SUP-RAP-63/2011 “(…)

Next is a Review of Total Deductions Allowed under § 707(b)(2). If you click on a line item to review the underlying data, remember you can click on Return to Previous Page to come back to this page.

Lines 48-52: Initial Presumption Determination

Clicking on the Next button takes you to the Initial Presumption Determination page. The totals calculated by the Means Test Wizard are displayed with a message at the bottom. A green message tells you why a presumption does not arise. A red message indicates a presumption of abuse and tells you why.

Lines 53-55: Secondary Presumption Determination

Next you’ll see a Secondary Presumption Determination Screen. If no presumption arises, the Next button will take you to where you can print the form. If a presumption does arise, you get one more chance!

Lines 56: Other Expenses

If the presumption does not arise, you will still have an option to enter the Other Expenses on Line 56 of Form 22A. Line 56 is not included in the calculations in the form, but can be used to list other expense you feel you need to show.

After you have stepped (or clicked) through the wizard, you’ll be able to print the form with all the numbers entered. If you have jumped around or left out required

information, you may see an error message (or two) on the Print Form page. Click on each error message and the Wizard will take you to the screen for the corresponding line number, where you can enter missing data, or address the problem.

Form 22B—Chapter 11 Statement of Current Monthly Income—Inside

a Case

Whether you created a case and clicked on the MT button, or created a case from a Means Test created outside a case, to edit that means test inside a case, you’ll still click on the MT button. If you have not created the case from the means test, clicking on that button will create a means test using data in your case with a couple of small wrinkles. The Form 22B does not reflect future debt payments, only income, so preparing this form inside a case is almost exactly the same as preparing it outside a case.

When you click on the MT button, the Wizard will bring up the Basic Client Information screen. The zip code you entered for your client will be filled in as well as the state from the jurisdiction in your case. You can click on the Get State and County button and BankruptcyPRO® will look up that information for you. Or you can select it manually. Your client’s name and social security number will be entered from the case information.

And the form will be set to match the chapter you set in your case. This form is filed in conjunction with Schedules I & J from your case.

Click on the Next button to enter more basic client information. Select the State and County and household size. For this example, choose a household size of 2. Choose the number of vehicles operated and the number of vehicles for which an

ownership/lease expense is claimed (i.e., are they making payments on the vehicle or lease?) For this example, choose 2 cars operated and 2 cars for the ownership/lease question.

At the bottom choose the Form 22 which is applicable. In this sample, it will be a Chapter 11: Statement of Current Monthly Income. This form applies to individuals (as opposed to corporations) filing Chapter 11. Click Next.

Line 1: Marital/Filing Status.

This is where you indicate whether your client is unmarried, married not filing jointly with declaration of separate households, married not filing jointly without declaration of separate households, or married filing jointly (for Chapter 7); unmarried, married not filing jointly or married filing jointly (for Chapter 11) or married or unmarried (for

Chapter 13). The declaration of separate households language is automatically printed on the form when you make that selection in a Chapter 7. Choose married not filing jointly. Then click on Print Forms at the left. You’ll probably see None in the problems box. You haven’t really entered enough information to have a problem yet. Click on the Print Form button below the problems box. Exit the preview by clicking on the Exit button at the top of the screen. Then Click on the Goto Line# button. Hold your mouse over the Chapter 11 menu that pops up and move your mouse to the right to bring up the submenus. You’ll see there is only one part to this form. Under the Part I menu, you’ll see a notation 1-11. Those are line numbers. Move your mouse to the right over that reference to get the submenus for that item. Then click on 1 – Marital/Filing Status. You should be back where you were. The Goto Line# button is a quick way to make corrections on a form when you know what line number’s data needs to be modified. So, you see there are many ways to get around in the maze called the Means Test. Now, for this example, change your Marital/Filing Status selection to Married, Filing Jointly and click on Next.

Line 2: Gross Wages, Salary, Tips, Bonuses, Overtime, Commissions

We’ll go through the Income questions one by one for purposes of this example, but you can skip around or leave a question blank if it doesn’t apply to your client, or enter items for the spouse but not the debtor.

There is a place to enter items for each spouse. (If your debtor is unmarried, you’ll see only one box.) Click on the new button under the Debtor box. The type of income is displayed at the top of the window. Add a description for the source of income. This is your notation. Enter the gross monthly amounts for that job for the Debtor. If they are

all the same, before you press enter, click on the Copy Current Amount Forward button to save some typing time. The Wizard will calculate the average monthly amount to be used on the form. Enter the spouse’s income the same way in the Spouse section. You can add as many jobs as you need to.

