New Income prior to discharge and Reaffirmation Hearing

[Chuck]

Here is the deal.

I have a reaffirmation hearing on September 9th. My schedules show -348. If i present more income due to a new job as evidence to reaffirm my car can this affect my discharge or reopen the trustee's eyes to my no asset chapter 7?

Thanks

[lrprn]

I have a reaffirmation hearing on September 9th. My schedules show -348. If i present more income due to a new job as evidence to reaffirm my car can this affect my discharge or reopen the trustee's eyes to my no asset chapter 7?

Three questions first....

(1) How much more income do you have now over what you filed with?

(2) What are you trying to reaffirm?

(3) Why do you feel you have to reaffirm this asset's loan?

[Chuck]

1. About $600 per month

2. House, Car, Tractor

3. Lawyer says in this state if you do not reaffirm, you have to release.

[Chuck]

Anybody got an answer on this?

[whipster1]

Maybe you can adjust your expenses upward to eat the rest of the income. Insurances, charitable tithing, electric bill, car expenses...

The ideal I/J number is zero disposable if you can manage that.

[music12]

it's a tough question. technically, what you earn after you file is not relevant - the schedules I and J show income and expenses current as of the filing date. still it might be a risk to say you have more income. do you trust your lawyer enough to ask? the best way to go could very well depend on who the judge is and who the trustee is, and their relationship with your lawyer...

[Chuck]

Even with the new income, I am still under the median.

Does this matter?

Why would they even redo the schedules?

I am very confused as to what goes on at this hearing now.

[music12]

it depends on what the question is. if you had +300 disposable income on your schedules, you might have been pushed into a ch13. you weren't (to go to a ch13 the UST would have had to file something by 10 days after your 341).

in a reaffirmation, the issue is supposed to be whether you will be able to keep up the payments. so it's relevant but does conflict with the ch13 issue.

but you already knew that, which is why you posted the question in the first place. it's hard to answer.

[Chuck]

The information is all over the place. I cannot find one instance of what I am worried about happening.

I have even found instances on this forum where the judge told the person they would not allow the reaffirmation unless the person could prove more income.

I don't know what to expect.

[lrprn]

1. About $600 per month

Ok, that's another $7,200/year. Have your other expenses changed since filing?

Btw, it won't matter that your increased income is less than the median for your state if you show more than $150/month disposable income on a reworked Means Test and Schedules. That's what's going to determine if bringing your increased incoem to the reaffirmation hearing will cause your trustee to lodge an objection and petition the court to challenge your Ch 7 filing.

2. House, Car, Tractor

Tractor.....are you talking a true farming tractor (typically worth many, many thousands) or something else more consumer-like (for ex, a lawn tractor for yard work and mowing)?

3. Lawyer says in this state if you do not reaffirm, you have to release.

Did you speak with any other experienced local bk lawyers besides this one? If you did, what did they say about reaffirmation?

[Chuck]

Wife is due in December for baby #3. Other than that no new expenses.

Yes farming tractor worth about 16-17k owe 15k

No. My lawyer is pretty much the bell cow of BK lawyers in this area.


I thought BK was for everything up to the date you filed. Why does the extra income matter?

I was never worried about this before until I heard something from a friend.

I thought for sure I would come here ask the question and everyone would say he was wrong for sure.

Also you may want to know, I have not started the job yet. If everything goes well I would start August 24th. Hearing is scheduled for Sept 9th 60 days is Sept 14th.

[Chuck]

Finally talked to Lawyer about this.

She says even if I got a job with a million dollar a month salary they could not convert the to chapter 13.

Says the only new money that can be factored after the date of filing is windfall sums, and job income of any amount is not in this category.


I feel much better now.

[OhioFiler]

1. About $600 per month

2. House, Car, Tractor

3. Lawyer says in this state if you do not reaffirm, you have to release.

Release is not a legal term. When you file you have two choices on Schedule 8: Surrender or Retain. This is probably what your attorney meant.

If you choose to retain then you have 3 choices regarding this choice: Redeem, Reaffirm or Other (lien avoidance).

Keep in mind Schedule 8 is your STATEMENT OF INTENTION, not your statement of must do. You can change your mind. Many people intend to reaffirm but never do. I would recommend this course.