ust adjusting housing costs

[Lajazz947]

if my standard is much lower than my actual mortgage payment can the UST adjust this?

After exemptions I have VERY little if any equity left.

If I am allowed to use the actual mortgage payment and I use the IRS guidelines in every other item I think I pass the means test.

Any help will be appreciated.

[Help!]

Yes, they certainly can. That's not to say they will, but there are plenty of examples of cases out there where the UST has done it. Here's one that comes to mind:

http://207.41.19.15/Web/bap.nsf/0/8774259156FAEE5688256BE600804E52/?opendocument

And that was under the old, more "lenient" law.

If a UST has it in their mind that a case is abusive and they are hell-bent on finding a way to dismiss it, they are unstoppable (at least until the debtor files an objection to the motion to dismiss and gets their case in front of a judge).

[Help!]

This is a better example since the UST goes directly after the housing expense specifically:

http://www.ca8.uscourts.gov/opndir/04/10/046016P.pdf.

[Lajazz947]

Interesting.

It is always good to know what has happened in the past.

I read the case and noticed however that the UST lost the case on appeal and the objection was based more on monthly expenses, cars, eating out etc, not on a home mortgage so that gives me more hope.

If anyone else has experience with this please share.

Thanks.

[Help!]

Interesting.

It is always good to know what has happened in the past.

I read the case and noticed however that the UST lost the case on appeal and the objection was based more on monthly expenses, cars, eating out etc, not on a home mortgage so that gives me more hope.

If anyone else has experience with this please share.

Thanks.

The UST's motion to dismiss was upheld on the second one. That was a pretty large mortgage payment though...

[Lajazz947]

Thanks, I guess that the cases are just that, case by case.

I have read elsewhere that this is rare but as you state, possible.

Oh well, I will just see what happens. My other question is :

When this happens does the UST look to impose the IRS guidelines or do they merely try to reduce your mortgage payment in the means test. If you know what I "mean".

[laurannm]

One thing to keep in mind too is that the laws have changed significantly since these cases were heard (for example the means test did not exist prior to 10/05) so it can sometimes be difficult to directly correlate "old law" cases to "new law" scenarios, particularly when it comes the means test

That being said, are you working with an attorney? They could best answer these questions for you. Or you could get an account on Pacer (just be careful about racking up charges) and poke around recent cases in your area to get a feel of what the housing expenses were for people who have filed (especially above-median debtors) and whether or not the UST had any issues with them.

[Help!]

Thanks, I guess that the cases are just that, case by case.

I have read elsewhere that this is rare but as you state, possible.

Oh well, I will just see what happens. My other question is :

When this happens does the UST look to impose the IRS guidelines or do they merely try to reduce your mortgage payment in the means test. If you know what I "mean".

The UST in our district doesn't try to reduce housing costs, just uses them as a reason to dismiss/convert. This is why it's so important to have open communication with them - sometimes people don't know where the UST is going with their case until they see the motion to dismiss.