can we still file a 7? severance/new job?

[flower04]

Dh is being laid off in June. We are actively looking for work with several promising things on the horizons, but no offers. Our attorney said we'd wait 45 days after lay off and file a 7 (had planned to file a 13 TODAY! but plans changed when we found out about the lay off). We don't know for sure about severance, but probably 8-12 weeks.

How does severance factor into the "past income for 6 months" and if we get a job between during that 45 days, what happens? Do we file a 13?

In our current job, we are about $5K over the median income so we wouldn't pass the means test. In a new job, who knows, and we may be moving to another state.

I know my attorney can answer these but we are up to our eyeballs in attorney fees because we were all set to file a CH13 today, Friday 5/22, and we've been talking to her a ton the last week since we found out. I'd love to get an idea of what might happen without being charged $350/hr.


Thanks Again!

[kenshirley]

The last 6 months is the period before the month you filed.
Any severance will count as income whenever you got it within that 6 month period.
In our case my wife lost her job for medical reason and we had to wait for the income to drop off to file chapter 7. Our income now is only from retirement.
In a way you are fortunate enough to make a lot of money if you can be reemployed and many have a problem with that right now.
The problem is as you are aware that they look at the 6 months before you filed and do not look much at the future which is not good for many.
That severance package may well force you into chapter 13 as you were above the means for your area anyway without it I assume.
The good news is that if your job does not pan out or pay enough wherever you wind up you can always refile and go chapter 7 if you are under the means.
Personally I would not want to live a managed life being stripped to the bare bones in a chapter 13 and monitored all the time as many say they are here.