re: "Necessary Taxes" on means test
Posted: Thu Apr 16, 2009 9:02 am
But here's where the problem occurs:
Let's say debtors had a mortgage payment and 3 dependents during the 6
months prior to filing. They withheld very little taxes, but what they
withheld was perfectly appropriate at the time. Now they can't afford the
mortgage payments, the house is foreclosed. One of their dependents gets
married or moves out. Then they file Chapter 7 (or come into your office
seeking to do so). When calculating the "necessary" taxes does one use
their circumstances on the expected date of filing, or for the greater part
of the last 6 months?
Let's assume their gross income stays the same (although I could certainly
posit more complex hypotheticals..)
If they withhold the same amount going forward they will be grossly
underwithholding and will end up with a large tax obligation. So the
necessary taxes as of the petition filing date is significantly higher than
in the prior 6 months.
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Mark J. Markus
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