Help ASAP?!? Compensation adjustment @ work

[maxfischer75]

Hi all,
I have most of my paperwork ready for my initial petition, but I haven't submitted it yet.
I just found out that I am getting a $2k raise @ work and a $1k bonus (payable before end of July 2010). Any sage advice on how I should report this - Form 22A, Sch. I, etc.? I don't pass the means test and have a no-asset case. Also I have a pending garnishment that is to begin with next paycheck on 7/22/10.
Thank you in advance for your help.

[SMinGA]

Confirm with your attorney - but you should probably file ASAP. If you file in July, the Jan-June income is what goes into the means test. So if you file in August the increase & bonus will make you over the means test by even more.

But if the raise is a sure thing, you'll probably need to amend (after getting a new paycheck at the new level) schedule I to show current income at time of filing. Since your income has already changed, just not yet reflected on a check stub in hand.

[maxfischer75]

Thanks
I'm filing pro se, but your advice mirrors the free legal advice I'm giving myself!
(you get what you pay for haha)

Also, I misspoke about the means test. I'm above median before the raise by less than $2k, but my 60-month DMI will be far below the 25% unsecured debt threshold even with the raise.

[SMinGA]

Will probably get less scrutiny if you file with June as the last look back month - rather than filing a month later and being above median by a larger margin.

Thanks
I'm filing pro se, but your advice mirrors the free legal advice I'm giving myself!
(you get what you pay for haha)

Also, I misspoke about the means test. I'm above median before the raise by less than $2k, but my 60-month DMI will be far below the 25% unsecured debt threshold even with the raise.

[maxfischer75]

I concur - would you still advise amendment of Sch I? Comp. adjustment is effective July 1, but my employer pays it retroactively with the first payroll of August.

[SMinGA]

That is one that requires actual legal advice I think. Since you have not filed (yet) perhaps take advantage of an initial consult or two? Call up some bk attorneys in your area. In the consult do not tell them you intend to file pro se - perhaps give the impression you are interviewing to find an attorney. Indicate you have reason to file in July (to keep July off the look back) and wonder how the raise will impact things...

Its a sticky area - you have not seen the check at the new pay level but officially are earning at that higher rate now.

I concur - would you still advise amendment of Sch I?

[starr4law]

Also, you may need to protect this future interest in earnings on Sch B/C. The question you need to ask yourself is "if I quit my job on the day that I file, what exactly would I receive from my employer." Would you receive some of that retroactive pay? Would you receive part of the raise? Even if you do not have an asset in your hands at the time of filing, but you are ENTITLED to receive it, you should exempt it.

Like the others have said, you need to get filed in June so you don't have to deal with adding it to the means test. Adjust Sch I only to the point that it discloses what your actual 60 days prior to filing is (so if you get some of the raise/money prior to filing, you need to show on Sch I). Also, on Sch I, there is a "other" box that is meant to discuss known income increases/decreases shortly after filing. That might be a good spot to mention that you are getting a raise, etc. While it is tempting not to disclose it, you could be asked to produce paystubs from the time of filing to your hearing and certainly they are not going to match the previous ones - better to bite the bullet in advance and be forthcoming with info, than be caught with your pants down at the hearing (especially if your Trustee is adverse pro-se people - many are).

Good luck.

[maxfischer75]

Thanks for the useful info and advice and well wishers, starr4law and SMinGA. I was leaning towards putting the comp adjustment in that "other" box - good to know that I'm on the right track.

[maxfischer75]

I appreciate all the feedback.
It's been indicated to me elsewhere that my circumstances lend themselves more to a ch 13 petition than a ch 7. Any experienced help would be valuable before I file. Here is the summary: gross is $2k over the median; after IRS allowances and one $50 deduction for Internet, there is $140 DMI (60 mo. 8,420). One-quarter of unsecured debt is $61,452. Monthly net income per sch J is $28.
I have constructive receipt of $77 of my compensation adjustment and I suppose that conservatively I have constructive receipt of a $1k bonus (receivable by 8/4). My salary will increase by $2k (health insurance will likely rise $1k @ 1/1 on the other end haha). Both of these items are reported to the trustee on sch I.
Our one vehicle is worth ~$4k (generously) and we owe $10k. I have a pending 25% garnishment from a deficiency on repossession of a previous vehicle (effective 7/22).
I work directly across the street from district bankruptcy court, so filing time is not a problem at all.
So in a nutshell, should I a) go back to square one and prepare ch 13; b) file ch 7 and expect a conversion; c) file ch 7 and expect no-asset no income case; or d) something hereunto unnamed but equally or more hideous?
Thank you so kindly.
PS I am undaunted by preparing inane schedule after asinine worksheet ad nauseum. I pretty much do that for a living hahaha.