Excess Income

[ELGUPASO]

I have a question that has come up. My attorney said that I have now a excess of $700 monthly after all expenses I listed. He mentioned that a personal loan that a family member of mine is not valid to put in the filing, because its a unsecured personal loan. We had put them down, since I had signed a agreement saying that I would pay $600 monthly to pay the money borrowed. Now he said we can't use that argument or put them in the BK file.

So, that being said what happens now if it goes like that into the 341 meeting with that type of excess? Would I lose the BK case? What can I do? We don't have medical insurance or dental, but how do I go about putting them in our expenses area? What other expenses can I list so I can bring down that excess income? How much can I put without bringing up red flags if I put amounts for those fields? My attorney did ask me if we have those expenses and I said NO, since right now we are sorta making it through and trying to save up some cash so when I start school mentioned below, we won't be cashless.

I am soon to start training from state funded program to go back to school. If I do that, my UI benefits will stop because they figure I cannot be looking for a job if I am going to school during the day. Therefore my income would drop significantly with my wife, since I would loose UI benefits or not receiving income anymore from UI. We would only be living off her income.

My 341 is March 12 and I am suppose to more likely start school April or late March. That is when I would loose my UI benefits or receive UI checks.

[Depressed]

Welcome to Ch13. You'll get to pay that $700 a month to the trustee for the next 3-5 years.

You need to find more expenses to list.

[ELGUPASO]

If I change my wife's paycheck deductions to get more deducted, will that be good as well for now and then change them after the BK?

[Llelxon]

Based on your post I think you filed to soon. Why not wait until you are in school and don't have your income?

I don't know about your area, but I listed a loan to a relative on my schedules. If you don't list it, it is still a preferential payment and the trustee can take the money back from them. I might talk a bit more with the attorney about that loan to a relative, as long as it is all on the up and up.

[Depressed]

If I change my wife's paycheck deductions to get more deducted, will that be good as well for now and then change them after the BK?

They'll be looking at your gross income. If you could increase spending on health care, disability and life insurance, it could help. As far as taxes, I was told that the trustee will take anything over a $1000 dollars when you get a return every year. (my state, other areas probably vary) Increasing witholding won't make a difference in the long run.

If you think you'll be forced into a Ch13, you might want to have new(er) vehicles before filing. I've been told it is really hard to buy a car while still in a 13. That would also increase your expenses.

[keepinitreal]

My 341 is March 12 and I am suppose to more likely start school April or late March. That is when I would loose my UI benefits or receive UI checks.

If you're going to lose your unemployment benefits (is that what UI is?) later this month or early next month, you should make sure your Schedule I doesn't include that income. Then you may have no disposable income.

[ELGUPASO]

If you're going to lose your unemployment benefits (is that what UI is?) later this month or early next month, you should make sure your Schedule I doesn't include that income. Then you may have no disposable income.

So even though my 341 hearing is March 12th, I can have my attorney take the unemployment income off Schedule I, since its going to stop in April?

[ELGUPASO]

They'll be looking at your gross income. If you could increase spending on health care, disability and life insurance, it could help. As far as taxes, I was told that the trustee will take anything over a $1000 dollars when you get a return every year. (my state, other areas probably vary) Increasing witholding won't make a difference in the long run.

If you think you'll be forced into a Ch13, you might want to have new(er) vehicles before filing. I've been told it is really hard to buy a car while still in a 13. That would also increase your expenses.

I know I didn't include any figures or expense on health care and other items, because I figure they will ask for receipts or something like that. So, how much can I put down so they won't be all suspicious?

[keepinitreal]

Your schedule I and J are for income and expenses from now on, not in the past.

You can amend them to remove income you won't be receiving and to add expenses such as health care, etc. you will now be having since you won't be paying your unsecured debt anymore.

Hopefully your attorney is earning his pay on this. Amending your petition will cost extra money.

[ELGUPASO]

What happens if I keep receiving Unemployment benefits even once I start school and I put down on the schedules that I am not receiving Unemployment?

I ask, because that is what I was told will happen if i start school or training. So, I just wonder what if they keep sending me Unemployment checks even after I start school (which I doubt). Will the trustee still look into our finances after the 341 hearing?

[keepinitreal]

Unemployment checks are temporary. Even if they continue while you're taking classes, they are scheduled to end on a specific date. Tell your attorney when your checks are scheduled to end.