Had first phone consultation with lawyer...

[baguy]

today. It was short, I told him about my situation and my plans to file Chapter 7 in northern district Illinois. I'm married filing singly, we're over the median income, but I thought I would qualify for a 7 based on passing the means test. We started talking about the means test, and he had a shoker for me. He told me that I was only able to use the IRS standard amount for my mortgage payments on the means test. The IRS standard is about 1400 for us, and my true mortgage payments are about 3300. I would obviously be pushed into a 13 if this is the case. I was under the impression from all the posts I read here that you are able to deduct your true mortgage payments for the means test. He laughed when I told him this.

So who is right, the lawyer or all of you guys? Anybody have any experience in a situation like this in Northern Illinois? Is this lawyer just trying to push me into a 13 or is he right?

Thanks guys!

[ThreadsSnapping]

You use the IRS standard on the means test and your actual payments on your Schedule J. Have you tried doing the means test yourself at legalconsumer.com?

TS

[MomIcantFindmy]

I would interview a few different attorneys.

[jessegirl]

Go to a different attorney.

[baguy]

@ThreadsSnapping:

Yes, I took the online means test there. It appears that there that your true mortgage payments are used in the calculations. Here is a snippit from that online calculator:

"Subpart 5C: Deductions for Debt Payment
The means test places no limits on deductions for mortgages or car loans. All secured debts for a car or home can be deducted. Period.

Some commentators suggest that more people will be able to file for Chapter 7 under the new law, because, under the old law, the "reasonableness" of such expenses was considered by the judge. See editorial by James P. Caher, Why the Means Test May Mean More Chapter 7 Filing (and Other Unintended Consequences of Bankruptcy Reform), BestCase Scenarios, Summer 2005, (newsletter for owners of BestCase bankruptcy software)."


So, I'm not sure who to believe. I guess I should belive the BK lawyer that has 14 years experience over the internet, but I'm not sure.

[ThreadsSnapping]

You might be right. We rent so we just took the standard. Since your mortgage payment is bigger than the allowance you would take the entire payment under the secured debt section and nothing on line 20B. If it was less you would take the secured part and the difference between the 2 on line 20B. Clear as mud ain't it?

TS

[Cali]

We are over the IRS standard as well. We put the actual amount we pay each month on Schedule J and the IRS standard amount on line 20A on the means test.