A Gainesville bankruptcy attorney will explain how step 4 of the means test works when the “priority claims” and “secured debt” are calculated.
Your Gainesville Bankruptcy Lawyer Will Help With Calculating the Monthly Average
Your Gainesville bankruptcy attorney will explain the calculation of the monthly average that has to be paid. The debt for 60 months will be determined and divided by 60. With secured debt, take the total amount that must be paid and divide it by 60. That will be the monthly payment. If there is a debt that extends beyond 60 months, the payment that is made per month is utilized. If it is less than 60 months, the total secured loan amount will still be divided by 60.
Facts Your Gainesville Bankruptcy Attorney Must Remember on Secured Debt
- For variable rates, the rate at the time of petition is applicable.
- With balloon payments within 60 months, the full amount must be calculated.
- If there are items classified as "luxury," they must be included.
- Don't add secured items if the debtor is surrendering it as collateral.
Contact an Experienced Gainesville Bankruptcy Attorney
If you have questions about means test step 4 and how monthly payments are calculated, a Gainesville bankruptcy lawyer can help. Call Jeff Childers at 866-996-6104 today.