STATEMENT OF CURRENT MONTHLY INCOME – FORM B22i
Angela M. Scolforo, Trustee Staff Attorney, and H. David Cox, Esquire
December 1, 2007
I. Median Income
a. Line 16: Median Income Figures for Virginia as of 10/15/2007
i. One: $44,780
ii. Two: $59,423
(only figure to increase)
iii. Three: $67,788
iv. Four: $78,413
v. Five or more: add $6,900 for each additional person
II. Allowable Living Expenses
a. Line 24: National Standards as of 10/15/2007 – using income and family
size to set standard deduction:
These amounts already include school lunches, meals at
home or away, recreation and entertainment. (and per UST)
i. One:
ii.
iii.
iv.
v.
$621 IF income $3,334-$4,66 per month
$703 IF income $4,167-$5,833 per month
$916 IF income $5,823 and over per month
Two: $825 IF income $3,334-$4,66 per month
$904 IF income $4,167-$5,833 per month
$1,306 IF income $5,823 and over per month
Three: $937 IF income $3,334-$4,66 per month
$1,017 IF income $4,167-$5,833 per month
$1,368 IF income $5,823 and over per month
Four: $1,063 IF income $3,334-$4,66 per month
$1,203 IF income $4,167-$5,833 per month
$1,546 IF income $5,823 and over per month
Extra Taken for Each Person Over 4:
1. $193 IF $3,334-$4,66 per month
2. $204 IF income $4,167-$5,833
3. $216 IF income $5,823 and over
b. Line 24: National Standards as of 1/1/2008 -- using family size only
Expense
One Person
Two Persons
Three Persons
Four Persons
$270
$511
$615
$737
Housekeeping supplies
$28
$59
$61
$72
Apparel & services
$85
$150
$206
$239
Personal care products & services
$30
$53
$56
$64
Miscellaneous
$81
$152
$185
$219
$494
$925
$1,123
$1,331
Food
Total
More than four persons
For each additional person, add to four-person total allowance:
Additional Persons Amount
$246
III. Local Housing and Utilities
a. Effective 10/15/2007 - See Exhibit 1 attached hereto
i. Line 25A: first column of the chart based upon family size and
county
ii. Line 25B: second column of the chart based upon family size and
county – deduct the mortgage payment, as also shown on Line 47
b. Effective 1/1/2008 -- See Exhibit 2 attached hereto –
IV. Transportation Deductions
a. Line 27: Operating Expenses
i. Vehicle Operating Expense as of 10/15/2007
1. No Car: $203
2. One Car: $260
3. Two Cars: $343
4. Culpeper: ($299, $350, $433)
ii. Vehicle Operating Expense as of 1/01/2008
1. No Car: $163
2. One Car: $181
3. Two Cars: $362
4. Culpeper: ($208, $416)
b. Lines 28 and 29: Ownership Expenses
i. Vehicle Ownership Expense as of 10/15/2007
1. First Car: $471
2. Second Car: $332
ii. Vehicle Ownership Expense as of 1/01/2008
1. One Car: $478
2. Two Cars: $956 (show ½ this amount on Line 28 and ½ on Line 29)
V. Deductible Expenses –reasonable and necessary for health and welfare
and production of income of debtors and their dependents
a. Line 30: Taxes – actual tax expense owed over prior 6 months – 1/12th of
the prior year tax refunds received by debtors must be deducted from
amounts withheld on the pay advices so this amount shows actual tax
obligation –
b. Line 32: Life Insurance – can only take life insurance deduction for term
life insurance on the debtors’ life, not the whole life portion of policy
payment (and per UST)
c. Line 33: Child Support Expense Deduction – deduct for court-ordered
payments only -- do not include the arrearage amount because it comes
out on Line 49, so make sure you determine what portion, if any, of the
ordered support payment is for an arrearage – agreed to amounts for
which there is no order may be taken on Line 57
d. Line 35: Childcare Expense: actual expense for daycare, babysitting, or
preschool which amount must be documented with statement from the
caregiver
e. Line 36: Health Care Expense - this is the actual amount expended and
must be documented and justified carefully
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f.
g.
h.
i.
j.
k.
l.
i. Do not include health insurance or health savings plan amounts
here – use Line 39.
ii. effective 1/1/2008 there will be a standard deduction of $54 per
person under 65 years old and $144 per person 65 years old or
older
Line 37: Telecommunications Services – this amount should approximate
the deduction on J for necessary “cell phones, pagers, special long
distance, internet” - not a deduction for regular phone service, whether
that is a land or cell phone, because it is already included in Line 25.
