If Form 22C shows a negative disposable income, do I have to instead pay secured debts under the 5 yr plan??

Is there some other reason you are in a chapter 13? Tax problems, behind on mortgage payments? If your disposable income is in negative territory on the means test, there should be no presumption of abuse. Means test is just one prong of the chapter 13 analysis. Under the good faith analysis that's subtracting your schedule J expenses from your schedule I income, is there an excess of income? If so that would require a chapter 13. I have found that a lot of lawyers do not fully understand the means test. Those routinely refer the cases to me for Chapter 13, and I wind up doing a Chapter 7 for the client. You need to really sit down with your attorney and have him explain exactly why he put you in a Chapter 13. I fear that you do not have a full understanding of the impact of the means test on a chapter 7 or 13. It all sounds really odd.

Let me supplement Attorney Bolena's excellant response. He is right, the means test is just one test There is also the good faith test. Take your J expenses and subtract from your net income on I. Is there a surplus of funds? If not, I would look more closely at chapteer 7. But, lets say there is a surplus, of $175.00. A presumption of an abusive filing is created whenever the surplus is greater than $167.00 a month. Now, that is just a presumption. It CAN be rebutted. But the burden will be on you to show that under the facts and figures you are just getting caught up in a number issue and that a Chapter 7 is not abusive. Here is an interesting observation> Will it be so terrible for you to be in a Chapteer 13? You are going to have to pay the secured debt anyway, whether directly or through the plan. I can think of one problem, and that is having to pay the trustee's fees. But I have the overall feeling that a closer examination is in order. If the means test shows no presumption of abuse, then you should be able to file under Chapter 7. Good luck.