top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Means Test

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Means Test

    Hi everyone, long time since I've been here, however I'm helping out a friend and she has an appointment with a lawyer next week, however does anyone know when they do the means test, it's her gross income correct and can she deducted things like federal/local taxes and the amount she pays out of her paychecks for health insurance?
    Filed August 09, all payments made as of July 12th, 2013.....Waiting on final audit and discharge!

    #2
    The means test uses gross income for the 6 months preceding the month of filing to determine if the debtors is below median for the first part of the means test. In the second part of the means test, health insurance and taxes are allowed as deductions when calculating disposible income. Keep in mind that the tax deduction is for the actual tax liability which may or may not be the same as the amount withheld.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


      #3
      LitR is correct. To elaborate on one small part, it's the last 6 months income means full calendar months. So it doesn't include the month you are filing in. E.g., if your friend filed today (October 30), the last six months would be what she made in April, May, June, July, August, and September, so it wouldn't include anything she made in October. Might be useful for her to know if she needs income to drop off to meet the means test. E.g., if she made a lot of money in April, but very little in October, she could wait until November 3 to file, that way the 6 months income would not include any April income.

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X