Default Judgment - Include on Means Test?

[nceguyfromne]

I do not own any assets. The only thing the creditor could go after in the future would be my wages.

Any ideas?

I'm sorry, I should have read your post a little more carefully. I see what you're saying now. It is obviously not a Schedule J expense but in terms of the Means Test, I am pretty sure you are correct that this judgment is a legitimate non-priority debt that can be factored into your Means Test formulas to determine whether or not you have the means to pay at least 25% of your non-priority debt over the next 60 months and avoid being converted to a Chapter 13. It shouldn't matter at all that it is not being actively collected. A court has ruled you owe the money.

I guess the question is, after you factor every possible necessary expense you can justify and add up every unsecured debt you have, is there enough left to pay 25% of your unsecured debt? Hopefully not!

Of course, your other option is to wait it out until you're able to get your income snapshot low enough that you do not even have to take the Means Test. As long as there are no creditors nipping at your heels about to collect on another judgment any day now, you probably have some time.

[gman]

I'm pretty sure this is just another unsecured debt like any credit card. Unless you were, for some reason, to reaffirm this debt, I don't believe it would be listed as an expense. Did they creditor place a lien on any of your assets (i.e. real estate) after obtaining the judgment? If so then you might be able to put it into play somehow.

I do not own any assets. The only thing the creditor could go after in the future would be my wages.

Any ideas?

[nceguyfromne]

I'm pretty sure this is just another unsecured debt like any credit card. Unless you were, for some reason, to reaffirm this debt, I don't believe it would be listed as an expense. Did they creditor place a lien on any of your assets (i.e. real estate) after obtaining the judgment? If so then you might be able to put it into play somehow.

[Freddy03]

I was told my judgment didn't go on the means test. It just acts like a regular creditor.

I'm really not sure.

[gman]

Scenario:

* Likely filing Chapter 7 next month when my 6 month income average "dips"

* A $25k default judgment obtained by law firm/junk debt buyer (credit card debt) exists

* The junk debt buyer has not attempted (yet) to collect the $25k judgment (for whatever reason)

* I live in a state where wage garnishment can occur (and I experienced this recently with another default judgment of $7k as they garnished 25% of my take home pay for a few months.)

* I do not own a home / have assets

* I am recently unemployed

* I am currently still over the median income for my state even though I have not had income in 2 months - so I need to pass the Means Test to qualify for a Chapter 7

* A lawyer I met with informed me that the $25k judgment is a "good thing." he says that the $25k can be divided by 60 and the (monthly) amount included on the Means Test EVEN THOUGH IT WOULD BE WIPED AWAY IN A CHAPTER 7. I believe he wants us to put this on Line 44 of From B22A.

* I realize that this amount would NOT be part of Schedule J expenses, but I will be cutting it close on the Means Test and I could really use the "expense" of this Judgment. Once I pass the Means Test, I am 99% sure I will be OK with Schedule I & J, especially since I make no current income.

I have searched all over the Internet and cannot find any cases/opinions that have covered this scenario.

Does anyone:

A - Have an idea if this Judgment could be included on the Chapter 7 Means Test?

B - Know of any specific cases where this kind of scenario has been addressed?

Thanks for your help!