Temporary increase in income. What to do?

[ThreadsSnapping]

Hubby has a temporary increase in his hours at work for the next 2-3 months of 12 hours of overtime every other week. I told our attorney about this and was told that it doesn't really matter as everything is based on the past 6 months of income. I thought the Schedule I you had to use your current income, which would be higher for us. And how would I calculate the current income? Should I use the current higher income and make the adjustment at the bottom or just use the average from the past 6 months and adjust it upwards to account for the increase at the bottom? Or take 3 months of the higher income and 3 months of the regular income and average it out? I can't imagine that I don't need to report the increase anywhere.

I'm ready to tell the lawyer to take a hike and file it myself but hubby is throwing a fit over that idea. Not sure why as he knows how much time I have spent correcting the lawyers mistakes!

TS

[magyar123]

Are you filing a 7 or a 13?
You/he should use his current wage income - without calculating in possible overtime, unless there is a written agreement between him and his employer mandating him to actually work overtime.

[Cali]

If he hasn't been paid the O/T, how would you use it on the Schedule. Is there something signed saying he will get the O/T?

[ThreadsSnapping]

We are filing a 7. His regular schedule is 36 hours one week and 48 the next. That is what he has always worked until the last few weeks. It should go back to the normal 36/48 hours by the end of the summer.

I'm just afraid that if they ask for paychecks from the filing date to the 341 they will see the big increase in pay and dismiss the case or push us into a 13 which would be a waste of time as we would convert back to a 7 in a few months.

This is driving me nuts! They had to increase his hours now of all times. Ugh!

TS

[Cali]

Have you filed yet?

Normally the 341 is a month after you file.

Do you qualify for C7 by income or by Schedules?

I filed 2 weeks ago and I have my 341 next week. My attorney didn't say anything to me about bringing paychecks or I should tell him if my DH gets an increase in pay. We qualified for C7 by Schedules.

[ThreadsSnapping]

No, we will be filing in the next week or so. A friend of mine filed recently and they were asked to bring in their pastubs and bank statements from filing to the 341. They are in a different curcuit but I just want to do everything right and not get into unnecessary trouble.

TS

[Cali]

I have to bring the current bank statement when I go to my 341.

No, we will be filing in the next week or so. A friend of mine filed recently and they were asked to bring in their pastubs and bank statements from filing to the 341. They are in a different curcuit but I just want to do everything right and not get into unnecessary trouble.

TS

[ThreadsSnapping]

He gets direct deposit so it would show on the bank statement.

[AngelinaCat]

.

I'm ready to tell the lawyer to take a hike and file it myself but hubby is throwing a fit over that idea. Not sure why as he knows how much time I have spent correcting the lawyers mistakes!

TS

I can second that emotion. Our worthless attorney has, for all intents and purposes, abandoned us in our situation, leaving us with a letter that needed to be responded to in 15 days. We got this in email TODAY. The 15th day is TODAY.

We are composing letters right now firing her, and petitoning the court for an extension.

[ThreadsSnapping]

I haven't been here very long but your story is scary. I don't think this guy is that bad but who knows anymore.

The reason he wants to keep the lawyer is he had done a 13 back in 1996 and it eventually got dismissed about 6 months into the plan and the lawyer really saved his ass in that case. It involved one secured creditor that just went after him at the first chance they got and had it dismissed. He's not sure exactly what the lawyer did but he got his creditors to not sue him while waiting for payment. He paid everyone off in about 6 months at 100%. He was married to his ex back then and there were assets that needed to be protected and the lawyer did his job then.

But this time around, the only things we want to keep are our 2 cars and the CU has said that they won't repo if we don't reaffirm. There may be a few hundred dollars in equity in the 2 cars total. We don't really have anything to lose asset wise, so I'm not sure why he is so against it.

And now he thinks that he might be getting a promotion in the next few months. But that won't happen for a few months probably. Hopefully after this is all done and over with. When it rains it pours!

TS

[AngelinaCat]

I believe that you will be okay. Your husband had good results the first time around, and is probably hanging on to a 'security blanket' so to speak. I'm glad to hear that the CU won't bother you. Do you have that in writing?

I will keep my fingers crossed, and prayers goin upward for the possible promotion. Good luck and best wishes for you both.

[ThreadsSnapping]

I guess I should mention that we are slightly over the median and the extra overtime adds up to an extra $700 a month. So this is a fairly large difference. And the lawyer doesn't want us to go too negative on our Schedule J, so with the increase in income and an expense disallowed, I am afraid we will be pushed into a 13 for a few months and then have to convert back to a 7 in the fall.

I just want this to all go as smotthly as possible.

TS

[AngelinaCatHub]

Look “Threadssnapping”, O.T. you cannot depend on. “Cat” and I have had to give the same damned stuff four times to our crummy lawyer just to get her arse in gear. It took 16 months planning a 13, then Ms. Cat lost her job and we have an AP because of our enemy who caused much of this, this caused us to go 7. Just go with your normal last six months, unless asked. Your hubby in my opinion is right. Ms. Cat said search on “AngelinaCat” and read her abbreviated post today. You don’t have real problems at this time. I hope hubby gets his promotion after the bk is over. Give them what they want honestly, but DON’T volunteer anything. That equates to ‘kicking the sleeping dog’. Only my opinion. ‘Hub

[danaf]

The means test is the six month lookback. But the schedules are current income just like you are saying and wondering about. Is there any way your husband can decline the overtime for the time being? Maybe say he's got some family issues he has to deal with (I know - nuts since we all need money). But if the trustee asks for your bank statements after you file, which seems to be the norm, and sees the OT - it might be a problem. I suppose you could always say the OT is intermittant and since it doesn't show on past bank statements, maybe the trustee would buy it. In that case I'd average out the year, including OT and make a notation at the bottom that OT comes and goes and you never know when - ie. it's not regular. That would probably suffice.