Schedule J if I am scheduled to be laid off

[tdawg]

Here are my details. I bought a new car like 4 months ago, and was supposed to have 5 years of financing at 3.9% - the dealership kind of scammed me and I ended up with a 3 year loan at 0%, which makes my payments ridiculously high - just over $1,000 per month. So, I have been paying on this car since then and stayed current, and I have stayed current on my mortgage. However, I have become behind on my credit cards, etc. I was recently thinking about my options to file chapter 7. I even paid an attorney the initial retainer fee. I am going to talk to him Tuesday, but I wanted to get some info on my own first.

I am just under on the means test if I extrapolate that payment out to 5 years - it's like $585/month. I just found out I am going to be laid off in a couple months, but I will receive a bonus and some severance pay. I wanted to try to figure out what I should do here. If I wait until after my last day, the bonus will could in my last 6 months of income, which will push me over the limit. But if I file soon, then on the means test I should be able to include $585/month of my car (I think), but how does the Schedule J work?

The means test is supposed to be based off of your last 6 months, but what about the Schedule J? It's supposed to be looking forward, right? So, does that mean right this second, or the foreseeable future? I know I won't have a job in two months, so is there extenuating circumstances for that?

Would the trustee take the bonus and the severance pay?

All advice is appreciated. I'm just trying to figure out what I should do.

[lifelesson]

we made notation on ours that i work prn ( I could easy have no hours for a pay period) and my hubby was due to take a 5% pay cut.
I've been busting hind end to snag up extra hour.
Don't know if it has helped us. we're still waiting to find out.

[BKdinOhio]

Do you have the truth in lending statement, and stuff you signed in re: the car payment. You won't be able to claim that 500 /month car payment when your actually paying 1,000 a month, that's could be considered a fraudulent claim.

The dealer could be in the wrong if everything you signed was for the 5 year loan, not the 3 year loan. Then the loan itself could be invalid.

[tdawg]

The dealership did NOT do anything illegal. They kind of pulled a switch-a-roo. I originally signed a 5 yr loan with them. Then a few days later, they said that details of my loan had changed and I had to come in. Over the phone, they said the apr would be 1% higher, but it would still be for 5 years. Then, when I came to the dealership, they said that they could not do 5 years financing, but it was 3 years at 0%. I signed all of the paperwork. Looking back on it now, I regret it, and it was stupid of me, but what's done is done.

I thought if you had 33 loan payments left, that for means testing that you were supposed to extrapolate that over 60 months. Basically take monthly payment x 33 / 60 = amount you can list for car payment. Is that true? So, in my case I would list $585 instead of over $1,000. Is it calculated differently for a Schedule J? So, for the Schedule J, I would list over $1,000/month?

I am thinking that a trustee would look at that large of a car payment as an abuse if I continue to pay $1000/month for a car when I am becoming unemployed and filing bankruptcy, and I would understand their viewpoint. So, I'm trying to figure out what I should do. Starting November, I will just be getting a couple thousand per month in unemployment. It will be a little less than my mortgage payment. So, I will obviously be in the red, and the severance and bonus will start dwindling fast.

So, I'm trying to figure out what I should do. If I file chapter 7 now (as soon as the lawyer can), then either reaffirm the car or let it go or see if they'll extend the terms, what would I put on Schedule J for my income and car expenses? Would I put my current income (which I have a letter that states I will be losing and will change to be unemployment)? Or should I use what my unemployment will be? And I put the current car payment even though there are less than 60 payments left?

Does anyone have any knowledge about how the severance pay and bonus will impact everything if it occurs after I file?

[tdawg]

OK, I think I figured out some of these answers, and I want to post here to verify and also if someone else encounters the same situation so they'll know.

First of all, I was thinking that a Schedule J was for both income and expenses. Now I know that the Schedule I is for income, and Schedule J for expenses. The following are things I think are true, but please feel free to correct/advise.

I should put the whole car payment amount on the schedule J (it's just over $1000/month). But I would put $585 (amount of payment x # of payments left /60) on the means test.

Then for income, on the means test, I would put the average for the last 6 months. And on the Schedule I, I put my current income, but then in section 17, I can write in that I have been given notice that I am laid off as of the following date.

From what I've read, I'm thinking the trustee would not take my severance pay or the bonus I'm given after my last day, so if anyone has any insight on that I'd appreciate it.