Need support (long)

[depressed32]

Hi, I have been lurking for a while and thought maybe I should see if anyone has a similiar situation. I filed Ch.7 in March 2007 and had my 341 on April 26. Trustee was nice, mostly just wanted to know why my husband didn't file with me. I am also being audited, which is my problem. I was just informed by my attorney that the auditor said I don't pass the means test. I substitute to the tune of about $31 a month and my husband brings home $1211 every other thursday and an OT check of about $263 every 3rd friday. In the month of Feb. he worked OT and brought home an OT check of around $1000, not the norm. The auditor used this as our regular income for our means test, which puts us over. Now they want to know whats in my husbands retirement account ($25,000) and since I sometimes sub at my kids school they want my retirement info ($31). I don't know what they are looking for or if they can take our retirement. My att. has been wonderful and she is saying just give them what they ask for. Thats fine, but I still don't know how I prove that we really don't make that much money if they are determined to think we do. Does anyone have any advice or similiar situation? I am so stressed and feel very alone, don't really know what to or how long the audit can drag out my case. Sorry this is so long, Thanks

[jal1129]

Welcome! Try not to get too depressed over all of this. What did your attorney say about not passing the means test? Do you know how much over the median you are?

All income for the last 6 months is counted, whether its regular income or not. You gave us your net income but how much is your gross, what state are you filing in and what is your family size?

The trustee cannot touch the 401k's so don't worry about that.

[depressed32]

All my attorney said about not passing the means test was that it was bull. Her exact words were a little stronger. She didn't tell me exactly how far over the auditor is saying it put me. We live in Tx and have 4 in our family. My husband's gross is 1827.42 every other thurs. and about 308.00 every 3rd. friday. My income will be less than 1000.00 for the entire year. We were told in Tx that the means test for 4 is 58,153.00, so we are close in gross income. But when we filed my attorney said we definetly passed for a no asset ch. 7.

[CATCHMEIFYOUCAN]

Best wishes

But when we filed my attorney said we definetly passed for a no asset ch. 7.

keep your hopes HIGH ! you will survive and it will be all over in a blink of an eye ! i know easier said than done. But just a little encouragement and hope will help the process .

Best of Luck, Catchmeifyoucan

[depressed32]

Thank you! I really appreciate the help and support!

[DeadManCrawling]

Federal law explicitly exempts ALL retirement funds that are in approved accounts-401(k), IRA's, KEOUGH. In general, any plan approved by the IRS for retirement purposes. Or said another way, any account you would OWE TAXES ON if you took it out early.

I don't think the trustee is considering taking your retirement money. The possible exception here would be if you funded an unusually large amount into a retirement account in the last year. That could be up for grabs, and could leave you on the hook for the taxes.

If you have a loan against the account, thye may be interested in that, or if you took some early withdrawals.

It also could be just a matter of curiosity-wanting to verify something that doesn't add up on paper. I have read some stories here and elsewhere where trustees woder "how the hell did they SURVIVE on the numbers they reported?" Indicating that it looks impossible. When you (like us) are on the edge of survival, we debtors find ways to do the impossible, sacrifice everything for mere existence, which from the outside might LOOK impossible.

Could be as simple as that, and that your retirement fund may clear things up under the above scenarios. Short of robbing a bank, we stretched ourselves to the limit, and though we are high income filers, we are also high debt filers. We have lived the last year without a dollar's margin of error.


I doubt it's something to worry about in any case.

-DMC

[CATCHMEIFYOUCAN]

I was able to exempt my deductions going into my 401k, I had 2 401k plans because I was working 2 full time jobs. Not only did I have loans out with both companies but also extra deductions on top of the loans. So I was "saving," $600-$700 from becoming "disposable income." I also withdrew a $1000 just before I filed which reflected on my bk forms but the trustee never asked what I used it for (heh heh). EASY, if asked I would say TO PAY THE LAWYER! BUT the Trustee never ask how did you come up with the lawyers fees .. yahhh know ?????????

Best Wishes, Catchmeifyoucan

[SinkingFast]

Maybe the Trustee is taking a portion of Hubby's income for your support. Maybe even as much as half. And maybe the Trustee isn't allowing for you to take both kids.

If that's the case,......... Adding half of Hubby's income to yours,........ Where does that put you in relation to the Median for a family of 2 in your State??

[depressed32]

Actually, it is the auditor asking for this info. and saying I don't pass the means test. I'm sorry I wasn't clear. If they only allowed for a family of two that would put me under the median. My attorney is telling me the auditor is only using the month of Feb. when we made $740 more than normal. I've been fortunate that the trustee isn't asking for anything yet, but I wonder how long this audit will hold up my discharge. I'm not sure how I would file 13 since I've been borrowing money just to get by.(from my mom). Thanks

[DeadManCrawling]

If they are basing this all from ONE month's income statement, your lawyer should be able to clear this up with a phone call.

The law requires a six month rolling average, and I would think your attorney can fix this pronto.

DMC

[JRScott]

This site's been a great support to me. I've not gotten mine filed yet, I'm suppose to sign on June 13th.

I do hope you are able to overcome this hurdle. I wish you the very best .