It's taken over a year to file bankruptcy

[Christine2]

Over a year ago I met with a bankruptcy attorney. We went over everything and all I had to do was fill out his paperwork and send in my information. I did that right away. Now that it's been a year, he is telling me that my income is too high for chapter 7 and I need to file chapter 13. Nothing has changed! If anything, my income is lower.

Is this normal? Should I get my retainer back and go somewhere else? By now my creditors have closed and charged off my accounts.

[justbroke]

Welcome to BKForum.

I don't know why it would take a year to file for bankruptcy. There must be something else underlying the issue.

For what it's worth the New Hampshire mean income is:

• 1-person: $80.695
• 2-person:$95,861

... and so forth. (Source: USTP Means Testing cases filed after 11/1/2023.) Even if I went back to the prior numbers for 11/1/2022, that median is $77,661 and $90,968 for a 1-person or a 2-person household, respectively.

I don't want to speculate as to the difference but maybe the attorney was waiting to see if your income would decrease below the Chapter 7 threshold. There are also other considerations, such as whether your disposable income still make it problematic (especially if you're single).

You have to go back to the attorney since they have "all" your numbers and can make the calculation. Please know that they look back 6-months and then multiply that gross-income number by 2. They also include your spousal income (if you're married). If you got married in the last year... ouch.

[Christine2]

It's been e excuse after excuse. He had covid. Then he went out of the country. Then he came back and was sick. Rhen he had a bunch if other cases. Then he had this. Then he had that.

Do they include spousalincome even if they aren't included in the bankruptcy? Why wouldn't he have told me all of this beforehand?

[justbroke]

Spousal income is included automatically even if the spouse is not filing. While this is the case, you can do "marital adjustments" to the extent that the spouse has personal debt and it is well documented.

It reads as though your attorney had/has too many excuses. While hindsight is 20/20 I would have been more forceful to file or asked him for the retainer back.

[Christine2]

I make about 60k as a teacher. My wife makes about 70k.

[justbroke]

If it's just the two of you, then you are certainly over-the-median for NH. To the extent that your non-filing spouse pays for her own individual debt (in her name only) your attorney may be able to use the marital adjustment. Other than that adjustment all the other income counts.

Have you already paid this attorney? I would want to shop around for a different more diligent attorney, but if you already gave them $3,500 I might try to ask for it back and still shop around. I'm not saying that a new attorney will say you can file Chapter 7, but may work the numbers (e.g., the marital adjustment) and may be able to keep you out of a Chapter 13. From the quick glance, you do not qualify for a Chapter 7 unless you can get marital adjustments.

[shipo]

Sorry, late to the party, I was out of touch for a few days.

Christine2, I have a very good bankruptcy attorney in Londonderry, NH, PM me if you want me to send you the details.

[Carmella]

See another attorney. This attorney hasn't helped you and led you along way too long without good information/answers. If you are not paying your credit cards they will sue you and you have to deal with going to court. You can stall them at the first 1-2 pretrials, BTDT. Definitely, find a better attorney and get the filing started before you have to go to court.