Means Test Past (past six months income)

[jkerr731]

I am on the verge of filing Ch. 7 myself. After meeting an attorney, he advised I would pass the means test for IL since I was unemployed for first six months this year and depsite wifes income we were under.

My questions is this truly valid that means test only averages the last six months only?? My spouse had and currently has a job and now that I am emplyed our monthly income exceeds the means but not an overage over the last six months as long as file in the nest three months.

Also, will bk have any affect on my mortgages? I am ususally about 30 days behind but I it seems some people elude to the idea that the mortage company may accelerate if aware of bk filing?

Thanks in advance.

PS this site is a great resource. Found one similar that helped me modify my mortgage.

Jason

[justbroke]

My questions is this truly valid that means test only averages the last six months only?? My spouse had and currently has a job and now that I am emplyed our monthly income exceeds the means but not an overage over the last six months as long as file in the nest three months.

Yes, but the U.S. Trustee (UST) can decide to dismiss your case under the "totality of circumstances". Not to scare you, but I have reviewed cases where the UST has sought dismissal of cases where the debtor received a new job (after being unemployed for months), just days after filing. The argument is that the "totality of circumstances" have changed.

Many times though, this doesn't even both the Trustee, but the one egregious case I saw, was a guy who filed his petition, and then, several days later, got a $140K/year job from IBM. I don't know about you, but that to me screams abuse.

Also, will bk have any affect on my mortgages? I am ususally about 30 days behind but I it seems some people elude to the idea that the mortage company may accelerate if aware of bk filing?

You absolutely positively need to be 100% current on your mortgages before filing, or the lender may ask for relief from the automatic stay, so that they have the opportunity to proceed with foreclosure. However, the lender can only foreclose based on the terms in your Mortgage/Note and under the terms of State non-bankruptcy laws. So, generally, they can't just foreclose for being 30 days late.

The other things with a mortgage is determining whether it is "worth" keeping the home. If the home is underwater by more than 10%, you really should let it go (as a financial decision). The other thing is, that you should pursue a "ride-thru" if it's available in your District. This "ride-thru" basically allows you to discharge the mortgage debt so that you're no longer responsible for it. However, you get to stay in the home so long as you continue to pay on-time.