Sorry I'm advance this is long.
So, I have a little bit of a tricky situation and 3 lawyers are giving me 3 different ways to go about it. I could use your help to see if anyone may have some input.
I live in Florida with a 3-person household – Median income limit is 89,908
My current salary is 89,600
The issue is the company I work for gives restricted stock units. They vest sporadically over time. When hired you get a certain amount that vest over 4 years then yearly or if you take another job or promo, you may get more.
I did receive some in November and will get more in May. In November I received about $9500-$10,000. This is pre-tax it is taxed as income on a separate paycheck but the money goes into a brokerage account. In order to get the money, you need to sell the shares (they use some of the shares to pay the tax) In November I am receiving less than ½ that amount about $4300.
Lawyer 1 mentioned these stocks could be an asset but when he did the means test, he calculated as income. For the means test he shows monthly income as $9,060.74. in reality it is $7469.81. In calculating my deductions (initially) he estimated $8676.24 which puts me at disposable income of $384.50.
I met with 3 different lawyers and have 3 different opinions:
Lawyer 1 – File chapter 13 the $384.50 would have my payment be around $500/month. Then in May when my RSU’s are less I can convert to a Chapter 7 or cancel and refile Chapter 7. He states file now to get the protection then we can amend. I started dealing with this lawyer in Sept. He was saying it could probably count as an asset but when he did the means the assistant counted it all together and he says that is what it is. I paid him $300 back than and that included the means test. Initially said I was close and since September made it like it could potentially be a 7 now, he is insistent it is only a 13.
Lawyer 2 – He agrees BUT stated that when we file the 13, he can automatically file to show my CURRENT income is less than what the 6 months shows to reduce my payment to approx. $200/month. I can also then if I wanted in May look to reduce it even further if the paystubs support. I mentioned the conversion and at first, he said no then said I could but it would cost more than a normal Chapter 7 which I understand. He said I can file now this way or wait until May but no guarantee what the #s will look like.
Lawyer 3 – says she is not saying the advice from #1 was bad – it could be the case BUT she feels she may be able to file under the 7 since my actual salary is under the median and this can be listed as an asset (that I would lose but be ok with loosing the $5200 that is left). She also said if I am not being sued, I can wait it out as well – no rush. I felt most comfortable talking to her.
Now I don’t mind paying a little I really don’t but I do not like the 5 years of a chapter 13 if I don’t have to. This is all consumer debt (credit cards and a personal loan).
Anyone have any recommendations? I feel with $384.50 disposable I am close. We did not do a detailed I/J form just yet only the 122A-1 & 122A-2.
So, I have a little bit of a tricky situation and 3 lawyers are giving me 3 different ways to go about it. I could use your help to see if anyone may have some input.
I live in Florida with a 3-person household – Median income limit is 89,908
My current salary is 89,600
The issue is the company I work for gives restricted stock units. They vest sporadically over time. When hired you get a certain amount that vest over 4 years then yearly or if you take another job or promo, you may get more.
I did receive some in November and will get more in May. In November I received about $9500-$10,000. This is pre-tax it is taxed as income on a separate paycheck but the money goes into a brokerage account. In order to get the money, you need to sell the shares (they use some of the shares to pay the tax) In November I am receiving less than ½ that amount about $4300.
Lawyer 1 mentioned these stocks could be an asset but when he did the means test, he calculated as income. For the means test he shows monthly income as $9,060.74. in reality it is $7469.81. In calculating my deductions (initially) he estimated $8676.24 which puts me at disposable income of $384.50.
I met with 3 different lawyers and have 3 different opinions:
Lawyer 1 – File chapter 13 the $384.50 would have my payment be around $500/month. Then in May when my RSU’s are less I can convert to a Chapter 7 or cancel and refile Chapter 7. He states file now to get the protection then we can amend. I started dealing with this lawyer in Sept. He was saying it could probably count as an asset but when he did the means the assistant counted it all together and he says that is what it is. I paid him $300 back than and that included the means test. Initially said I was close and since September made it like it could potentially be a 7 now, he is insistent it is only a 13.
Lawyer 2 – He agrees BUT stated that when we file the 13, he can automatically file to show my CURRENT income is less than what the 6 months shows to reduce my payment to approx. $200/month. I can also then if I wanted in May look to reduce it even further if the paystubs support. I mentioned the conversion and at first, he said no then said I could but it would cost more than a normal Chapter 7 which I understand. He said I can file now this way or wait until May but no guarantee what the #s will look like.
Lawyer 3 – says she is not saying the advice from #1 was bad – it could be the case BUT she feels she may be able to file under the 7 since my actual salary is under the median and this can be listed as an asset (that I would lose but be ok with loosing the $5200 that is left). She also said if I am not being sued, I can wait it out as well – no rush. I felt most comfortable talking to her.
Now I don’t mind paying a little I really don’t but I do not like the 5 years of a chapter 13 if I don’t have to. This is all consumer debt (credit cards and a personal loan).
Anyone have any recommendations? I feel with $384.50 disposable I am close. We did not do a detailed I/J form just yet only the 122A-1 & 122A-2.