Question regarding the Means Test >>

[mesa777]

If I decide to file for BK in the next several months does the Means Test take into account a persons actual expenses and income outlay? Or is set a some sort of a limit?

I have problems paying my bills the way it is now... I make a little over $50K per year. Would I be able to still file for a Ch. 7 based on this??

I am VERY confused here.. Please respond!

[kiddles]

You'll have to compare your income (annualized income) to the median income for your state and family size. If you're income is under that income, you can file a chap 7.

If you are over that median, you have to take the means test - there are standard allowances for living expenses, and a little "wiggle room", so to speak, for folks who have an unusual situation and believ they can make a good argument for additional expenses. (My attorney says that doesn't happen very often!)

There are links around here somewhere to a means test calculator, that should give you an idea where you are.

[mesa777]

Another question reg. means test... IF I decide to move out of my home that I own, upside down HUGE, and move into an apartment, and say six months later file BK I assume that I am able to have the actual house payment added into the calculation for the means test even though I am paying lets say $900 a month for rent vs. a $1600+ mgt payment???? HELP!!!

[DontBother]

Another question reg. means test... IF I decide to move out of my home that I own, upside down HUGE, and move into an apartment, and say six months later file BK I assume that I am able to have the actual house payment added into the calculation for the means test even though I am paying lets say $900 a month for rent vs. a $1600+ mgt payment???? HELP!!!

That is one of the "grey areas" of the New Law. Several citations of Case Law say that you can include any payments that you are contractually responsible for as of the date of filing, regardless of your intention (surrender, reaff, etc). However, some areas (mine included) are rumored to NOT allow you to use the deduction for any debt that you're going to surrender. So in a nut shell, it depends on the local customs of your area. When you begin meeting with attorneys, be sure to bring this up to them.

[jp2861]

[QUOTE=kiddles;128426]You'll have to compare your income (annualized income) to the median income for your state and family size. If you're income is under that income, you can file a chap 7. QUOTE]

This is not exactly accurate. He may be under the median and qualify to progess to the next stage. But it doesn't mean he can automatically file a Ch 7.

Once the presumption of abuse is determined he'll need to make sure his I & J are documented accordingly to remain the Ch7 ballpark. He could be under the median and still have to file a Ch13. Part one (means test if needed) determines abuse. Part two (I & J) determine disposable income, which in turn dictates which Chapter to file.

Mesa: As far as limits go, take a look at the new limits for 1.1.08. Some categories now state that you can claim the entire maximum allowed, without being questioned. That verbiage wasn't written in stone anywhere I could find prior to the 1.1.08 schedules.

[mesa777]

Great, thanks for this information.. will be filing some sort of a BK here in the next six months or so.. want to pay payments on my recently used cash advances on my credit cards before I file... would like to avoid BK if possible however the chances do not look good in my favor.. thanks...