Need Advice - how long can I wait to file?

[bxpete]

We've been waiting for the past 6 months to file a 13 (had to wait for a large bonus to fall off the income test). Now it's finally time and we're just about ready to file, but I was just informed yesterday that my pay will be cut by about $600 a month starting next payday. It's a company-wide pay reduction.

So now it looks like I need to start the 6-month clock all over again and wait until I have 6 months of paystubs at the lower pay level to be used for the income test. I don't think we'd be able to afford the 13 payment if it was calculated at my current income level for the past 6 months, before the $600 pay reduction.

Anyway, my issue is that we stopped paying on our CC's back in October last year (4 months now with no payments) because we were planning to file in Feb this year. Now we're looking a possibly another 6 months. I'm not sure if we could go that long without being sued, wage garnishment, etc.

Does anyone have any advice here? Should I go ahead and file and include a copy of the pay reduction letter in hopes that the attorney and trustee will consider the lower pay going forward when calculating my 13 plan payment? Or should I just start the 6 month clock all over again and hope to not be sued in the mean time?

Thanks in advance...

[StartingOver08]

Wait for the 6 months so your new income is showing. Remember, you are going to be in the plan for a long time, 36 to 60 months. Don't go in with an artifically high income. It is already difficult enough to make the adjustments.

[Trixie007]

I'm confused... Don't they use your current monthly income to establish your payment plan? I thought the previous 6 mos was just for the means test to see if you qualify for a 7 or 13?

[bxpete]

I'm confused... Don't they use your current monthly income to establish your payment plan? I thought the previous 6 mos was just for the means test to see if you qualify for a 7 or 13?

That would be great if that's true, but that's not the way I understand it. Can anyone confirm?

[catleg]

Are you filing a 13 because you have assets to protect or because your income is too high?

[bxpete]

Are you filing a 13 because you have assets to protect or because your income is too high?

Both, actually. We're way above the median income, and we also want to keep our house, cars, etc...

[liz417]

I've stopped paying the cc's over 8 months ago (72K debt) and haven't been sued...yet. You really need to wait to file, you want your lower income to reduce your repayment plan. Have you retained an attorney yet? If so, send all collection calls to him/her. If a cc sues, you will still have some time to file and that will freeze everything. So don't worry.

Good Luck!

[Trixie007]

Anyway, my issue is that we stopped paying on our CC's back in October last year (4 months now with no payments) because we were planning to file in Feb this year. Now we're looking a possibly another 6 months. I'm not sure if we could go that long without being sued, wage garnishment, etc.

We made our last full payments to cc's anywhere from May to August of last year - so far none of the accounts have charged off, but several have threatened to. We won't be filing until mid-April (I think) as we are waiting for DH's OT to fall off (from Sept) and our last BT was April 08. Our attorney believes that we should be safe from being sued - we only have less than 3 months til filing... I think the fastest anyone could get a judgement, then get a garnishment set up does not fall in that time frame.

I would definitely start getting all your ducks in a row, be ready to file if someone is close to getting a judgement down the road. But, if that doesn't happen, you'll have your six months for your income to go down...

[bxpete]

Thanks for all the quick replies. We do have all of our ducks in a row to file now, bank statements, pay stubs, tax returns, etc. if necessary. I guess we'll just start the damn clock all over again and wait until September or so to file. I'll do the DV thing with any and all CA's to hopefully slow them down a bit...

[MJJ3767]

Our attorney believes that we should be safe from being sued - we only have less than 3 months til filing... I think the fastest anyone could get a judgement, then get a garnishment set up does not fall in that time frame.

I am a bit confused with this statement. A company can sue you today and 20 days from now have a judgement against you so why are you being told you are safe from being sued with less than 3 months to file?

[Trixie007]

I am a bit confused with this statement. A company can sue you today and 20 days from now have a judgement against you so why are you being told you are safe from being sued with less than 3 months to file?

The have to serve the summons first, I believe we have 20 days to respond to that - and I just had a hysterectomy last week, so could ask for an extension... so, I likely have at least 50 days from the time I get served for a judgement to occur. I think I've read that there are other reasons you could also ask for an extension for.

If we file April 14th, that's 75 days from today. So even if they serve me today, there's no way they can get a judgement and have a wage garnishment processed before we file. And, if need be, we could file April 1st.