Deck 18: Means Testing Official Form 122A-2

Question 1

If the client did not pass the Means Test, and you proceed with completing Form 122A-2, taxes and insurance are included in the mortgage calculations.

Answer 1

True

Question 2

Future payments for Form 122A-2 are maxed out at

A) 36 months.
B) 60 months.
C) Time left on the mortgage.
D) None of the above.

Answer 2

60 months.

Question 3

If the client failed the Means Test initially, are escrowed mortgage payments listed together or separate?

A) Together.
B) Separate.
C) It doesn't matter as it will not affect the outcome.
D) Mortgages aren't considered for purposes of the Means Test.

Answer 3

Separate.

Question 4

If the debtor's income is below the state median, the debtor has passed the Means Test, and completing Form 122A-2 isn't required.

Question 5

Can a debtor claim IRS allowable expenses even if those expenses exceed the debtor's actual expense?

Question 6

Once a debtor passes the Means Test, Schedule I calculations are irrelevant.

Question 7

When and why does Form 122A-2 have to be completed?