Lease Purchase Option in Bankruptcy

[jdnoye]

I have income of 80,000 dollars per year and am about to file, our attorney has stated that we will be close to failing the means test, even though the state median income is 60,000 (family 0f 3 Florida) I have an opportunity to get into a lease purchase option on a new home with a payment of 1500 dollars per month for 2 years. Will I be able to use the 1500 as a housing expense for the means test or will I be forced to use the lower IRS standard? Thanks-

[lrprn]

Will I be able to use the 1500 as a housing expense for the means test or will I be forced to use the lower IRS standard?

You must use the lower IRS housing standard on your Means Test but as long as the $1500/month is a reasonable rent for your area and family size, you can probably use the actual $1500/month value on your Schedules.

Some bk districts use the Means Test to determine disposable income and others use the Schedules. There's no consistency regarding this across the country (thanks, 2005 Congress, for passing such a mess of a bankruptcy law )

If you haven't had your 3-4 free initial consultations with experienced local bk lawyers in your area yet, it's time to start calling to set those up. Ask all the lawyers you interview this same question. You'll not only learn if this approach is possible, you'll find out how it will impact your filing along with all kinds of other useful information as well.

[jdnoye]

Thanks- I have heard that if it is a mortgage then you can use that expense instead of the local standard, since a lease purchase is similar to a rent to own scenario, do you know if that might be allowed on the means test? I am obviously new to this but the 1500 will be allowable if I am forced to file a 13? (On my schedules)