analysis of the means test

[LostOne0069]

We lived in Utah and we moved to NJ on November 15... the attorney I spoke with said that we had to wait until Feb. 15 to file as a NJ resident... prior to that we'd have to file in UT. I asked about the median income charts and he said that it goes by where you file... as for the exemptions... they can take anything they want, I really don't have anything of any value... as I mentioned above, the SUV and the boat are both at or below their loan values... we sold our home december 14 (cleared $3,006 after costs) and I sold my motorcycle a few weeks back for $5,500... all proceeds of these went to either moving expenses, living expenses... or making payments to creditors... Other than these things, what are they likely to want to take? I mean, our TV was $600 when we bought it new... 5 years ago... All of our furniture (couches, beds etc) are all 5+ years old and show their age (remember, we have 4 kids! 3 of which are boys!)

The only thing that I have that MIGHT be worth something would be some woodworking tools I have... all of which are 3+ years old and most of which were $500 or less at purchase... but 1 was $1000 new and one was $1600 new.... none of them would get much on the used market... especially at auction.

I have no idea how they determine what they're going to take... I mean, do they come to the house with the list of exemptions and go through it taking an inventory and take everything that's not exempt... no matter what it's worth?

[JimH]

One gray area for the new laws-the time frame for living in a state to use its exemptions has been extended to 2 years, but I don't know if that will be true for the median income.

hmmm.... good question. That is a grey area in a way but when looking over the new code this is all related to the allowed exemptions. The only timing mentioned in the means test portion relates to income earned over the previous six months.

[bkfiler]

why would they be taking anything?

did you do a list of what you own and line it up against an exemption list.

the trustee can take anything that is not covered by the exemption. if its not worth it to him then he wont take it.

[bkfiler]

i would agree. from what ive read so far the 2 year goes hand in hand with the exemption list. expenses go by current living location because that is what people area actually paying (yeah right lol) at the time, since they need to determine your current disposable income.

[StaciMM]

Good logic! It just occured to me that the topic of median income & relocating to a new state hasn't been mentioned.

i would agree. from what ive read so far the 2 year goes hand in hand with the exemption list. expenses go by current living location because that is what people area actually paying (yeah right lol) at the time, since they need to determine your current disposable income.

[JimH]

In a ch 7 you have to list everything but it doesn't mean the trustee will bother auctioning off items that are not exempt. If they would bring a marginal offer at auction, he may pass on them or more likely let you buy them back out of the bk estate.

[SinkingFast]

Lost,.......... Here's a link for you with a helpful packet of info.

http://www.bankruptcyaction.com/application.htm

There's even a room by room inventory sheet so you can go thru and itemize your furniture and such.

You aren't the only one caught in the move deal. We are too. Hubby got laid off. Found a job 6-7 months later outa state. He moved immediately, last January, and we moved here in August. We've been in the new state long enough to use the new state's median income for the Means Test, but still have to use the old state's exemptions. Be sure and research your old state. You might get a pleasant surprise like I found yesterday. Our old state, Missouri, just updated their BK exemptions last August and it finally showed up on the internet. WoooHooo!! We aren't entitled to the homestead exemption because we are going to surrender the house. At the current, reduced asking price, we are at break even on costs to sell and mortgage. Why sell when we can just give it back and save ourselves $$ in water, electric, and mowing bills that will come in the spring. But the vehicle exemption, personal property exemptions, and others increased. And all those will help us immensely.

[SinkingFast]

In a ch 7 you have to list everything but it doesn't mean the trustee will bother auctioning off items that are not exempt. If they would bring a marginal offer at auction, he may pass on them or more likely let you buy them back out of the bk estate.

We are pondering those types of things. Hubby's folks gave us his piano years ago and we've lugged it around the country ever since. Several moves. His Mom bought it new in 1960 so it's 45 years old. It's in decent shape but Hubby doesn't play anymore. We were wondering about just letting it go. Not exempting the piano and using those $$ toward something else we may have that we'd much rather keep.