Income

[karm43]

I know I ask alot of questions. Do they always look 6 months back? What if 3 or 4 months was a small amount because of job loss? I don't know if i am gonna make it to end of Jan. I wish I could file now,but not the case

[karm43]

Also I have 2 suits im paying on cant save. I wanted to stop paying at least 2 months before i file so i could have some money for lawyer , wonder how soon it would take before they come after me. I know hard to tell has anyone else had to deal with this?

[newbie2]

karm43, was it your attorney that suggested you wait 6 months? If so, ask him/her if the lower income for the past 2 or 3 months would be enough to knock down your disposable income and means test income. Yes, they do look back 6 months, but for many people a lower income for just a couple of months is enough to drop things down.

As far as the suits you are paying on, there isn't enough info to guess what is going on. Were there judgments already in place? Or did you agree to a settlement before it got to that phase?

[karm43]

no im waiting. they are judgement on the 1 card owed 8660.00 they doubled it to over 16000.00 with interest the other was a place that bought my debt she threatned to come with sheriff and take everything nasty B did make arrangements before went to court but they are judgements. Didnt care what they take i was more worried about the neighbors lol embarrassing. I worry day and night.

[SunshineGal]

Hi Karm,

The means test will use a 6 month average of all income received for the previous months - ie: If you file in July, it will use income from Jan. through June. The schedule J will use the actual amount you're now receiving. It is possible to fail the means test but still get a chapter 7 based on the schedule J since there isn't enough income to fund a 13.

Hang in there! By the way, chances of the creditor actually having the Sheriff take your stuff are slim to none unless you have very valuable belongings. Don't lose any sleep over the threats, they are just that - threats.

[keepmine]

You do know there is no wage garnishment in Pa.?
I'd stop paying and close my bank account and just live on a cash basis until you file.

[karm43]

I know my mort come out of my checking every 2 week. I may do that like 2 months before i actually do it. They can freeze my bank account thiinking of putting in 1 of my kids name

[jetsfan2010]

Hi Karm,

The means test will use a 6 month average of all income received for the previous months - ie: If you file in July, it will use income from Jan. through June. The schedule J will use the actual amount you're now receiving. It is possible to fail the means test but still get a chapter 7 based on the schedule J since there isn't enough income to fund a 13.

Hang in there! By the way, chances of the creditor actually having the Sheriff take your stuff are slim to none unless you have very valuable belongings. Don't lose any sleep over the threats, they are just that - threats.

thats exactly how my attorney explained it to me when I spoke to him about my worries around the means test. great advice sunshinegal

[ValleYum]

I know my mort come out of my checking every 2 week. I may do that like 2 months before i actually do it. They can freeze my bank account thiinking of putting in 1 of my kids name

No!! Don't change the ownership on anything (bank accounts, cars, jewelry, etc.) until you ask your lawyer specifically about it. That can prove to be a big red flag to the Trustee and cause you more trouble than you can shake a stick at.

My thought would be just to keep 25 bucks or so in your account - so it will stay active and open so that you can easily come up with the 6 months of bank statements you will need when you file. Actually, that is one thing you can start ASAP - start printing the bank statements off now from January through June and do the same thing with getting your paystubs together. Grab a big file folder - LOL - you are gonna kill some trees!

Remember, you can get more than 1 free attorney consult, too.

[DirkDiggler]

It is possible to fail the means test but still get a chapter 7 based on the schedule J since there isn't enough income to fund a 13.

I thought you HAD to pass the means test to file a ch. 7....I was under the impression that if you didn't pass it, you HAD to file a 13, or is it if you have negative DMI on the schedule J they couldn't force you to do ch. 13?

[karm43]

I know Thanks just rambling

[karm43]

Maybe you can get 7 depends on secured debt alot

[newbie2]

I thought you HAD to pass the means test to file a ch. 7....I was under the impression that if you didn't pass it, you HAD to file a 13, or is it if you have negative DMI on the schedule J they couldn't force you to do ch. 13?

The means test is just one part of things, your schedules (income and expenses looking forward) are the other. Passing the initial means is just one less hurdle.