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Duh! Did I just finally have a light go on?

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    Duh! Did I just finally have a light go on?

    As per my previous posts, husband and I are trying to pre-plan a Non-consumer Chapter 7. I finally found a law office in North Carolina to correspond with me via e-mail regarding this, because I knew that the only important thing was what the local courts felt about DMI in a non-con bk7. The para-legal I communicated with said the means test doesn't apply, but Schedules I & J do.

    Since the means test does not apply, which is a six months look back at my husbands income, and Schedules I and J do, which are current and forward looking, does that mean he could earn money closer to time of filing? We are trying to see if we can get all the legit uses of the money (dental work, glasses, moving van, bk atty, rent deposit, etc.) and then wild card any extra cash since we will be using fed exemptions.

    I guess what I am saying is if we legitimately use up my husbands pay check and our rental income, so we don't have unaccounted for cash, then it doesn't matter what his six months prior income is, as long as we are very low DMI on our Schedule I & J at the time of filing?

    #2
    Hi StrawberrySu,

    You are on the right path! Legit expenses and document where the money went.

    Glad you are making progress!

    Tom in Colo
    Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

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      #3
      Originally posted by tcreegan View Post
      Hi StrawberrySu,

      You are on the right path! Legit expenses and document where the money went.

      Glad you are making progress!

      Tom in Colo
      Thanks Tom, I hope it is progress. It just seems like there are huge questions to be answered, so we make the right moves going forward.

      One concern about Non-consumer is if our rental property in short sale contract goes thru we will no longer qualify for a non-consumer. The mortgage company is just now asking for all the paperwork (pay stubs, tax returns, etc), and we have a closing date of April 30. So I am hoping it won't go thru and we can cancel the listing agreement. I am going to advise realtor now that it is to mt detriment to complete a short sale, and will not pursue it once this contract expires. My only worry there is it will light a fire under her to make this the fastest short sale in history.!

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