Means test clarification

[speculate]

I'm a little confused and wanted some clarification on this.

I understand if your income is below the state median, you qualify and that's the end of that.

However, if your income is above the average, other calculations are done to see if you can still qualify. Ok, so if that's the case and in determining whether you have any disposable income leftover after your expenses - do the expenses pre-bk factor into this or is it trying to figure out if AFTER all your debt pre-bk was discharged, will you still have any income leftover to pay back pre-bk debt. For example, let's say I have 60k income and 7k mortgage. Obviously I wouldn't be able to support this so I'd pass. But if I'm not paying the 7k mortgage anymore and don't plan on keeping the house, then I have income leftover. Does this mean that my other expenses (utilities, car, etc) that I will have to pay must be large enough in relation to the 60k to qualify? Basically, does the fact that I am paying the 7k mortgage or not and whether I intend to continue paying that make any difference or is the fact that there is a 7k month obligation enough to pass.

[justbroke]

Putting the Means Test aside, it is always income (Schedule I) less expenses (Schedule J)... regardless of whether you are over or under the median. Expenses are "allowed" if they fit the IRS guidelines are are both supported by documentation and reasonable (with some limitations based on the IRS guidelines as a "ceiling" to certain expenses).

[sgirl]

This clarifies it some:

[BKDefender]

speculate,
They take your average PAST 6 months of income and determine if you can pay your FUTURE expenses. Sounds crazy doesn't it.

Imagine if a single person making $6k/month lost their job and filed bankruptcy 1 month later. They couldn't file a Chapter 7 because their past 6 month average income was too high but they couldn't file a chapter 13 because they don't have a current income large enough to result in a positive cash flow after reasonable and allowed expenses.

William