Question Means Test Chapter 7

[jasahj]

[Phillymanhere]

Ok, the short answer is don't worry about your future income. You can make a ton of money later and it generally won't affect your bankruptcy.

So the main thing is the previous 6 months' income AND your monthly spending vs. your current income. You want have very little left over as you will have to list your monthly expenses. The reason? The court is looking to see if you can pay back some of your owed money. Paying back some money is what occurs in Chapter 13.

[Cali]

The only time future income would matter is if it happens before 341.

And when you say you were living pay check to pay check was that including paying your unsecured debt?

[BROKENN]

Yep, you can make a proposed budget of income/expenses.
Do both working/not working FYI first. Put every expense you can think of in it!
If you aren't working when you file use those numbers.
If you get paid before the 341, you have to say. Then have your proposed budget ready.

My budget was minus without both incomes.
Ask your atty about this stuff when you see 'em. Good Luck!

[jasahj]

Yes, we have paid our bills including all secured debt with nothing left over. No house or any other items of value to take and sell to pay back debt. We were paying all of our debts ontime until I was no longer receiving a paycheck. Nothing was left over, no savings or anything. Our income is below the means and our our disposable income was in the negative when I completed the online means test calculator.

[Cali]

If you know for sure you are filing, you should stop paying all unsecured debt. That should free up money to hopefully live on. And since you are below the median for your area, you shouldn't have a problem filing C7.

[laurannm]

Completely agree with the above, if you are certain you are going to file, then stop paying your unsecured debt and use that to live on.

$250 for a consult seems awfully high to me...majority of the lawyers out there offer free (or minimal cost) consultations.

[dbryant]

Now that i saw the post on the Oct 08 filing requirements changing, i am worried i may make too much money to file Ch 7. I have a family of 5, in Cal, and make $82,420 /yr. The latest Oct means suggests that $74,801 is the median for a family of 4. Since i have 5 in my family, and not a penny to my name after paying all my expenses (actually i am about $350 a month in the NEGATIVE) does it look like i am going to have problems? We are in the process of collecting funds to give to an attorney to take on our case. Our intial meeting with him suggests we should be good, but unitl he has all the hard data in front of him, it's up in the air. Any suggestions out there?

[scubaman]

before or after taxes

Now that i saw the post on the Oct 08 filing requirements changing, i am worried i may make too much money to file Ch 7. I have a family of 5, in Cal, and make $82,420 /yr. The latest Oct means suggests that $74,801 is the median for a family of 4. Since i have 5 in my family, and not a penny to my name after paying all my expenses (actually i am about $350 a month in the NEGATIVE) does it look like i am going to have problems? We are in the process of collecting funds to give to an attorney to take on our case. Our intial meeting with him suggests we should be good, but unitl he has all the hard data in front of him, it's up in the air. Any suggestions out there?

Hi dbryant
Is the amount you make before or after taxes. If before I believe that is the number you use for the means test. I'm not sure can someone clarify?
Thanks

[dbryant]

That is before taxes

[scubaman]

hi

Did you try both numbers? Maybe that could help. I went out and bought a book by NOLO "The New Bankruptsy will it work for you" it has the new laws for BK7 and 13 and you can find it on http://www.nolo.com
Hope this is ok to share.
Scubaman

ps I guess I should read it which I have but I getting ready to sign my documents with my attry this week hopefully so I'm just ready for this to be done (I also live in CA).

Good luck

[Cali]

I don't know what you were looking at, but I live I in California and the income for a family of 4(which is my family) is 76,931. And anything over 4 you should add 6900.

Now that i saw the post on the Oct 08 filing requirements changing, i am worried i may make too much money to file Ch 7. I have a family of 5, in Cal, and make $82,420 /yr. The latest Oct means suggests that $74,801 is the median for a family of 4. Since i have 5 in my family, and not a penny to my name after paying all my expenses (actually i am about $350 a month in the NEGATIVE) does it look like i am going to have problems? We are in the process of collecting funds to give to an attorney to take on our case. Our intial meeting with him suggests we should be good, but unitl he has all the hard data in front of him, it's up in the air. Any suggestions out there?

[danaf]

Holy cow - that is BS having to pay 250 just for a consult! Screw that. I got tons of free consults and then decided to go pro se anyway. These lawyers are totally taking advantage of the increasing bk filings. Find an attorny who will give you a free consult or study and go pro se. Your situation sounds pretty cut & dry. I just can't believe a bk lawyer charging 250 just for a dang consult. That is so ridiculous it's laughable and sad at the same time. I really hope you cancel this appt. and find a different attorney who will give you a free consult - which is the standard.