Have questions please help

[mindyandy420]

My husband & I are thinking of filing chapter 7.
We are a family of 4 and make gross income of $5900 a month. (why they go by gross income and not net?)
For the state of Washington we fall below the means test. But after paying all my livable bills we have money left only because its by gross income not net. Net income we have nothing left.
Because they go by gross we have about $1000 left over.
If I were to decide to put my son in kung fu classes and increase my expenses would that make me eligable? I don t want to be forced into a chapter 13.

Net income which is our take home pay we are not making it. That $1100 of taxes that they seem to incude is not the money you actually have to take home. Ya know.

Any advice?
Thank you
Broke in Washington

[JRScott]

Kung Fu classes would be deemed a luxury.

Are you sure you've not overlooked some expenses or underestimated some?

[mindyandy420]

hmmmm

Since they take out the taxes we pay every month $1000. then we dont have any disposable income. Since they go by gross income then it shows that we do have disposable income....(which we dont this is taxes????

[StartingOver08]

Have you filled out the means test for yourself? Check this link for the means test:

http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm

Go here to search that site too: http://www.usdoj.gov/ust/

The taxes that are taken out of your paycheck are a line item....

[mindyandy420]

thank you

No I havent taken it. I have a hard time understanding the mumbo jumbo. I will try right now...Thank you

[StartingOver08]

No I havent taken it. I have a hard time understanding the mumbo jumbo. I will try right now...Thank you

We ALL have a problem understanding government mumbo jumbo! That's why we are here! Ask away....

[Tbornetun]

If you are under median for gross income on the means test, you qualify for Ch. 7. If you don't fall under the median in the first part of the means test, the next sections allow you to deduct living expenses and income taxes. Also, on schedule I, you deduct your taxes from your income and in schedule J you put your other expenses. This shows your actual disposable income.

[BROKENN]

Have you filled out the means test for yourself? Check this link for the means test:

http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm

Go here to search that site too: http://www.usdoj.gov/ust/

The taxes that are taken out of your paycheck are a line item....

I love this site too! Here's another link to it with great info:

http://www.usdoj.gov/ust/eo/bapcpa/20081001/meanstesting.htm

[JRScott]

Yep as they are saying you will take the taxes out, that's a very much allowed expense so your not anywhere near as bad off as you thought

[mindyandy420]

thanks

Thank you you guys. Yes after taking out my taxes i dont have any disposable income. I'm actually in the negatives....THATS WHY I'M BROKE...