90 day before filing

[cowgirlup289]

Hey everyone, my boyfriend's case if finally over. A year later, practically, and it closed. Yay! This forum rocks, by the way.

However, now I have a question for my sister in NY who is in a sticky situation with being 2.5 years behind on her mortgage, hubby doesn't work, she has been working and they have 2 kids. I know NY is different, but I told her how my man's lawyer said he couldn't make a dime for 90 days before filing, to file Chap 7. She thinks that's different in NY and I told her, it's federal law, not state law. I explained about the Means Test, and explained that if she's making money, they will try to force her into a Chap 13 possibly?

Am I on point here?

[brokejoker]

It would depend on what his oncome is, what her income is, and what their expenses are. The first litmus test is the means test. If they are under the means test with either just her working or with them both working on the 6 month look back then there is no presumption of abuse in filing chapter 7. If his additional income makes them over for the median income then they may pass with their expenses.

They should really consult an attorney and find out what the means test figures are and if their income and expenses will qualify them for a chapter 7.

[DIY]

I told her how my man's lawyer said he couldn't make a dime for 90 days before filing, to file Chap 7.
Am I on point here?

The period to determine income is six months prior to bankruptcy. You double that figure to come up with the annual income. If the attorney recommended a person not bring in income for 90 days prior to filing, that meant that the income was already at the max for the means test. However you need to look at the disposable income in tandem with the income in order to determine whether a person can file for Chapter 7. Some attorneys don't seem to want to do that extra calculation, and simply turn people away from a 7 on income alone.