Questions

[LGT]

I'm just trying to figure this all out.

1. For the means test, can we count our son, 21 works and goes to school part time as part of our household or just children under 18?

2. The only asset we have is ESOP stock for the company my husband works for approx. $2000.00 right now. We have been holding on to this because we think we may have to get a transmission put into our van. Should we take it out and get it fixed or hold onto it in case we have to pay an attorney for BK? We only have one vehicle.

3. I had been working two jobs for the last 3 1/2 years. I quit one job the 1st of September. I just couldn't do it anymore. I have two herniated discs and it was too much heavy lifting. Is this going to affect anything?

Thanks, I'm sure I'll have more, but that's it for now.

[lrprn]

!

Welcome to the BK Forum, LGT! My answers to your questions are below yours in red:

I'm just trying to figure this all out.

1. For the means test, can we count our son, 21 works and goes to school part time as part of our household or just children under 18?

Does your 21-year-old son live in your home or is he living at school or in an apartment? If he lives in your home, then you can count his income and expenses into your family figures. However, if he's not living at home, even if you are paying almost all his expenses, then you can't. (I know, makes no sense. But that's what the latest bankruptcy court decisions have ruled.)

2. The only asset we have is ESOP stock for the company my husband works for approx. $2000.00 right now. We have been holding on to this because we think we may have to get a transmission put into our van. Should we take it out and get it fixed or hold onto it in case we have to pay an attorney for BK? We only have one vehicle.

If you liquidate $2K of stock into cash, be sure you do it at least 90 days before filing and spend all of it on fixing your transmission and/or other legitimate living expenses.

3. I had been working two jobs for the last 3 1/2 years. I quit one job the 1st of September. I just couldn't do it anymore. I have two herniated discs and it was too much heavy lifting. Is this going to affect anything?

One of the most important ways the current bankruptcy system decides if you file Chapter 7 (traditional bankruptcy) or Chapter 13 (wage earner bankruptcy) is how much income you (and if you are filing with your spouse), your wife have made in the last six months before filing bankruptcy and how that compares to the average income in your state. Since you just quit your job two months ago, you will be in MUCH better shape to wait for four more months before filing so that your income reflects your current income reality.

Thanks, I'm sure I'll have more, but that's it for now.

You are doing great already. LGT, because you are asking questions that will help you make the best decisions for your family. Another important part of doing that is to make appointments for free half-hour to hour consultations with 3-4 bankruptcy lawyers in your area. Ask each one what he/she wants you to bring with you to the consultation. You will be amazed at how much you will learn!

Hang in there - ask all the questions you want. We'll answer what we can - that's why we're all here. So glad you found us!

[SinkingFast]

I'm not sure about the status of you son as a dependent. We have kids in college that live at home, but they attend full time.

The Court, in many Districts is not allowing Debtor/Filers to claim "adult" dependent children who move away to go to college. Primarily because they do not physically live in the Debtors home for the majority of the year.

Not sure what effect part time student status would have on claiming an adult dependent child who continues living at home. That would be a question for an attny.

There have been several posts here recently of people working 2 jobs to stay afloat. Working 2 jobs has not yet been a criteria of excluding a Filer from seeking Ch 7 BK. This may be District dependent and/or Trustee dependent. Another question to ask BK attnys in your area.

I frankly don't know how the Court would view the ESOP. Basically, that's a company incentive stock savings program and may not be considered an exemptable asset. Again, ask an attny.

[CATCHMEIFYOUCAN]

Working 2 Jobs

I had been working two jobs for the last 3 1/2 years. I quit one job the 1st of September. I just couldn't do it anymore. I have two herniated discs and it was too much heavy lifting. Is this going to affect anything?

Hi, I had been working 2 Full time jobs for the past 10 years. I filed late August Ch13 (65-70g's unsecured debt). My income from both jobs was about 55-60g's. The means test proved I had no disposable income, but schedules I and J proved I had plenty!

The trustee practically wanted my whole paycheck from one of my jobs to pay back creditors (I had submitted a "good faith," plan to pay back $250 but he wanted $800). I was sent to the judge to confirm a plan. The judge didn't want to decide and asked we submit another pay plan, he also mentioned the courts do not force you to 2 jobs.

So end result, I quit one job, fell below the median and am filing for Chapter 7.

Good Luck, Catchmeifyoucan