Another, more precise, way to enter the income is to use the Pay Stub Calculator. To take advantage of this feature, make sure the Check Pay Stub Details box is checked when you add a source of income. Click New to access the pay stub calculator. You’ll see six months worth of calendars (the dates will correspond with the six months prior to the projected filing date in the Means Test Calculator. If you need to adjust your filing date due to fluctuating income, you can change this date at the list on the Start button in the Means Test Wizard, Edit Client Information, and change the Projected filing date. Click on the dates on the calendar of the identical pay stubs (or right click on the calculator and see some other date entry options). Yellow dots will appear to indicate that the Means Test Wizard will replicate the paystub for each date selected. Then enter the appropriate amounts in the deductions boxes on the left side. To enter

additional deductions that should be reported on your Means Test, click on the plus sign button below the other deductions box. Type your internal description in the first

column. Tab to the second column to enter an amount. Tab to the third column to specify on which line the deduction should be reported on the means test. Click in the “cell” to see a down arrow with a list of categories for the Form 22 Line Assignment. They are sorted by line number even though the numbers are not displayed. If you know you want to send a deduction to the line relating to life insurance, you can just start typing Life Insurance and the selection will appear. You can click the checkmark to post the deduction, or tab again and press your down arrow key to post it an add

another deduction. These items will be repeated for each date you select for that pay stub. If you have another pay stub with the same items and differing amounts for the deductions, you can save the original pay stub, by clicking on the checkmark to make sure the additional deductions are posted, then on the OK button to save the pay stub. Then clone that pay stub to create another with the same deduction items, and just change the amounts. The pay stub calculator will total the deduction amounts and divide them as necessary to pass them to the appropriate lines on the Means Test Form. You can enter as many pay stubs as necessary. Even though you may not reflect deductions in the Chapter 11 means test, it is probably a good idea to enter them in the paystub calculator if you have them. That way, if you need to convert the case to a Chapter 7, you will have already entered the data.

NOTE: Changing the dates and amounts actually changes the pay stub information. Be sure to clone a pay stub to create an additional one.

Line 3: Income from the Operation of a Business, Profession or Farm

When you click on the New button, you can again assign a name to this income. You’re also presented with boxes for gross receipts and expenses for each of the past six months. Enter the amounts (income and expenses) for each month. The wizard will deduct the expenses from the income and calculate a 6-month average for the form. Again, you can enter as many of these items as necessary. Note: The Official Form

states “Do not enter a number less than zero.” If the expenses are greater than the gross receipts, the number entered on the form will be a zero.

Line 4: Rent and Other Real Property Income

When you click on the New button, you can again assign a name to this income. You’re also presented with boxes for gross receipts and expenses for each of the past six months. Enter the amounts (income and expenses) for each month. The wizard will deduct the expenses from the income and calculate a 6-month average for the form. Again, you can enter as many of these items as necessary.

Line 5: Interest, Dividends and Royalties

Click on Next to go to Line 5. Interest, Dividends and Royalties. When you click on the New button, you can again assign a name to this income. In this dialog, you’ll enter one amount per month. Again, you can enter as many of these items as necessary.

Line 6: Pension and Retirement Income

Click on Next to go to Line 6. Pension and Retirement Income. When you click on the New button, you can again assign a name to this income. In this dialog, you’ll enter one amount per month. Again, you can enter as many of these items as necessary.

Line 7: Regular Contributions to the Household Expenses Including Child or Spousal Support

Click on Next to go to Line 7. Regular Contributions to the Household Expenses

Including Child or Spousal Support. The forms state ”Do not include contributions from the debtor’s spouse if Column B is completed.” When you click on the New button, you can again assign a name to this income. In this dialog, you’ll enter one amount per month. Again, you can enter as many of these items as necessary.

Line 8: Unemployment Compensation

Click on Next to go to Line 8. Unemployment Compensation. The form states ”Enter the amount in Column A and, if applicable, Column B. However, if you contend that unemployment compensation received by you or your spouse was a benefit under the Social Security Act, do not list the amount of such compensation in Column A or B, but instead state the amount in the space below.” BankruptcyPRO®’s Means Test Wizard provides you with separate boxes to enter the amounts you contend are benefits under the Social Security Act. These amounts will then print on the form, but will not be included in the income totals subject to the Means Test.

Line 9: Income from All Other Sources

Click on Next to go to Line 9. Income from All Other Sources. The form states ”Do not include any benefits received under the Social Security Act or payments received as a

victim of a war crime, crime against humanity, or as a victim of international or domestic terrorism.” Enter these items as appropriate. If there are more than two items listed, BankruptcyPRO® will generate a continuation page and list them there while entering the totals in the appropriate box on the form.

