due to preferential payment issues we are looking to file BK sometime next year. my wife is currently a teacher and i am hoping to land a teaching job as well. if i am lucky enough to get hired then both my wife and i would make almost $110k per year combined gross. i believe that would/may put us over the means test amount. however, as a teacher, we can elect to get paid in 20 payments over the course of the school year (instead of 26)... mid september to mid june and then NOT get paid over the summer. so, my question is... if we do that and then file in the first 3 months of the school year... our prior 6 months would only add up to be about $27k combined because it brings those 3 dead months into the average. even though our next 6 months would be $55k. any problems with that? thanks for your help.
-
-
I think this is a potential issue. What does your lawyer say? The means test is only a part of the equation.
How many are in your family? I think we have the highest median in the country.
How teachers' salaries are handled may be by district. Similar q's do pop up from time to time.
Good luck. Worst case scenario is... you get a job
Keep On Smilin' -
Opting for the 20 payments over the year and filing when the 3 months of no pay counts towards your 6 month window is a valid tactic. But, as keepsmiling alludes to “the means test is only part of the equation”. When you complete Schedule I you will be averaging your true income over 12 months. So, while you may pass the “presumption of abuse test” you will still have to pass the “totality of the circumstances” test by showing in a real time budget that you cannot afford to pay your creditors in the context of, say, a Chapter 13.
How much is the preferential payment? Over what period of time did you make this payment - was it monthly or a lump sum?
Des.Comment
Comment