Attorney Meeting Result - Means Test
I want to share what I got today. Hopefully it would be helpful for others, especially newbies. 
Finally, I met a BK attorney and ran the means test. (I'm in CA)
(1) Income: Full Time / Rental Income
(2) Payments
- My income will be reduced sometime soon and it would be a little higher than the State Median Income (But it takes several months you know)
- I will stop receiving a rent from September to reduce my income and also stop paying 1st and HELOC.
(3) Things that I didn't know in Means Test 1
In the previous posting, several neighbors mentioned that mortgage payments for the rental property will be included even though I surrender
They were so right! My attorney even included my rental payment (for the house I live in) in the means test. It means that my expenses include two mortgages and my monthly rent. THIS HELPED A LOT TO BE QUALIFIED IN CH7!!!
However, I still need to wait 5-6 months because I am stopping the rental income from September. So it takes several months to be qualified for CH7.
(4) Things that I didn't know in Means Test 2
I thought that I can claim my student loans in the means test but he didn't.
(5) My plans
I am going to stop ALL PAYMENTS except car loans, student loans and utilities.
I would receive thousands calls from creditors or collections for about 6 months. I should get over this though.
(6) Prepare the worst scenario
Just in case one of the creditors sue me before I file, e.g., 3 months from now, I will file ch13 first to stop any judgements and later I will convert it to ch7.
I know it's very(!) expensive in terms of att fees, etc, however, this plan make me comfortable.
I will keep updating all the processes in the future.
Thanks for all your input and advices. It's been really helpful for the means test as well as understanding bk.
The att told his assistant that "This gentleman knows as much as you do. He looks researched a lot......." LOL
Yes, I researched a lot because I wanted to know the right course for BK.
Thanks again all your help.
Finally, I met a BK attorney and ran the means test. (I'm in CA)
(1) Income: Full Time / Rental Income
(2) Payments
- My income will be reduced sometime soon and it would be a little higher than the State Median Income (But it takes several months you know)
- I will stop receiving a rent from September to reduce my income and also stop paying 1st and HELOC.
(3) Things that I didn't know in Means Test 1
In the previous posting, several neighbors mentioned that mortgage payments for the rental property will be included even though I surrender
They were so right! My attorney even included my rental payment (for the house I live in) in the means test. It means that my expenses include two mortgages and my monthly rent. THIS HELPED A LOT TO BE QUALIFIED IN CH7!!!
However, I still need to wait 5-6 months because I am stopping the rental income from September. So it takes several months to be qualified for CH7.
(4) Things that I didn't know in Means Test 2
I thought that I can claim my student loans in the means test but he didn't.
(5) My plans
I am going to stop ALL PAYMENTS except car loans, student loans and utilities.
I would receive thousands calls from creditors or collections for about 6 months. I should get over this though.
(6) Prepare the worst scenario
Just in case one of the creditors sue me before I file, e.g., 3 months from now, I will file ch13 first to stop any judgements and later I will convert it to ch7.
I know it's very(!) expensive in terms of att fees, etc, however, this plan make me comfortable.
I will keep updating all the processes in the future.
Thanks for all your input and advices. It's been really helpful for the means test as well as understanding bk.
The att told his assistant that "This gentleman knows as much as you do. He looks researched a lot......." LOL
Yes, I researched a lot because I wanted to know the right course for BK.
Thanks again all your help.
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