Line 10: Subtotal of Current Monthly Income and Line 11: Total Current Monthly Income

Clicking on Next from this dialog, gives you a Current Monthly Income review. Lines 11 and 12 of the Form 22A are displayed. As you review the entries on this page, move your mouse over the items. The cursor will change to a hand. This means you can click on the item and the Wizard will take you to the corresponding question for editing, adding or deleting responses. Remember to click on the Return to Previous Page button to come back to the Summary. (Hint: You can also use the Goto Line button if you wish.)

After you have stepped (or clicked) through the wizard, you’ll be able to print the form with all the numbers entered. If you have jumped around or left out required

information, you may see an error message (or two) on the Print Form page. Click on each error message and the Wizard will take you to the screen for the corresponding line number, where you can enter missing data, or address the problem.

Form 22C, Statement of Current Monthly Income and

Calculation of Commitment Period and Disposable Income

(Chapter 13)

Chapter 13 Means Test

Whether you created a case and clicked on the MT button, or created a case from a Means Test created outside a case, to edit that means test inside a case, you’ll still click on the MT button. If you have not created the case from the means test, clicking on that button will create a means test using data in your case with a couple of small wrinkles. This is important so we’ll mention it here and again in the line number sequence. The Future Debt payment information for the Means Test inside a case is entered on a new Form 22 tab in the secured or priority creditors in the case. Make sure you enter the information about secured and priority creditors on that tab, as the Means Test inside a case is updated from that information. If you make the changes in the actual Means Test inside a case and have not made the changes in the creditors, your Means Test changes will be overwritten with the “empty” information from the creditor unless you check the “This is a Means Test Only Creditor box in the Means Test. So be sure you enter it on the tab in the creditor.

Now, having made that detour, we’ll go back to the beginning of the Means Test inside a case. This discussion is from the perspective that you created the case first, then decided to create a Means Test inside that case.

When you click on the MT button, the Wizard will bring up the Basic Client Information screen. The zip code you entered for your client will be filled in as well as the state from the jurisdiction in your case. You can click on the Get State and County button and BankruptcyPRO® will look up that information for you. Or you can select it manually. Your client’s name and social security number will be entered from the case information. And the form will be set to match the chapter you set in your case. You’ll need to set the household size and the vehicle information. You can change the means test information to be different from that in your case, but you will see warnings frequently about the “mismatches.” Before clicking on the button to Update all Form 22 data from Case Data, go to the secured and priority creditors already in your case. To do this you’ll need to exit the Means Test Wizard. Anything you’ve changed in the Means Test Wizard will be saved.

Go to the Creditors in the case (the blue button with the “C”). Double click on one of the secured creditors to go into the information for that creditor. You’ll see a new tab for Form 22. If the case is a Chapter 7, the tab will say Form 22A; if it’s a Chapter 11, the tab will say Form 22B, and if the case is a Chapter 13, the tab will say Form 22C. You don’t really need to remember the letters, BankruptcyPRO® will take care of that for you. You do really need to remember to go to this tab to have the data for the secured creditors update correctly to the Means Test Wizard.

On the Form 22 tab, you’ll check a box to include the creditor in the Means Test. Unchecking this box will remove a creditor from the means test if you update using the Means Test Wizard. Then select a button according to where the creditor should be included in the Means Test (i.e., Mortgage, Vehicle 1, Vehicle 2, Other). This data all goes to the Future Debt Payment information on the Means Test (Line 47 in a

Chapter 13). The mortgage and vehicle amounts are then compared to the allowances for those items. As we understand it, the form will use the higher of the two amounts (allowance or actual payments). These payment amounts are arrived at by taking the amount of the note contractually due in the next 60 months and then dividing that amount by 60. Mortgage Arrearage is entered on the Form 22 tab in the mortgage creditor. The tab is not visible in the arrearage creditor.

As you make changes in creditors, or try out a new Means Test Chapter, you’ll be notified that the Means Test does not match your case data. Ultimately the case and the Means Test should probably match before filing, but you can work scenarios by answering No when asked if you wish to update. Click on the Update button to see the messages. The message warns you that data in the means test will be overwritten from your case data and asks if you wish to continue.

The Wizard will also look for changes in the secured and priority creditors in the case, changes to the jurisdiction, and changes to the number of debtors (individual/joint). If you have entered the names and Social Security numbers for the debtors, they will be brought into the Means Test for you. The date prepared defaults to the current date.