!!!URGENT question re: changed situation

[troubledBk]

I filed for C7 on 31 August, pro se. I got that far on the advice I found here, so I'm hoping ya'll can help me now.

The story so far:

Have about 16000 in CC debt, and 10k left on my car worth maybe 6k.
Lost my job, was unemployed for a year. Tried to keep up with CCs, my wife made the car payment, we borrowed from family to try to keep up, but couldn't. I'm working at a temp position, since march, making much less than I used to, a little under 30,000 before taxes, assuming they keep me on permanently. My wife doesn't work any more, after our first son was born in April. We had long since given up trying to work with the ccs. They would go, "oh, we understand, just send us 80 for this month," and then as soon as they got it they would demand 4 or 5 hundred. We haven't communicated with them in about nine months. They finally scared us into bankruptcy with threatened immediate legal action, in letters, and in phone calls to family and even neighbors we had never met before. We were sure we were going to get a discharge, no problem, but then after filing I got a lucrative, one time contracting gig. It's netted me almost 15,000, before taxes. I'm not sure how much will be left after uncle sam cuts in, and I haven't actually been paid most it yet, and I don't know when I will be.

What do I do?

If I stay C7, A) will I still be able to get a discharge, and B), will they leave me any of that money to pay the taxes on it with?

If I switch to C13, will they make the payments way higher than I can really afford, because there's suddenly this chunk of money that isn't a repeat thing?

Should I just withdraw the bk? Can I? The car is also failing, with way too many and too expensive of repairs for me to fix, except by using up all of the money I made, which leaves me back where I was with the ccs, and I was going to give the car up in the bankruptcy, but if I withdraw or go C13, I'm stuck with it.

Please help. My next installment for the filing fee is due friday, and I'd rather not pay another if I'm going to be backing out of bankruptcy.

It was hard enough going to bankruptcy in the first place, and now I don't even know how I can go that last-ditch route. I just wanted to get a fresh start for my family, and I don't know what to do. My wife had suggested bankruptcy when I wasn't working, but neither of us new anything about it. If I had just done it then, we would be okay now.

[troubledBk]

We had 8 dollars left after the first installment of the filing fee we paid, and if I had done it a few months or a year earlier, we would have a nice bit of money to let us buy a small fixer upper, or something, and instead it's all for nothing. I just feel like I've ruined everything for the people I love the most. I'm sorry for gushing, and I forgot to say in my initial post thank you for any help you may be able to provide.

[SinkingFast]

Filing Ch 7 is a picture of your financial affairs as of the day you filed. A snap shot. Not what happens in the future.

At your 341, the Trustee may ask if you've had any changes. Do you or will you receive bonuses. That sort of thing.

Answer truthfully.

You've had a change of employment. You have not yet been paid or been paid $X to date. If the Trustee presses for more info, you might say how long the job is supposed to last, time wise, and the total gross amount you'll be paid. But don't tell more than you need to.

While this new gig may seem like a bit of a financial windfall for you, your actual Net may be close to the same as you're used to getting.

Keep in mind,.......... As a contractor,......... You're responsible to pay ALL your income taxes, Medicare, and Soc Security (both your part and the employer's part). If you're typically taxed at 25%,......... Figure easily on paying out 35%-40% of the gross.

[troubledBk]

Oh, my God, that's a relief.

I had thought that, before, but I was getting nervous and was reading through here about the questions at the 341, and one was to the effect of "Does anyone owe you any money?" and I guess I panicked, and thought that if I had money coming they would take it, and leave me with a big tax bill. I upset my wife for nothing.

Thank you so much, so so much. Also for the tip on the taxes. I was figuring I would leave almost every penny untouched until I paid the taxman, as I've never done that before. Again, thank you so very much.

[cathywhite4495]

SF said it all but I just want to add my own support to you. I am also a pro se filer and I know the stress you are feeling right now! Things get much better after the 341. My trustee was extremely nice and complimented me quite a bit about my papers.
I felt the same way about letting my family down but now I can see that I did the best possible thing in order to give us a fresh start and do things the right way this time. I didn't realize how much stress I was having about debt until it went away.
Hang in there!!!

[Boscoe]

As was said, it is a snapshot. I wouldn't call $15k a "windfall" so I don't think it is really that relevant. If he asks "does anyone owe you money", that is ON THE DATE OF FILING. This happened afterwards, so you should be ok.

Don't volunteer this info - answer truthfully if it comes out, but it should not. If it was not an asset or liability as of filing date, it is not part of your chapter 7. Since you've already filed the bk, let it run its course, get your discharge and now you have a fresh start with some fresh cash.

[JollyGG]

Honestly, while trustee's do sometimes ask if anything has changed since you filed they don't every time.
Our lawyer warned us that that may be a question but our trustee never really ended up asking it.
Be prepared to do as Sinking Fast advised and only answer if asked, keep your answers short and factual, and don't volunteer anything and you will be fine. However, honestly it may never come up.

[PaKettle]

Honestly, while trustee's do sometimes ask if anything has changed since you filed they don't every time.
Our lawyer warned us that that may be a question but our trustee never really ended up asking it.
Be prepared to do as Sinking Fast advised and only answer if asked, keep your answers short and factual, and don't volunteer anything and you will be fine. However, honestly it may never come up.

I have a question about this 341 question re income changing.

I am well under the Means test but if we don't file until October 19th or so as is planned, there is a good chance I'll get about 20% extra work in November, some of which might be before the 341 meeting.

This is seasonal in that sometimes I get more hours in Nov., Dec, and Jan but then it drops off again the rest of the year, usually.

So if I am asked if anything has changed at the 341 meeting do I really have to answer about this, or could I just say "No", because it's not likely to be a permanent change?

Also, I think even with the increased income in these 3 months we would still be under the Means Test Median for our state for this year.

I am also wondering if the trustee asks and you just say no, is he really going to FIND OUT if you got some extra income or not?

[JollyGG]

I am also wondering if the trustee asks and you just say no, is he really going to FIND OUT if you got some extra income or not?

The way they would find out is from your tax return. Since you are filing late in the year they will probably ask to see your tax return. However, in the situation you described your tax return would be similar to the two years worth of tax returns you gave when you filed and therefore nothing has changed.
So when asked you can honestly say nothing has changed.

And honestly they are looking for a significant change not a few extra hours on a paycheck.

We filed so our six month lookback included maternity leave, and a pay cycle change making my checks appear small enough to get us in just under the median. However, if you looked at the last years tax returns or even the tax returns the trustee saw after we filed it was obvious what my typical salary was. It really was not an issue. The trustee had all the information.

[PaKettle]

Thanks. Now I just hope I CAN Get some extra work in November!

The way they would find out is from your tax return. Since you are filing late in the year they will probably ask to see your tax return. However, in the situation you described your tax return would be similar to the two years worth of tax returns you gave when you filed and therefore nothing has changed.
So when asked you can honestly say nothing has changed.

And honestly they are looking for a significant change not a few extra hours on a paycheck.

We filed so our six month lookback included maternity leave, and a pay cycle change making my checks appear small enough to get us in just under the median. However, if you looked at the last years tax returns or even the tax returns the trustee saw after we filed it was obvious what my typical salary was. It really was not an issue. The trustee had all the information.

[demismom]

Our Trustee didn't ask us if anything has changed. He did ask if we were owed any money or were planning on suing anyone. We said yes on the second part, but it was for about $3000 and he just let it go.