Chapter 7 income question / keeping house

[Epic]

I am preparing to finally file BK7 within the next few months and had a general question about income. I am currently employed by my familys business and do receive regular pay checks. However, until recently, these pay checks were simply pseudo deposited (deposited and quickly taken out) into my checkig account to help resolve another situation. Now that this is resolved, I no longer need 'income' as every last dime of my expenses, including housing, can be paid for by my father (owner of the business and thus saving personal income tax) Due to a default judgement, I am also playing checking account roulette and am running out of options to deposit my pay checks. Should I continue to need pay checks, they can be whatever amount I need, but now that my prior situation is done, do I still need to show actual steady income in order to file BK7 with the intention of keeping my home. This judgement is like a black cloud on any bank account I open and I would like to avoid having one altogether. My concern is when I do file BK7, that the court will look and see that I have no steady income and not allow me to keep my house even though I am current?

*I live in Cook County IL and my current checks are $42,250/yr which is considerable more than I need. From what I found and I am new to this, the Median Chapter 7 test in IL is $45,941. Does this mean I still barely qualify at my current pay rate?

[backtoschool]

You will have to reaffirm your mortgage in order to keep the house, and in order to reaffirm the mortgage, you need to prove that the mortgage payment will not cause a financial "hardship" for you. If you do not have any income, that will be very difficult to prove, and the judge and your bk lawyer will most likely not approve your reaffirmation.

[despritfreya]

You will have to reaffirm your mortgage in order to keep the house.

There is nothing in the Bk Code that requires one to reaffirm a mortgage. I never advise my clients to sign reaffirmation agreements on mortgages due to the potential liability down the road.

If you intend to keep the home you can "retain" and continue to make voluntary payments. Since a Chapter 7 is a snapshot in time it does not matter if you do not have the current ability to pay. A Trustee might inquire at the 341as to how you are managing to keep the house current. There is nothing wrong with stating that your family is helping out.

Just remember, if your family has routinely helped you over the 6 month prior to filing, that is "income" and must be disclosed on Form 22, line 8. This may or may not throw you over median income thus requiring you to complete means testing to "qualify".

Des.

[backtoschool]

There is nothing in the Bk Code that requires one to reaffirm a mortgage. I never advise my clients to sign reaffirmation agreements on mortgages due to the potential liability down the road.

If you intend to keep the home you can "retain" and continue to make voluntary payments. Since a Chapter 7 is a snapshot in time it does not matter if you do not have the current ability to pay. A Trustee might inquire at the 341as to how you are managing to keep the house current. There is nothing wrong with stating that your family is helping out.

Just remember, if your family has routinely helped you over the 6 month prior to filing, that is "income" and must be disclosed on Form 22, line 8. This may or may not throw you over median income thus requiring you to complete means testing to "qualify".

Des.

I totally agree with you Des. I was assuming the OP wanted to know if he could specifically reaffirm with no income.

[Epic]

I totally agree with you Des. I was assuming the OP wanted to know if he could specifically reaffirm with no income.

Thank you, yes. This is exactly what I am looking for. Can I reaffirm my house (which I am and have been current on) with no income? My family will be paying my mortgage, I understand that this will need to be disclosed as income, however

[tcreegan]

Hi Epic,

Short answer: No

Longer answer: No need to, check out despiritfeyas post

Good luck w. your filing, I bet it will be nice to not have that judgement as an anchor around your neck.....

Tom in Colo