Means test vehicle ownership

[adina]

I am trying to see if i qualify for a chapter 7 how do i complete the means test portion vehicle ownership. I have two cars one of which i pay 900 per month how do i enter it

[2manybills]

http://www.johnfire.com/meanstest/wizard.php

Try this link. This is pretty easy to follow and you can just enter the amounts to see if you qualify.

[backtoschool]

A 900 a month car is way over the irs allowances for one car. Here is a link to the irs site that tells you what you are allowed by state.

http://www.irs.gov/businesses/small/article/0,,id=104623,00.html

[2manybills]

True bts, for the IRS allowable car allowance portion of the means test, but under secured payments, the 900 payment is allowable. So in the means test, OP would get the IRS allowable amount for car allowance for his State.

[backtoschool]

True bts, for the IRS allowable car allowance portion of the means test, but under secured payments, the 900 payment is allowable. So in the means test, OP would get the IRS allowable amount for car allowance for his State.

Yes I agree with you 2manybills. The OP can take the IRS allowable amount for car allowance (this varies by state as you noted). And the OP can use the 900 payment under secured payments but I do want to add this will almost certainly be red flagged by the US Trustee. A $900 car payment will have a good chance of triggering a totality of circumstances objection by the US Trustee.

[2manybills]

It will sure depend on OP's district. In So. Cal., there are so many of those kinds of payments, I'm sure the UST couldn't keep up. But those are definitely the kinds of cases to have a good attorney on board.

Hope all is well with you BTS!!!

[backtoschool]

It will sure depend on OP's district. In So. Cal., there are so many of those kinds of payments, I'm sure the UST couldn't keep up. But those are definitely the kinds of cases to have a good attorney on board.

Hope all is well with you BTS!!!

It is good to see you on the board 2manybills! You and I were from the same bankruptcy "graduating class" last year. I am doing really well. I like to "pay it forward" and hang around and post. All the stuff I learned going through this might as well continue to be put to some use.

I hope things are going well with you too 2manybills!

[2manybills]

We are doing great BTS! I agree. I'm actually doing BK's on the side from my regular job as an office manager for a law firm. I do paperwork for pro se filers that can't afford an attorney. I agree with you, it's a good feeling to pay it forward for all the support we've received.

Glad you're well. I'll be seeing you on the boards.

[adina]

I am in Northern CA. I know it is a high car payment but the interest is 15% i owe 34k on it but i need a car

[backtoschool]

I am in Northern CA. I know it is a high car payment but the interest is 15% i owe 34k on it but i need a car

Luxury cars tend to be red flags for the US Trustee, especially if you are over the median. Is the car a "luxury" car? You are at double what is usually allowed that is why I am drawing attention to it. I think it will be a red flag. Can you trade the car in for a less expensive car before you file? If you are over the median, the less red flags you have, the easier time you will have of things.

[backtoschool]

I am in Northern CA. I know it is a high car payment but the interest is 15% i owe 34k on it but i need a car

In this thread the trustee has filed a motion to dismiss your chapter 13 due to your plan only being 7% payment.

http://www.bkforum.com/showthread.php?62412-Trustee-motion-to-dismiss-i-am-going-crazy&p=452662#post452662

Chapter 7 bk's are even more strict about expenses. If your expenses did not pass muster in a chapter 13, you are going to have the same issues in a chapter 7, only moreso, since you make over the median and you have assets.

I would consult with your attorney. I think your the car, along with the chapter 13 being dismissed, is going to make your chapter 7 case go before a US Trustee if you are able to pass the means test initially and file.

[adina]

Yes the attorney proposed paying unsecured 7% and in the 13 the car would be crammed down to 500 per month at 5% interest. I just reviewed my allowable deductions and it looks like there were some errors on the monthly amount. i took the means test and passed but i dont know i am waiting to find out what the attorney says. My unsecured debt is approx. 88k at 7%. at 100% payback i have the secured auto at 28k at 500 per month and my 25k in student loans and 22k in ca taxes. plus the trustee and the attorney i was just informed today by the attorney of additional expenses that can be claimed that were not included

[tcreegan]

Hello adina,

I know it is a high car payment but the interest is 15% i owe 34k on it but i need a car '

You need a car, just not this one. 15% on 34K for a car? This is an awful financial deal, even for an auto loan.....

Hope you can find something better!

Tom in Colo

[backtoschool]

Yes the attorney proposed paying unsecured 7% and in the 13 the car would be crammed down to 500 per month at 5% interest. I just reviewed my allowable deductions and it looks like there were some errors on the monthly amount. i took the means test and passed but i dont know i am waiting to find out what the attorney says. My unsecured debt is approx. 88k at 7%. at 100% payback i have the secured auto at 28k at 500 per month and my 25k in student loans and 22k in ca taxes. plus the trustee and the attorney i was just informed today by the attorney of additional expenses that can be claimed that were not included

You may have more expenses to include, but your car will be a big red flag for the US trustee. Any expenses over IRS standards for your area will draw unwanted attention from the US trustee if you are over the median. In many districts student loans cannot be counted as expenses.