File 13 Expecting to Convert to 7?

[Dancer]

DH will be filing alone. The short sale on his house is pending and the lawyer thinks it will close in a few weeks. The lawyer told us that she thought he could file a chapter 7 but I think she was missing some information needed for the means test. I've run the numbers myself and I don't think DH passes due to my earnings. I am winding down my job and should be done working in about a month although I do not have a firm termination date.

If DH files with just his earnings he will pass the means test. Obviously it's best if we wait until my earnings are not skewing the means test however with the pending short sale I don't know how long DH can wait to file.

Based on everything I've read it appears that DH needs to file before the short sale is finalized which means that he may have to file a 13.

Our income will change significantly in about 6 months and he would then pass the means test.

Would it be stupid to file a 13 knowing that he will want to convert to a 7? I know that there will be costs associated with converting.

[keepmine]

Why the hurry to file ?
Why can't he wait a few months?

[despritfreya]

In addition to Keep's questions, filing bk before completing the short sale will put the short sale on hold until DH obtains an Order from the Court allowing the sale. The Court may not entertain a Motion to Sell if he files a Chapter 7 because technically only the Trustee has the authority to sell an asset of the bk estate in that Chapter.

DH needs to go back to his attny (with you if such is proper) and verify whether or not your concerns need to be considered in determining when to file.

Des.

[Dancer]

If he waits to file it would have to be at least 6 months. I've got stock options I need to exercise. I've held off exercising them because they would skew the means test because they are large and will come across on my paystub as regular earnings. We were going to file before I exercised them.

But if he can't pass the means test now, I need to exercise the stock options and we need to wait 6 months.

I've told DH to call the attorney tomorrow. I want him to ask her about stocking the short sale to buy us time and specific questions about us passing the means test.

[Dancer]

I called the attorney my DH has been working with but she's the left the firm. DH says she was there last week and didn't tell him anything about leaving.

DH showed me the forms he got; Chapter 13. Which at least makes sense because it matches my numbers. But now I'm wondering why no one is telling him to wait a few months to file. It seems like the rush is to file before the short sale finalizes but why can't we just stop the short sale? Am I missing something? Why isn't the attorney telling him this? I need to read the contact DH signed when the listed the house to see what the penalties are if he refuses to finalize the sale but they can't be that serious.

Part of the disconnect is that my DH is the client not me. I've been part of some conversations but not all and I think things are being lost in translation.

We are a borderline case and the marital adjustment is critical for us but no one is asking me any questions about my expenses. Is that a red flag?

Along that line, can I increase my expenses to increase the marital adjustment? For example, could I sign DD up for summer school or join a gym? How closely do they scrutinize the non-filer's expenses? Would summer school be excluded because its a household expense instead of my expense?