HELP- What happens if your income is above the means test

[HLS]

I got an email that stated my income is above median from the means test what does that mean for me?

[justbroke]

For a Chapter 13, being over-the-median means you will be required to be in a 5-year plan.

[shipo]

Talk with your attorney (if you have one); as I understand it you have two basic options:

1. Figure out how to get more of your income exempted
2. File Chapter 13

[HLS]

My lawyer said to cancel all my overtime then submit new paystubs at the end of september so they can recalculate my income. Will increasing my federal withholding help or do they only look at the income before federal/state tax is taken out? Also will increasing my pretax 401k contributions help with reducing my income?

[justbroke]

Increasing your federal withholding will not help. The Trustees will use your prior 2-3 tax returns to determine your "actual" tax liability and adjust accordingly.

Increasing your 401(k) contributions may meet an objection. The objection will be because you, in anticipation of filing, adjusted and increased your contribution rate.

For the 401(k) contribution, there may be an argument, in a Chapter 13, that you are an older worker and that you need to save for retirement. If you are a "younger" worker, the argument may fall on deaf ears.