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Ask John A. Flynn, Esq. Your Own Question
John A. Flynn, Esq.
John A. Flynn, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 202
Experience:  14 Years Experience in Bankruptcy - Mid-South Super Lawyer
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My monthly income is 600 dollars a month over the allowable

Customer Question

My monthly income is 600 dollars a month over the allowable income for a Chapter 7. How can i still qualify for a Chapter 7
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  John A. Flynn, Esq. replied 1 year ago.
You could be asking one of two questions. Either you're saying that your schedule I (income) is $600 higher than your Schedule J (expenses) in which case you have disposable income in that amount, or, as I suspect, you might be asking about the means test. If you're concerned that your past 6 months of income averages $600 per month higher than your State's median income for a household of your size, then the answer is that once you complete the means test, including taking all deductions, you would almost certainly qualify. If you are talking about disposable income on Schedules I and J however, you should probably scrutinize your expenses more closely and make sure you've accounted for absolutely everything you spend money on.
Customer: replied 1 year ago.
Thanks for your response. I was referring to the means test. In my state the median income for a one person is 4,436. My six month average is 5,000. So basically I would need to have expenses each month that I could deduct that would take me below my states median average?
Expert:  John A. Flynn, Esq. replied 1 year ago.
Not really expenses per se. There are certain deductions you can take on the means test. These would include taxes, deductions for your secured debt payments (house, vehicle, etc), a "vehicle ownership expense" deduction which is a set amount based upon whether you have a vehicle with a note payment on it. I cannot ever remember seeing someone who was only $600 above the median who wasn't well below the median by the time you complete the deductions on the means test. In my opinion though, you should really seek the advice of a bankruptcy attorney in your area to determine this.
Customer: replied 1 year ago.
Okay. So is food, Gas, etc, apart of the eligible deduction in the means test?
Expert:  John A. Flynn, Esq. replied 1 year ago.
Yes, but the means test includes IRS standard amounts for these. For most categories it is not based on real figures from your life.
Expert:  John A. Flynn, Esq. replied 1 year ago.
If you could please leave feedback for this question, that would be greatly appreciated. Thank you.
Customer: replied 1 year ago.
Okay. Will a bankruptcy court order prevent a drivers liscense from being suspended due to being in a accident with no insurance. In Washington, it says theyll suspend your liscense if they fill a judgment may be entered against you. Cant bankruptcy prevent this because the automatic stay will prevent a lawsuit against you.
Expert:  John A. Flynn, Esq. replied 1 year ago.
No, the automatic stay does not prevent license suspension.
Customer: replied 1 year ago.
I was told by a attorney that the department of Licensing wont suspend your liscense if there notified you filed bankruptcy
Expert:  John A. Flynn, Esq. replied 1 year ago.
They may have a policy where they choose to do that, but it's not because they have to.
Expert:  John A. Flynn, Esq. replied 1 year ago.
If you could please leave feedback for this question, that would be greatly appreciated. Thank you.