We are over the median now what??

[laurannm]

This is the second attorne we spoke to, the first one wouldn't run any numbers until we agreed to sign. So we said "See Ya". I just wonder that if he ran the numbers and we passed the means test and we are over by 20,000.00 and like i said before that sometimes we have 200.00 or less left over at the end of the month, that the trustee will say that you have some money left over so you have to do a chapter 13. Can they do that?

Unfortunately, yes. If you are showing $182.50 or more more in disposable income on the means test, than that is enough to fund a Ch 13 plan. Keep in mind that the means test uses primarily IRS standards for many of the expenses (and not your actual expenses, with some exceptions such as your mortgage). More often than not the IRS standards are lower than your actual expenses.

I would contact your lawyer and ask him if he did run a preliminary means....sounds like he probably did.

[jessegirl]

My attorney never told me what my final figure was on the means test that he did when we were there. The 200.00 and under left over at the end of the month is my figure. If i call there and ask for the figure, will tht sound odd? I wonder if they would even give it to me. Oh, I hate not knowing everything. LOL

[justplaintired]

My attorney never told me what my final figure was on the means test that he did when we were there. The 200.00 and under left over at the end of the month is my figure. If i call there and ask for the figure, will tht sound odd? I wonder if they would even give it to me. Oh, I hate not knowing everything. LOL

That is a perfectly fair question. I asked ours, well the paralegal the same question. She told me we are way good on the means test. I was in a panic when I added up my expenses that we wouldn't be alright for a C7, and we are way below median for our state. She reassured me once she had our paper work that we were fine and she would work on our expenses. Ofcourse I left stuff off, car maintenance, which in the last month has been unbelievable, forgot things like buying gifts for my kids, yes the expect bday presents and xmas!
So give them a call and ask more questions. It's the best way to know what is going on.

Good luck!

[Cali]

The way we made it was because our total deductions was more than our monthly income.

[thaynes]

I think the debt threshold (25% of total unsecured debt) comes into play if you are showing between $110 and $182.50 in disposable income. Anything more than $182.50 and you don't pass.

Yes you are correct. From nolo's site:

The limits used in the "means test" to determine eligibility to use Chapter 7 will increase: Filers who have less than $6,575 in disposable income will now pass the means test (the previous threshold was $6,000), and those who have more than $10,950 (previously 10,000) in disposable income will not be able to use Chapter 7.

Which comes to $182.50

[lrprn]

Being above or below the median income for your state isn't all that matters. Frankly what matters most are your expenses.

Disposable income to fund Ch 13 is calculated using a very complicated cross-comparison of your last six months of income compared to your typical expenses for your secured assets (house, cars) and your living expenses. You can't count in any money that's now going to pay credit cards or other unsecured debts.

This is why the only way to truly know if you have sufficient disposable income to fund a Ch 13 plan (the $182/month already mentioned) or not is for an experienced lawyer to plug your figures into the Means Test and Schedules to see where you come out. If one lawyer already did a rough "guesstimate" using your actual figures and thinks you qualify for Ch 7 (and that's possible even if your income is above median), then I would pursue that idea with other lawyers you meet with to see what they say.