Houston we may have a problem !

[bearzdb]

I got my 341 meeting on june 29th.
Total debt 12k no assets
Total income is $692 a month and after expenses I break even.

Here is the problem I start a new job on June 17th which will pay 1800 a month does anyone see this being a problem? Should I let my trustee know? What can happen in a case like this?

[dontburnthep]

They will ask you if your circumstances have changed at your 341. Yes, you will have to disclose it. If you have an attorney, do they know?

[bearzdb]

filed pro se just wondering if they can dismiss the bankruptcy

[free2breathe]

I think they would be more likely to push you into a Chapter 13 than to dismiss your case.

[IamOld]

Hi - in IL for a single filer the median income is $46,355 - $1,800 per month (gross???) times 12=$21,600...you should be good for a 7. Even if you DOUBLE your 1,800/mo, you would still be under the IL median.

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[bearzdb]

i think i should be okay it's just that i don't really have much debt 12k

[IamOld]

I think, bearz - that wiser heads than me said more than once that the level of absolute dollars doesn't matter - what matters is what it does to you!

[sh9730]

IamOld,

Dont forget there are two pieces to the determination of which chapter....median income, but ALSO Disposable monthly income. BUT, Bearz, looking at what you ve posted, you may WANT to dismiss your case voluntarilly....as using 3% minimum monthly payment on your 12K debt, with the new job you could probably afford it and avoid the hit of BK on credit....although since you have filed that damage may be already done. Also, if you are behind on the bills and threatened with lawsuits etc...you wont be able to catch up quickly on the 1800/month.

But, as someone else said...you might get pushed into a CH13 since your DMI might be too high...

[IamOld]

IamOld,

Dont forget there are two pieces to the determination of which chapter....median income, but ALSO Disposable monthly income. BUT, Bearz, looking at what you ve posted, you may WANT to dismiss your case voluntarilly....as using 3% minimum monthly payment on your 12K debt, with the new job you could probably afford it and avoid the hit of BK on credit....although since you have filed that damage may be already done. Also, if you are behind on the bills and threatened with lawsuits etc...you wont be able to catch up quickly on the 1800/month.

But, as someone else said...you might get pushed into a CH13 since your DMI might be too high...

VERY true!!!! Thank you!!!

Perhaps Des could comment?

[Cavedog]

Hey Bear,

Now that you are getting a new job, are your expenses going to increase because of it? I agree that even though your income looks good, if your current expenses are $692 a month and remain $692, then your dmi would be high. Since your income is increasing by approx $1100 a month, are you able to make smart decisions that would improve your lifestyle by spending enough to get your dmi reduced?

$1100 a month more is what you are looking at.
Increased taxes on your larger income will lower that some.
Are you able to get healthcare insurance with your new job? (I dont know if you already have that covered some other way).
Are you living with parents now or friends? Maybe move out into your own place or split a place with a roommate? That would decrease your DMI even further, especially with utilities..
Do you own a car now? Get a small vehicle loan(1-2K or so tops) and now you can deduct all types of vehicle expenses.

Maybe someone will jump in with some advice on this, but my thinking is that if you are currently paying out only $692/month in expenses, there must be a lot of things you are doing without that you might want to start doing, thus decreasing the DMI when your income gets increased.

I would caution though on trapping yourself in a corner. That new job could get cancelled the day you start, and now you might be stuck with new bills that cant be discharged, so whatever you do dont get trapped in a worse situation.

Good luck!

[bearzdb]

bump for any one else who has an opinion

[newbie2]

bump for any one else who has an opinion

You had an excellent response from Cavedog (above) and I think we would all agree: Now that you will be making more money, you can start to live "normally" (IE: Have a budget for rent, utilities, etc.) If the trustee asks if anything has changed then answer truthfully, but I would prepare a forward looking budget for your new income. (Check out rental prices, things like that) It won't take much to eat up that $1800 per month in income.

You should be just fine. That isn't a huge amount of income and any trustee will know that you'll use most of it just for the bare living necessities. Please also know that you cannot be forced in to a Chapter 13. They are voluntary.

[bearzdb]

thank you very much for the responses