Bankruptcy Means Test

[RickD]

Our means test is fixed so you can now enter all expenses including other necessary expenses. You can experiment with the "other expense category" so your budget will remain without an excess to pay unsecured creditors. Don't forget to look at mandatory payroll deductions. Also, if you can justify an additional 5% for food and energy cost then you can bump this expense up too. You will need to show some proof to the trustee for charitable expense, extra food, etc.

If you forget to consider each expense category carefully you may find yourself paying unsecured creditors when you do not have to. If you are slightly above or below the median then you may just tip the scales in your favor by using these justifiable expense loopholes.

you can see our work in progress at http://www.bcande.com/bankruptcy.html

you can play around with our program for free.

Rick

[hhou812hh]

Our means test is fixed so you can now enter all expenses including other necessary expenses. You can experiment with the "other expense category" so your budget will remain without an excess to pay unsecured creditors. Don't forget to look at mandatory payroll deductions. Also, if you can justify an additional 5% for food and energy cost then you can bump this expense up too. You will need to show some proof to the trustee for charitable expense, extra food, etc.

If you forget to consider each expense category carefully you may find yourself paying unsecured creditors when you do not have to. If you are slightly above or below the median then you may just tip the scales in your favor by using these justifiable expense loopholes.

you can see our work in progress at http://www.bcande.com/bankruptcy.html

you can play around with our program for free.

Rick

Still curious how they got "tougher" with the code and yet left so many loopholes in it. I usually donate on average of $50 dollars a month (give or take)to veterans causes.

If I decided to donate lets say $550 instead per month would this put me in a ch7 even with a decent income?

I'll imagine they would look back to see how long a debtor has been donating.

I do understand if you don't have an answer since this is all still very new.

Thank you in advance!

[RickD]

Other Necessary Expense

The charitable expense you mention may not be reasonable or necessary. This is the key and the trustee will not only ask for proof of the expense but will have to make a determination if it is necessary. If your donation was to a church this item would be treated differently because when it comes to the "God Thing" the trustees hate to object to a 10% tithing expense for example.

If you carefully look at ALL the "other expenses" you can probably pad your budget with other items more easily. The one I like is the additional 5% allowed for food and energy. How can a trustee really object to that? How about protection against family violence? Do you have an alarm system at your home?

Rick D

PS: all potential debtors should get this means test out of the way early on just to know where you stand.

[hhou812hh]

The charitable expense you mention may not be reasonable or necessary. This is the key and the trustee will not only ask for proof of the expense but will have to make a determination if it is necessary. If your donation was to a church this item would be treated differently because when it comes to the "God Thing" the trustees hate to object to a 10% tithing expense for example.

If you carefully look at ALL the "other expenses" you can probably pad your budget with other items more easily. The one I like is the additional 5% allowed for food and energy. How can a trustee really object to that? How about protection against family violence? Do you have an alarm system at your home?

Rick D

PS: all potential debtors should get this means test out of the way early on just to know where you stand.

I had a feeling it was referring to the "God Thing". Actually whether they want to object or not it's the law that they have to allow tithing like it or not. The protection against family violence is self explanitory as is the energy costs.

I'm trying to understand the 5% more for food. How do you ask the courts for an additional 5%? Is this for someone with an eating disorder? Do they give you an additional 5% knowing that food will go up while in a ch13 plan? We can all say we need more for food, but I don't know how this will play out. I guess we will find out after next week.