Clarification please

[Doghouse]

I'm going to try one more time -

If one is unemployed but has some exempted income, are they considered as having zero available to pay unsecured debts?

If one has $1000.00 in exempted income, has $500.00 in "regular" monthly expenses (Food, ele, etc.) and $800.00 in Ccard bills which equals $1200.00 a month total bills.

You would be $200.00 short of making payments.

HOWEVER, if one stops making the $800.00 in Ccard bills one has an extra $500.00/month.

My question is do they consider that you have $500.00 to pay Ccards and therefore, NOT able to file Chp. 7 even though this is exempted income?

(Boy, this really got complicated. - jb

First, your total above is $1300 and you are $300 short.

Again, the answer is NO, they won't consider the extra $500 to pay CCards. As an example, I will be receiving appx $1800/mth in unemployment benefits. I already stopped paying the mortgage and Ccards. I am still going to continue my car payments. Between car and other living expenses (food, electric, gas, insurance etc) I figure I will spend no more than $1200/month if I stick to a budget. The $600 extra is not considered extra money available to pay my creditors thus pushing me into a chpt 13 and making me unable to file a chapter 7.

While I am going to be looking for a job, I hope to remain unemployed for maybe 2 months to bring down my average further for the means test. If I am unemployed 2 months, I essentially had ZERO income for the means test (and not $3600 received from UI).

Anyway, consult with some bk lawyers to get a more definitive explanation and information.

[jeb]

Tks Irprn,

What I was trying to ask - and certainly didn't do a very good job at it - was if one starts with not enough money to pay all bills but when you stop paying Ccards you have monies left over but all your income is exempt does the fact that you have SOME monies to pay SOME of the Ccard bill or a little on all of them, does this kick you out of Chp 7 and into Chp 13.?

Someone told me that because all my income is exempt I am bullet-proof. The downside is that they have about 7 years to keep after you and can attach any non-exempt monies you might get in the future.

Tks and hope all had a great T-Day - jb

[TEW]

Jeb
This is what my lawyer told me about my exempt income. It is exempt until it get into your checking account or in your hot little hands.
If after you fill out schedule J and you have more then $166.00 disposable income that is what will put you into a chapter 13.
With the numbers you have posted it looks like you will have no problem coming up with a minus number and filing chapter 7.
I my state you must include all sources of income exempt or not.
does this help ?

[jeb]

First, your total above is $1300 and you are $300 short.

Again, the answer is NO, they won't consider the extra $500 to pay CCards. As an example, I will be receiving appx $1800/mth in unemployment benefits. I already stopped paying the mortgage and Ccards. I am still going to continue my car payments. Between car and other living expenses (food, electric, gas, insurance etc) I figure I will spend no more than $1200/month if I stick to a budget. The $600 extra is not considered extra money available to pay my creditors thus pushing me into a chpt 13 and making me unable to file a chapter 7.

Dog, tks - that is what I was looking for. (I think!)

IF I now understand what you and TEW have said, WHEN I fill the list with all that I owe, which includes the Ccards, THAT is the figure that is used as to whether you have enough to pay all your bills or not - I don't.

If I stop making payments on the Ccards and accumulate cash in my bank account - maybe $500.00/mo - , this excess is NOT counted as available to pay my debts. (Somehow, this just doesn't sound right.)

The question then becomes, WHEN do I stop making payments and accumulating cash in my checking account - before filling or after filling?

At present, I have no unpaid bills but have been running through my savings account to make up the difference - only about 3 months until it is all gone at present rate.

Tks all - jb