How far over the median income level?

[slappy]

Hello, I am about $1500 over the yearly median income for my state, or about $130 a month. My question is, is that number pretty much cut and dry and if you're over, you're over or is there wiggle room. It seems I am pretty close to it compared to some other people on here. Any info would be appreciated. thanks

[Dennis1971]

I was wandering the same thing. Our attorney said if your close it's not that big of a deal, he said normally they can use other factors to pull you under the amount. I know were close on the median level, but he thinks we will be alright, of course he might have just said that to get us to pay the money and go through with a bk. Its sorta of a croc, but our attorney said he doesn't know which way they are going to file us until we get together and sign all the papers, but he thinks we will get to go 7.
Is there anyway that you can get your pay down? I've started not working any overtime at all and using some of my vacation time up. My work is really slow right now and they are continually begging people to go home for
LOW (lack of work) and no pay of course. So I have been missing out a day every other week, our employer already said if enough people don't take advantage of LOW then they will have to lay people off.
Good Luck

[Cali]

If you give your attorney all the information, he should be able to say which one you qualify for before you sign paperwork.

I was wandering the same thing. Our attorney said if your close it's not that big of a deal, he said normally they can use other factors to pull you under the amount. I know were close on the median level, but he thinks we will be alright, of course he might have just said that to get us to pay the money and go through with a bk. Its sorta of a croc, but our attorney said he doesn't know which way they are going to file us until we get together and sign all the papers, but he thinks we will get to go 7.
Is there anyway that you can get your pay down? I've started not working any overtime at all and using some of my vacation time up. My work is really slow right now and they are continually begging people to go home for
LOW (lack of work) and no pay of course. So I have been missing out a day every other week, our employer already said if enough people don't take advantage of LOW then they will have to lay people off.
Good Luck

[Dennis1971]

I think I might have worded that wrong, when we first met we took our pay stubs and we knew we were border line on the median amount. Now we have to do the pre-counseling and get all our paper work together and then go back and sit down and they will do all the means (etc.) tests and we sign the papers then. Thats when we will know if everything comes out alright for us to be able to file a 7 or 13.
Dennis

[Cali]

Ok, our attorney did the means test on our consult. Of the 4 we saw all but 1 did that.

I think I might have worded that wrong, when we first met we took our pay stubs and we knew we were border line on the median amount. Now we have to do the pre-counseling and get all our paper work together and then go back and sit down and they will do all the means (etc.) tests and we sign the papers then. Thats when we will know if everything comes out alright for us to be able to file a 7 or 13.
Dennis

[laurannm]

We had a tough time finding lawyers who would run the means as part of the consult. Most wanted at least a deposit before they ran the numbers, others wanted full payment.

[Dennis1971]

We talked with several and none would do the means test either. Even with out attorney that we have now (which I am happy with so far) they don't do it until your final meeting with them. That would be awesome to find one that would be upfront and do it in the beginning, so that way you would know what you are going to get and pay for.

[jenopher]

Interesting, I saw 2 and had a phone consult and all were willing to do a means test as part of a consult. The phone guy's was a little more brief, but we got the income and car and mtg expenses in there to see if we qualified. Do they offer a refund if you don't qualify?

[Dennis1971]

No they all just kept saying "well even if you have to do a 13 its not the end of the world." Followed by "You will probably only have to pay back 10% of the amount you file on." Thats why it freaks me out to read on here about some people having to pay back 100% of the amount that they file on.

[Help!]

You can complete the means test, schedule I and schedule J on your own to get a feel for whether you want to pursue a Ch. 7 filing or Ch. 13. It seems that many attorneys are eager to get you into a 13 without giving serious consideration to a Ch. 7.

If I were you, I would first do the means test on my own (using real numbers, only those that can be substantiated with documentation). If I passed, I would then fill out schedules I and J based on what my budget would be post-BK. If that showed little or no net income, I would then know a 7 is a possibility. There are many in this forum who will be able to answer questions about those calculations.

I know this sounds like a real pain, but you will be much more knowledgeable going into the process and it will give you confidence in your decision either way.

I thought it was my responsibility to provide the attorney/paralegal with the numbers and their responsibility to take care of everything else. I learned (the hard way) at my 341 hearing that this isn't the case. The more you know about your petition and the numbers in it, the better equipped you'll be to answer questions if they arise.

Good luck!

[laurannm]

You can complete the means test, schedule I and schedule J on your own to get a feel for whether you want to pursue a Ch. 7 filing or Ch. 13. It seems that many attorneys are eager to get you into a 13 without giving serious consideration to a Ch. 7.

If I were you, I would first do the means test on my own (using real numbers, only those that can be substantiated with documentation). If I passed, I would then fill out schedules I and J based on what my budget would be post-BK. If that showed little or no net income, I would then know a 7 is a possibility. There are many in this forum who will be able to answer questions about those calculations.

I know this sounds like a real pain, but you will be much more knowledgeable going into the process and it will give you confidence in your decision either way.

I thought it was my responsibility to provide the attorney/paralegal with the numbers and their responsibility to take care of everything else. I learned (the hard way) at my 341 hearing that this isn't the case. The more you know about your petition and the numbers in it, the better equipped you'll be to answer questions if they arise.

Good luck!

I would say this is pretty sound advice. A lot of lawyers we talked to immediately wanted to throw us into a Ch 13 as soon as they heard we were above-median, and without looking at any numbers. It took us a while but eventually we did find a lawyer who would run the means test as part of the consult.

You can calculate the means test yourself at http://www.legalconsumer.com. to get an idea of where you stand (plus you could always bring a copy of it with you to show to an attorney and get their thoughts).

I downloaded a fully-functional demo of Best Case Bankruptcy Software. On here it has the schedules I & J and it will automatically calculate the results once you enter your income and expenses.

I wouldn't freak out on what other people are paying. Your payment will be calculated based on a detailed analysis of your income vs expenses, means test or both, so every situation is different.