Pass the means test and *STILL* have to file Chapter 13?!?

[stephenm]

Ah, that is why she keeps getting concerned my Schedule I and J shows me with $144 disposable income. I thought since I fell below the $187 AND the 25% we were ok but if the UST shows I'm abusive then I am in a payment plan of at $6000 if my disposable income isn't below $100 a month.

[laurannm]

to quote HHM on the 25% issue

I think you guys are misunderstanding the 25% requirement.

Debtor's are NOT required to payback 25% of their unsecured debt in a chapter 13. The 25% issue arises under 707(b)(2)(A)(i)(I), which presumes a chapter 7 filing is abusive (and therefore not subject to discharge) IF the debtor can pay "at least" $6,000 OR 25% of the debtor's non-priority unsecured claims in 60 months.

Right, so I was talking about the secondary verification on the means test. If your means test result shows a result of more than $6,575 but less than $10,950 (over the course of 5 years, or between $110 and $182.50\month), you then take 25% of your total unsecured debt. If 25% of your unsecured debt is greater than your disposable income over 5 years, then you pass the means test.

So lets say you show 5-year disposable income of $8000, and your total unsecured debt is $100k. 25% of that is 25k, which is more than $6k, so you pass the means test