Health Insurance: 6 Month Average or Current Expense?

[qwerty64]

When calculating Health Insurance expense for the Means Test (and again on Schedule J) should you use a 6 month average or current expenditure?

Reason I ask is that I am going through divorce.

So my health insurance looking back 6 months would include spousal coverage and therefore, higher premiums. But, health insurance looking forward will be single coverage and therefore, lower premiums.

Which is proper? Look-back or look-ahead?

[StartinOver]

Are you certain you will not be required to carry health insurance on your spouse? When I got divorced, the judge forced my husband to keep me on his policy because I was at that time unemployed. I had to pay him for it, but if I had been slow to pay him, that wouldn't have mattered, he would not have been allowed to cancel that policy for at least a year.

[BROKEDED]

Well nothing is certain until you are divorced. How much difference would the change make?

[UghUghUgh]

I was told last 6 months determines the 6 months looking forward. Its a good thing for you that the past 6 months are higher. That is my understanding.

[daylate]

I was told last 6 months determines the 6 months looking forward. Its a good thing for you that the past 6 months are higher. That is my understanding.

The last 6 do not influence the looking forward. Let's say you were still paying all your cc's and mortgage so you couldn't afford insurance for the past 6 months. You file-you're discharged. You now have $X a month to spend on things like health insurance or whatever. Your Schedule J is a projection of what you will spend going forward.

back to OP-the thing that is puzzling to me and i don't know the answer to is if you file a joint bankruptcy do two Schedules I & j get filed? If so then I would assume that the joint filing would include both persons premiums as it pertains to the means test and each schedule J would include a single premium. if you file bankruptcy alone, that is where I'm a bit confused. Logic would say use the single-but the fact of the matter is you had the expense so I guess maybe you could include the whole thing.

[qwerty64]

I am borderline Chapter 7. Income above the median, but I will be paying my ex spousal support for the next 3 years which will effectively eliminate any disposable income for a Chpt 13 repayment plan. I will no longer maintain her health insurance (that's part of why I'm paying her spousal support).

So, the health insurance expense "averaged" over the past 6 months would help me qualify for 7. Projecting forward with a lower premium might kick my petition toward 13.

[tcreegan]

Hi qwerty,

In general the means-test is a 6-month lookback and Schedule J is projected post-BK expenses. (forward looking)

Sounds like the health insurance /w spouse gets deducted on the means-test, and the spousal support gets deducted on schedule J

....but I definitely wouldn't take my word for it, when you mix Bk and DV a good attorney is a necessity!!

Tom in Colo