Drop in income

[VirginiaGuy]

I met with my attorney today and he says that I'm good to go for a clean Chapter 7 because my average monthly income for the past six months is below the median for the state (only by a few hundred bucks annually, but it still comes in below the median), and my Schedule J expenses are more than my Schedule I income. But then I talked to an attorney friend who used to practice bankruptcy law in the state before she retired and she says that because I had more than a ten percent drop in salary this year, my annual income will be calculated by looking at my year to date income and prorating it for the rest of the year, which would still put me below the median, but which conflicts with everything I've read about bankruptcy. Is it possible that she's thinking of the way things used to work before the new bankruptcy laws took effect? I asked my attorney about this and he just sort of blew the question off and said that they look at six months of income and that I shouldn't worry about it. Anyone have thoughts on the subject?

[jribe]

it's six months income before filing.. did you say the friend used to practice bk law? A lot has changed since 2005. I would go with what the current BK lawyer is telling you

I met with my attorney today and he says that I'm good to go for a clean Chapter 7 because my average monthly income for the past six months is below the median for the state (only by a few hundred bucks annually, but it still comes in below the median), and my Schedule J expenses are more than my Schedule I income. But then I talked to an attorney friend who used to practice bankruptcy law in the state before she retired and she says that because I had more than a ten percent drop in salary this year, my annual income will be calculated by looking at my year to date income and prorating it for the rest of the year, which would still put me below the median, but which conflicts with everything I've read about bankruptcy. Is it possible that she's thinking of the way things used to work before the new bankruptcy laws took effect? I asked my attorney about this and he just sort of blew the question off and said that they look at six months of income and that I shouldn't worry about it. Anyone have thoughts on the subject?

[shabam]

6 months prior to your date of filing.

[JRScott]

It is a 6 month look back.

However if there is a significant difference between what you make now and what you made last year look for the trustee to look more closely so be ready to justify all expenses and prove income.