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Failing the Means Test

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Failing the Means Test

I got a call from my lawyers office saying i will need to file a Chapter 13 and not a 7 they are saying im failing the means test i need to know if there is anything i can do i have about 40k in debt that is including my current car payment of $487 a month its not a nice car just a bad loan i pay $500 in rent for everything to my brother and about $130 in insurance and $150 for my cell phone the problem is my brother and his GF just had a baby and are not going to want me there much sooner so most apts in my area run about $700 to $800 plus utilities they are telling me my chapter 13 payment would be $495 is there any way for the court to take into account i will be moving and my bills will be going up to allow the chapter 7 i also want to surrender my current auto loan so that is not helping my case i bring home about $2200 a month any info would be great im so lost in this process idk if my lawyer is just trying to push the 13 so he makes more money as i just now saw in some of his reviews that he does that i have an appt with another lawyer to see what he has to say next week

 

thanks

Message 1 of 13
12 REPLIES 12
Community Leader
Senior Contributor

Re: Failing the Means Test

I think it’s always best to talk with a few attorneys as they offer free consultations.

I would imagine that the only thing that matters is what you are paying now ,not what you “may” be paying in the future. Are you sure you listed all your expenses?

But yes get a few consults and see what other lawyers advise you to do..
EXP 763 TU 793 EQ 734
Message 2 of 13
Super Contributor

Re: Failing the Means Test

Form 122A-1. The first means test form, Chapter 7 Statement of Your Current Monthly Income (Form 122A-1), determines whether your income is below the median income for your state. If it is, you qualify for a Chapter 7 bankruptcy and don’t need to fill out the other two forms. Form 122A-2 or Form 122A-1Supp for Chap13 or Military. You make 22k a year and failed the means test? What state is this? Fl is 1 Member Household - $41,334.00

Sounds like another lawyer like @Jnbmom said is in order. Google your states means test requirements. It will show the max before you have to file a 13. Thats nuts!





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 3 of 13

Re: Failing the Means Test

my take home each month is $2200 my gross is $36k a year they are telling me i do not have enfough bills and too much disposable income for a chapter 7 so idk if i will have to move out and then refile but idk if i can wait 6 months and carry that car payment and my rent that long plus come up with my rent deposit with all of this  my current bills not including rent come to about $927 each month

Message 4 of 13
Super Contributor

Re: Failing the Means Test

What state do you live in?





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 5 of 13

Re: Failing the Means Test

Ohio

Message 6 of 13
Super Contributor

Re: Failing the Means Test

For cases filed after May 1, 2019, the median income for a single earner in Ohio is $49,624 per year. For larger households, it'll be more. Add up your income over the last six months and divide it by six. If the result is less than the monthly median income on the means test, you qualify for Chapter 7 bankruptcy. Or $4,135 a month.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 7 of 13
Community Leader
Senior Contributor

Re: Failing the Means Test


@FireMedic1 wrote:

For cases filed after May 1, 2019, the median income for a single earner in Ohio is $49,624 per year. For larger households, it'll be more. Add up your income over the last six months and divide it by six. If the result is less than the monthly median income on the means test, you qualify for Chapter 7 bankruptcy. Or $4,135 a month.


@Pillsbury1109   Please seek other consults! !! As mentioned above your income doesn't even seem remotely close for a 13. Not all lawyers are reputable,  please seek other opinions and run fast and hard from this one!!!

 

Good information @FireMedic1 

EXP 763 TU 793 EQ 734
Message 8 of 13
Community Leader
Super Contributor

Re: Failing the Means Test

@Pillsbury1109 ...

 

I would agree with and listen to @Jnbmom and @FireMedic1 ...


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 9 of 13

Re: Failing the Means Test

Thank you all for the info I ran as fast as I could met with the other lawyer she choked when I told her the other guys said I was only eligible for a 13 once she had all my info I guess she is aware of the other lawyer he only charges $700 for a chapter 7 but does kind of a bait and switch tells everyone you can get a 7 then says oh only a chapter 13 I called the old office to cancel my appt and they said good luck finding any office to do a chapter 7 with income like that 😂🤣
Message 10 of 13
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