Sorry for monopolizing the conversation . . .

[uneasy]

but hey! no one else is talking!

So here's another question. If a client (or 2) pays me during the 6 months before I file (and that could put me over the median or cause me to fail the means test), and I just put off depositing a check (or 2) until after the 341 or even after I'm discharged, what could happen?

I'm sure there is a risk here, but I just want to be clear on what exactly it is. If anyone out there could speak to the real, practical risks, and not just the morality of it, I would be grateful.

[jessegirl]

but hey! no one else is talking!

So here's another question. If a client (or 2) pays me during the 6 months before I file (and that could put me over the median or cause me to fail the means test), and I just put off depositing a check (or 2) until after the 341 or even after I'm discharged, what could happen?

I'm sure there is a risk here, but I just want to be clear on what exactly it is. If anyone out there could speak to the real, practical risks, and not just the morality of it, I would be grateful.

How much money are you talking about?

[uneasy]

I'm guessing it could be from $5-$10k. Or nothing at all.

[AngelinaCatHub]

I'm guessing it could be from $5-$10k. Or nothing at all.

I'm sorry 'uneasy' but this kind of advice we just cannot give here on this forum. We have high credibility, and anything that looks like a prank against the system is not in order. No problem as if you don't ask, there is only one answer. If you ask, there are one of two. I'm stating your question would not be answered here and if it is, the Moderators would take it down. Don't fret though, I'm sure you will be fine. 'Hub

[jessegirl]

I'm guessing it could be from $5-$10k. Or nothing at all.

I wouldn't hide anything. You have to be honest otherwise it will bite you back. Are you that close that you wouldn't pass the means test with that amount. Just cause it may put you over the median doesn't mean that you still wouldn't qualify for a chapter 7.

[uneasy]

I'm sorry 'uneasy' but this kind of advice we just cannot give here on this forum. We have high credibility, and anything that looks like a prank against the system is not in order. No problem as if you don't ask, there is only one answer. If you ask, there are one of two. I'm stating your question would not be answered here and if it is, the Moderators would take it down. Don't fret though, I'm sure you will be fine. 'Hub

Oh . . . sorry. Ok. No more questions on that topic.

[uneasy]

I wouldn't hide anything. You have to be honest otherwise it will bite you back. Are you that close that you wouldn't pass the means test with that amount. Just cause it may put you over the median doesn't mean that you still wouldn't qualify for a chapter 7.

Right now, I am far away from the means test, but I have a new client that is talking about starting something this summer, and depending on what they want to do, it could definitely put me over. And the problem is that I don't want to say not to new business, but it's possible that a payment of the wrong size could knock me right out of the game.

[AngelinaCatHub]

Uneasy: Not a problem with me. We must all stay up and up or damage could occur to a person on bad advice. This understanding is formost as we are only giving our opinions and experiences. NOT LEGAL ADVICE.

Mrs. just reminded me also, at your 341 meeting, they are most likely to ask if anything has changed. Being under oath, is not taken lightly in Federal Court.

I would not turn down new business. If there is a LEGAL way to stall payments I would not know of it. Maybe you would??? 'Hub

[DebtStinks]

You can't hide checks that you have... that is fraud. But if you held off on billing them that might be different. Here is an article that I came across today that deals with earned but not paid income:

Is Income Earned Prior To Bankruptcy But Paid After Included In The Means Test?

Edit: Actually I think you would have to wait to even invoice them because your accounts receivable are a fair game asset.

[uneasy]

Well, I don't think it's illegal to POSTPONE invoicing. That's happened in the past just because I was busy.

If the trustee asked if anything had changed, I wouldn't even know how to answer because my business is really unpredictable. What is change? A new client? New clients come and go all the time. A large project? That happens too. Anything is possible and not much is surprising to me any more. But, if they asked if I had any outstanding invoices, well, I would! So, I don't know if postponing invoicing could happen either.

I could, and will, try to put off work that could put me over the median until after I file. That should be ok, right?

[DebtStinks]

I could, and will, try to put off work that could put me over the median until after I file. That should be ok, right?

I'm doing exactly that right now... lost a couple of big contracts that I hope to regain in the next year but nothing firm. Right now I'm just waiting for my income to drop off so we can file in June without any issues.

[uneasy]

You can't hide checks that you have... that is fraud. But if you held off on billing them that might be different. Here is an article that I came across today that deals with earned but not paid income:

Is Income Earned Prior To Bankruptcy But Paid After Included In The Means Test?

Edit: Actually I think you would have to wait to even invoice them because your accounts receivable are a fair game asset.

Interesting article. Wish it supported my side!

[uneasy]

I'm doing exactly that right now... lost a couple of big contracts that I hope to regain in the next year but nothing firm. Right now I'm just waiting for my income to drop off so we can file in June without any issues.

I don't understand how this works. I thought I understand this 6 month lookback period, but now I keep hearing that they can look back one year or even longer. I got this one project in last month, but it looks like just waiting for last month to drop of the 6 month window still isn't enough. It looks like I could still be in trouble just by having this money in the bank 7 months before filing. What am I supposed to do?

[DebtStinks]

The look back on INCOME earned is 6 months. But the look back on insider payments of debt is one year and non-insider payments of $600 or more is 90 days.

[uneasy]

The look back on INCOME earned is 6 months. But the look back on insider payments of debt is one year and non-insider payments of $600 or more is 90 days.

Ok, but back to the income question: does it not matter then that 7 months before I filed I had $15,000 in the bank? If they look back past 6 months for anything at all, they'll see that money and won't that be a problem?