in the B22A forms to make a personal guess how you are going to come out? Or are you intending to file pro se (without a lawyer)?

Thanks, lrprn. I filed with an attorney. The number seems high to me and I just wanted some explanation of how that number in 45a is derived. This info will help me double check some things and prepare for our opposition fight against the UST.

The reason we are calculating this is because we get to deduct the administrative fee as part of the means test. I have always contended that one should always maximize every deduction allowed in life -- whether in Court or from the IRS.

I appreciate your insight, lrprn.

getouttadebt