To overtime or not =good or bad?

[rjl0206]

to all,

would just like to ask in everyones opinions as to overtime hours prior to filing? I work in a hospital, I did enjoy (if you can call it) many hours of overtime in the previous years but now with the economy and my states health care rap out (NJ) hospital closings, layoffs and MINIMAL to 0 overtime is the norm, I even took up 2 more jobs in smaller hospital as needed for some hours. My attorney pretty much advised me to work enough (preferably only my full time hours 40/wk)only to afford making it for the next 4 months before I file because they include overtime even though it isnt guaranteed and fluctuates leaving me with a higher DMI which can trend down at anytime because again, my overtime/per diem hours are NOT guaranteed work hours. will the trustee give me a hard time with this? I am constantly running scenario numbers through NOLO about my income and am on the verge of probably being able to qualify for chapter 7 IF I am only working minimal ot/full time hours. Would the trustee grill me for not being able to pull off more hours of overtime or per diem time? thanks all.

PS: going to stop paying cc's next month (haven't used any in the past 4 months) so those extra payments will keep me afloat without any OT until I file around June.

thanks all.

Ray

[optimistic1]

Absolutely not, how could the Trustee know your turning down hours?

Thats what I have been doing, whenever there is extra work, I pass it on to someone else to work Saturday. Otherwise, my DMI increases and that just benefits the creditors, not me.

I would stop paying creditors now, not next month, its just a waste of money.

Just be sure that your Schedules I and J are close to reflecting what the Means test calculates for your DMI.

But, keep in mind, if after filing a 13 and you start racking up lots of O/T and if these increases are enough to notify the Trustee, you will need to do so, but its all a numbers game.

The Trustee might just look at your tax returns as you file them each year, and if there is a big increase in pay, they will seek to modify your payment.

My best guesses.

[catleg]

Definitely stop paying now, run up the cards a little and cut back hours, shoot for a 7.

[woeisme]

No, you can't be forced to work overtime. in fact, you can't be forced to work at all! Many people file CH 7 because have lost their jobs, can't work. So not an issue.

Not sure what catleg meant about "run up the cards a little" but what you want to do is use the $ that would have gone to card payments for your budget with no overtime work if at all possible. DO NOT USE YOUR CREDIT CARDS in the meantime! Especially if you can swing a CH 7, don't want the hint of abuse of those creditors.

[catleg]

I meant it's safe to use the cards for necessities. I really think people are a little too paranoid about that. Either that or people are filing way too early. What is the worst that can happen? You get forced to pay for something that you needed and would have bought anyway?

Did you know it's against the law for an attorney to advise you to incur debt in anticpation of bankrupcty?
It is here

[woeisme]

I think most people advise potential filers not to use their cards, not even for necessities, in the months prior to their BK for a reason besides paranoia about adversarial motions by the creditors. The other reason is because if someone can't pay their bills on a month-to-month basis without using credit, then they don't have the budgeting skills (or income) to survive post-BK when they have no credit. It's a "practice" period of living credit-free, because that is what one must do post-BK to get a successful clean start. In this particular case, you might be right because the OP can work overtime post-BK to make up the shortfall experienced pre-BK, but most of the time one should live totally credit free in the months preceding BK to determine if BK will really help them get out and stay out of debt.