Income dates and filing...

[Klesko]

I need to clarify some income issues. If everything works out I plan to file first of Sept and we should be slightly below the median income, say by about 1k. But I need to clarify some of the timing on paychecks.

Lets say I file Sept 5th, to my understanding all income from March-August will count against my income calculations for Median test and if needed the means test. However lets say I get paid on Sept 1st for 2k which would put me over the median income by 1k. Would that check be included for the income test or not? My understanding is only the prior 6 months count towards my income, meaning any checks for my job from March 1st to Aug 31st.

Am I right or wrong?

[JoeBankrupt33]

You are correct. The only income on the means test is from the 6 calendar month period that ended the month prior to you filing.

[berrymom35]

Are those who are just a hair under the median scrutinized more heavily than those who are well below it? I swear..we are like $100 below...!

[justbroke]

Are those who are just a hair under the median scrutinized more heavily than those who are well below it? I swear..we are like $100 below...!

No. One of the major triggers for the wrath, is being over the median or have a sizable amount of unsecured debt to discharge. There is no really clear line of what is "sizable", but $100K in unsecured debt will surely bring the wrath of the UST him/herself upon thee.

Also, you could just be subjected to the random audit.

[music12]

how do you know if the wrath of the trustee is upon you? would they say something before the 341 or could they surprise you there?

[justbroke]

how do you know if the wrath of the trustee is upon you? would they say something before the 341 or could they surprise you there?

Maybe wrath is too strong of a word. Maybe I should say "peaked the curiosity of the UST"! They become "interested" in cases usually before the 341 Meeting. If the U.S. Trustee is "interested" s/he or their attorney will be at the 341 Meeting. In some cases, the U.S. Trustee may ask for additional information before the 341 Meeting but not in all cases.

Most debtors have nothing to worry about with the U.S. Trustee getting "interested" in their case.

[music12]

so if you have over $100K in unsecured debt but almost no income, what are the chances the UST or just the chap.7 trustee would be "interested"?

[justbroke]

so if you have over $100K in unsecured debt but almost no income, what are the chances the UST or just the chap.7 trustee would be "interested"?

Chances are high. The U.S. Trustee is always interested in large amounts of unsecured debt. This is even moreso when you have little to no income. The UST wonders how you ran up debt that high... unless it's medical debt. If it's credit cards and not related to medical matters, s/he is going to wonder if you ran up all that debt on the "eve of filing" bankruptcy. They are going to wonder if you knew you couldn't afford all that, but purchased anyhow.

Think about it. If a person making $25K a year runs up $100K in unsecured credit card debt... what does that mean? If you count my lien strip, my unsecured debt is only twice my income (and my income is very high).

The Chapter 7 Trustee is worried about administering the estate -- if it has assets. The U.S. Trustee is worried about abuse.