income question HELP

[karm43]

This has probaly been asked before. If your income drastically drops, do they still look at 6 months back? Cut down on hours on second job last month and now they say they have no work for me. So now I really do not have that income. But if I file now I am swrewed I will not make enough to pay a chap 13 if they look back 6 months.The payment would be too much. Any suggestions? Has anyone ever been in this position? I am trying to wait 6 months but I keep getting letters and fear I am closer to another judgement.

[ValleYum]

The Lanning decision could help you.

In Hamilton v. Lanning, decided today (June 7, 2010), the Supreme Court held in an 8-1 decision that “when a bankruptcy court calculates a debtor’s projected disposable income, the court may account for changes in the debtor’s income or expenses that are known or virtually certain at the time of confirmation.” In other words, rather than mechanically applying the calculation of “current monthly income,” which looks at the Debtor’s income for the 6 calendar months before the filing of the petition, the court can take into consideration changes in income that have occurred or are known or virtually certain to occur at the time of confirmation.

http://www.*************************...ly-mechanical/

[LadyInTheRed]

Lanning will help in getting a Chap 13 plan payment based on your current and expected future income instead of the income reported on the means test. But, it won't help you pass the Chap 7 means test which is based on your income during the 6 months before filing.

Karm43, you will need to wait until the 6 month lookback drops your income low enough to pass the means test. Try to ignore the letters. They are meant to scare you. Don't let them. If you get served with a summons, you can decide on your best action at that time.

ETA, I just reread your post after noticing it is in the Chap 13 forum, and see that you didn't mention waiting for 6 months to qualify for a 7. I'll still leave my original post in case it is useful for someone else.

Another forum member did recently post about their attorney successfully using the Lanning case to base their plan payment on their current income instead of the means test 6-month income. Here's the thread: http://www.bkforum.com/showthread.ph...hlight=lanning

[ValleYum]

Hi LITR

I mentioned the Lanning case to the OP since she was concerned that her income in her 6 month look back would be the sole basis for her Chapter 13 payment and she had recently suffered a loss in hours at her second job.

Our forum member enginegirl also was able to use the Lanning decision to have her payment reduced when her income dropped drastically.

http://www.bkforum.com/showthread.php?70411-Chapter-13-Struggles...-Barely-able-to-make-payments...-may-divorce...&p=517422#post517422

[LadyInTheRed]

Hi LITR
I mentioned the Lanning case to the OP since she was concerned that her income in her 6 month look back would be the sole basis for her Chapter 13 payment and she had recently suffered a loss in hours at her second job.

Yeah, I realized that after I posted which is why I edited my post with the "ETA". My bad. I read something into the OP that wasn't there.

[karm43]

Thanks for the info gonna try to hold out. If I get a summons just gonna do it. I want to have everything in order paystubs and such.