Newbie with various questions

[charredswife]

My husband and I filed Chapter 7 on Monday (3/23) and being the worry wart that I am, I have a few questions.

1) I received around $2658 from an annuity in January after my grandmother passed away. Is that considered income? Do I need to report that anywhere? I don't remember being asked about any "extra" money we received before filing and just thought of it today as I was going through bank records.

2) We have been living off my husband's part-time job income since October when I lost my job. We were barely able to scrap together our mortgage payments, nevermind trying to pay credit cards or car loans. Obviously, this put us well within passing the means test. However, my husband just got a second, full-time, job. He started about a week and a half before we filed. With both jobs he will be making around $2500 gross each month. We told our BK lawyer what his pay rate and expected hours will be, but we don't have a pay stub yet. How will this affect our bankruptcy?

3) I haven't paid on my car loan in several months and am over $800 in arrears. I plan on surrendering the car. However, today I got a call from the receptionist at our lawyer's office saying they received a letter from Chase (my auto loan people) and that I needed to catch up on the arrears. Huh?? I thought the point of bankruptcy was that I don't HAVE the money to pay the loan... I requested to have my lawyer call me back to explain further, but who knows if/when they will do that (our lawyer is kinda flaky and disorganized. I'm not overly impressed, but she was cheap). So, what are your thoughts?

Thank you in advance for your responses!

[lrprn]

1) I received around $2658 from an annuity in January after my grandmother passed away. Is that considered income? Do I need to report that anywhere?

Yes, it's considered income. And yes, it needs to be added to your gross income on your bk forms, so your lawyer needs to file amended forms before your 341. Contact her immedaitely with this news.

We told our BK lawyer what his pay rate and expected hours will be, but we don't have a pay stub yet. How will this affect our bankruptcy?

Since your husband didn't receive a paycheck before filing, there's $0.00 to add to your filing income.

However, if your trustee asks you both under oath at your 341 if your financial circumstances have changed since filing, you either have to tell the truth and say yes, or lie and risk committing bk fraud by lying under oath. I would recommend telling the truth.

Although in Ch 7 your bk estate is set on the day of filing, there is case law in some bk districts that allows the trustee to take significant new income that starts between filing and closing into account. This is why most bk lawyers advise not getting paid from a new job until after the 341 is held.

I haven't paid on my car loan in several months and am over $800 in arrears. I plan on surrendering the car. However, today I got a call from the receptionist at our lawyer's office saying they received a letter from Chase (my auto loan people) and that I needed to catch up on the arrears. Huh??

Did your filing papers indicate you intended to surrender the car?

I requested to have my lawyer call me back to explain further, but who knows if/when they will do that (our lawyer is kinda flaky and disorganized. I'm not overly impressed, but she was cheap). So, what are your thoughts?

My thoughts are that you get what you pay for.

[OhioFiler]

It's difficult for me to imagine filing BK and not remembering receipt of a $2,600 one time disbursement just 2 months prior.

[StartingOver08]

If you are surrendering the car, there is no need to pay the arreage on it. Check your petition to see what was filed on your Statement of Intentions. Your attorney should have provided a copy of the entire petition to you. If not, you can download it from Pacer. (Search Pacer on this site to get instructions).

1) If your petition says you intend to surrender the car, then you do not need to do anything other than make arrangements with the lender to surrender, at your convenience.
2) If you petition says you intend to keep the car, either thru reaffirmation or redeemption, you need to contact your attorney to change the statement of intentions and file the new one with the court.

As to the extra income, yes - make sure you modify your petition prior to your 341 with the additional income. Good luck!

[charredswife]

It's difficult for me to imagine filing BK and not remembering receipt of a $2,600 one time disbursement just 2 months prior.

I used it immediately to pay my mortgage, utilities, etc. So it's not like it's been sitting in my account the whole time or anything. The last two months have been rather crazy for us, and when I get really stressed I am forgetful (like walk into a room and forget why I am there kind of forgetful). I have already contacted my lawyer and let her know about it.