New Policy RE: Using Mortgage Payments on Means Test?

[discouraged]

iT is SCARY, but I stopped paying mine 10 months before I filed. I was (and still am) on unemployment due to a job loss but it made no difference with the trustee. My bk went smoothly.

[chiwawa]

My current monthly income just barely below the median income (about $50). I pass the mean test using the expenses allowance for local and national standards for California state. By using this allowance I have less than $100 at the end of each month. I like to save some money for a rental but worried if I not pay mortgage before I file. I cannot deduct mortgage/rental expense on form 22A. It would disqualify me for CH7.
Thank you for the support.

[patty123]

Yes you are on the right track dear.

[ValleYum]

Yes you are on the right track dear.

Hi patty123 and welcome to the BK Forum!

I would just like to point out that unless you are updating a post with substantial new information or are the original poster with an update to their particular situation, it is somewhat frowned upon to "bump" threads that are several months old. You will find this to be true on most internet forums.

For example, prior to your post this morning, this thread had not been posted on in over 7 months and your post, while kind and encouraging, was not IMHO worthy of a thread bump. It just makes things harder to navigate in the forum and since laws and policies change so rapidly it is best to stick to commenting on the recent threads.

But, no big worries as it is easy to understand that sometimes we are so anxious to lend our support or knowledge to someone that we fail to notice the date of the thread. Just my observation and opinion.

This forum is loaded with great information. I would suggest reading the stickies posted in each sub-forum to get you off to a great start! Please do feel free to start a thread with any questions you may have about your situation or concerns - we are a great forum with great people. Hope your day is super!

[daytona]

My understanding and experience is the mortgage(s) are included in the means test. Just because you pass the means test does not mean the ttee cannot try to dismiss the case due to the "totality of the circumstances" which could include the fact that you have a large mortgage payment allowing you to pass the means test. Will they do it? Depends on the specific court and ttee. Just because the ttee might challenge, does not mean that they will win. You could have too much debt for a CH13, which could then try to force you into a CH11...but there is plenty of case law out there where even then, the judge will go ahead and allow a CH7 because of the burdens of a CH11 and the fact the creditors may still only get a few cents on the dollar.