Expert: Terry Leeders - 5/30/2008

Question
I heard that if someone does not qualify for chapter 7 because of too much income they might still be able to get chapter 7 because of excessive monthly expenses? Also, if a landlord in chapter 13 stops making payments on one of his rental house mortgages (which he does not get any rental income from) and consequently his monthly net income increases what will happen in general?  thanks

Answer
If you have greater expenses than allowed under the means test, you can petition the court to allow them based on special needs.  This is a high burden to prove that this is reasonable and necessary, and is a long shot. You should consider chapter 13 and pay back a portion of the debts, based on the chapter13 means test figures.  As for your second question, the property will go into foreclosure.  The means test calculates future payments due on mortgages, as well as all sources of income (and in this case, related mortgage expenses)