Line 39: Health and Disability Insurance -- health and disability insurance
deduction for actual cost, probably same amount on Schedule J (and per
UST)
Line 42: Home Energy Costs – amount by which your actual cost exceeds
the IRS standards – must document this additional expense and the
justification for it -- there is no cap on this expense (and per UST)
Line 43: Deduction for Education Expense – this does NOT include
preschool or college expenses – this may include private or home
schooling expenses –
i. maximum deduction is $125 per child pursuant to Code
§707(b)(2)(A)(ii)(IV) (and per UST)
ii. See, In re Cleary, 357 B.R. 369 (Bankr. S.C. 2006)(allowing private
school expense in light of family’s sacrifice of other basic expenses
to fund private school tuition and strongly held religious convictions)
Line 44: Additional Food & Clothing Costs – amount by which your actual
cost exceeds the IRS standards – must document this additional expense
and the justification for it (i.e. – special dietary or medical needs) – there is
a 5% cap on this additional expense pursuant to Code §707(b)(2)(A)(ii)(I)
(and per UST)
Line 45: Charitable Expense Deduction – limited to 15% of gross income
– you should expect to demonstrate level of gifting in current and one (1)
prior year to support current expense
Lines 47 and 48: Deduction for Secured Debt Payments –
i. Pro rate the contractual payments over 60 months
ii. If debt payments exceed 60 months, use the monthly payments
iii. If interest rate is adjustable – use the rate on the filing date
iv. If loan balloons within 60 months, include 1/60th of the entire
v. Leased vehicle payments may not be deducted here
vi. Arrearage: Deduct 1/60th of the secured debt arrearage amounts
to be paid in the Plan – NOT on luxury items -- only on “primary
residence, motor vehicle, or other property necessary for the
support of the debtor and the debtor’s dependents” pursuant to
707(b)(2)(A)(iii)(II) (and per UST)
vii. Surrendered Collateral: you cannot take any deduction for
payments on property which will be surrendered See, In re Ball,
06-70154 (Bankr. W.D. VA 5/17/2006)
viii. Crammed Down Collateral: if you are valuing the collateral in the
Plan, you must deduct 1/60th of the total amount being paid on the
secured portion of the claim in the Plan, and not the contractual
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m.
n.
o.
p.
q.
amount owed on the filing date See, In re McPherson, 06-60243
(Bankr. W.D. VA 2006)
ix. Good Faith: the Code still contains a good faith analysis - “the
unsecured creditors are better off than they would be if the asset is
excluded and the monthly payments on the secured debt are added
into a monthly plan payment.” In re Hylton, 07-70320, page 12 fn 8
(Bankr. W.D. VA 8/22/07)
Line 49: Priority Debts -- deduction for 1/60th of priority tax, alimony and
child support payments in the Plan – be careful not to duplicate the
arrearage amounts which may be in court-ordered support payments on
Line 33.
Line 50: Trustee Commission – this should reflect the Trustee’s
commission on the actual monthly plan payment – currently 6.8%;
however, see the UST website referenced in the endnote below because
this figure changes regularly
Line 54: Child Support Income -- income shown on Line 7 for child
support may be deducted here to determine disposable income
Line 55: Qualified Retirement Deduction –
i. Includes expenses for retirement, 401K, etc -- actual contributions
ii. Includes 1/60th of the balance of debt to be repaid during the Plan
term, including interest
Line 57: Miscellaneous -- may be used for other expenses
i. Examples of expenses may be: extraordinary gas expense,
substantial change in employment, adjustments for extraordinary
circumstances, etc.
ii. Student loans may not be taken as a deduction for calculating
disposable income
iii. IRS has discretionary allowance of $100 per person plus $25 for
each family member, See, I.R.M. [5.15.1.10] (05-1-2004) – we will
not allow this deduction without documentation and justification
iv. All expenses must be “reasonably necessary to be expended … for
the maintenance or support of the debtor or a dependent of the
debtor” pursuant to §1325(b((2)
VI. Disposable Income
a. Line 59: amount which must be paid to unsecured non-priority claims and
attorney fees in the Plan
i
The opinions and policies expressed herein are those of Herbert L. Beskin, and Rebecca Connelly, the
Chapter 13 Trustees for the Western District of Virginia, as of this date in light of the cases decided and
the policies adapted from other jurisdictions. These policies may change as the case law develops.
Where these policies are supported or governed by the United States Trustee we have specified by
indicating “per the UST.”
The UST website for means testing information, policies, and income and expense figures, can be found
at: www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm. These figures change several times each year and
counsel should check the site regularly.
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