Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
The court really focuses on 2 things with your budget.
First: Monthly income minus normal monthly expenses should be close to zero
Second, the court looks to the Means Test. This is an analysis of the 6 months GROSS income before the case.
They match that up to the median income level for the household size
What state do you live in and how many people are in your household?
I know that I meet the means testing. What I am wondering about is if there is a certain amount above which my chapter 7 would go to a 13. In other words, if I have $150 net, should I be concerned?
Well, that depends on the amount of debt you have, and what percentage of the debt could be paid back with your disposable monthly income.
Is there like a test for that?
There is no set amount that would draw objection,
but the rule of thumb is if there is enough to pay back 10% of the debt over 5 years, then you should be in a ch13
Be sure to list all expenses that don't always occur each month too, pro -rate them
like car insurance, school expenses for kids, car maintnenace, home repairs etc.
Don't go crazy with these, but the court allows some since they are necessary
the closer to zero the better
be sure to include expenses for items you may reaffirm - furniture, jewelry, electronics etc. for your secured debts
also student loan payments too can be listed
There is no 'test' but I like to get my clients under $25 left at the end of the month to be safe
$150 x60 would pay back $9k of debt in a ch13, so, that could be too much disposable.
Of course, it's a case by case basis/totality of the circumstances.
Do you have any other questions?
Feel free to request me if you do! thanks and good luck to you
please click accept so Just answer can close the question and I get credit for answering. thanks!Terry
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