Attorney consult follow up/ Ch 7 eligibility issue...

[no_it_all]

If you were OVER the median, lots of people suggest buying a new car, since that expense would be deducted from your disposable income, therefore possibly helping you 'pass' the means test.

The people suggesting this have never completed a Means Test Calculation nor do they understand how it works.

[SamanthaJones]

The rest of us assumed the poster meant $65K was an annualized number.

If not, please share some of that money with us who are less fortunate?

[HHM]

If your six month income was 65K there is no way you are eligible for Chapter 7 and your attorney is correct in suggesting a Chapter 13...

That was my first thought, everyone that has posted so far is working off the assumption that you "intended" to say that your "annualized" income is $65K, but strictly speaking, the way you wrote it indicates that between Aug-Jan, you made a total of $65k in just that period.

If it's that later (i.e you earn roughly $10,833 per month), then the attorney is absolutely correct; but if it is, as I suspect, that you earn more like $5,416 per month, ($65K per year) then you should probably seek advice from another attorney.

[CPO]

Wait a minute...if the median income for a HH of 4 in PA is 70K, how can her petition be immediately rejected for a BK7? Where's the presumption of abuse?

I would think a good trustee MIGHT be able to make a case of it IF they could show that the family has loads of disposable income and can pay bills with little concern.

That would take some discovery...not a 30 min consult with a BK attorney...

I'm suspicious like most others here.....

[CPO]

Oops...I get it. If their income for 6 months was 68K, then there is a problem....no BK7...

Perhaps the figure should be 68K annually?

[reallynervous]

I am so sorry for not being more clear. Yes, the $65K is an annualized figure. I added up the income for the aforementioned 6 month timeframe (approx $32K), then divided it by 6 to get a monthly number, then took that times 12 to get an annualized figure to compare it to our state median income.

Was that an okay way to to figure it?

My apologies again for not stating that better the first go around. The attorney was clear as I gave him both the 6 month and the annualized numbers.

reallynervous

[no_it_all]

Ok, that makes more sense...Hey, why don't you grab a copy of form B22 and just fill in the numbers? You will quickly see that you qualify for a Chapter 7. I have absolutely no idea why your attorney would suggest a Chapter 13 unless he/you want to keep some assets. In a Chapter 7 most assets are liquidated and sold, with the proceeds going to creditors. Maybe you have lots of "stuff" that you would like to keep?? Otherwise, I dunno why he would suggest it...<shrugs>

[SinkingFast]

I have absolutely no idea why your attorney would suggest a Chapter 13 unless he/you want to keep some assets. In a Chapter 7 most assets are liquidated and sold, with the proceeds going to creditors. Maybe you have lots of "stuff" that you would like to keep?? Otherwise, I dunno why he would suggest it...<shrugs>

PA can use either State or Federal Exemptions. House is at 125% LTV ratio with older cars. They should be able to protect pretty much anything they wanna keep.

[bige1030]

The people suggesting this have never completed a Means Test Calculation nor do they understand how it works.