Questions...

[Extended]

I have been reading the forum for about 2 months trying to learn as much as possible. I have met with one attorney, but she wasn't much help during the free consult. My situation is a little different from most the scenario's that I have read on here.

I was laid off back in March and went 4 months looking for a new job which drained all of my savings and assets. We are current on all bills but are struggling every month because I took a 20K pay cut. Most months we have to use CC to pay for some gas or groceries and we have tried to down size everything we can.

There is a very good chance I am going to lose my job again with-in the next 6 months. Even if I don't lose the job, I'm not sure I can mentally continue to handle the job anyway - very demanding, lots of hours, and the current economy is making it near impossible to peform. If I can squeeze into a chapter 7 I may just quit the job.

I'm 99% sure I am going to have to file and I'm trying to do what is best for my family. Here is my nightmare.....

Our combined income is 132K and I make 72K currently. I am trying to file Chapter 7, but have some questions.

1. If I lose or quit my job do I still have to wait 6 months for that income not to count on the means test? I am in a very specialized field and would have to relocate far away to maintain anything close to my current income - and right now that is not an option.

2. Even if my income is not taken into consideration my wife makes more than the median on her own. Median is 49K in Missouri and she makes right at 60K. What (if anything) can we do strategically to help pass the means test?

3. I'm debating whether or not I should stop paying any bills now, while I am still working? If I have to wait 6 months after I lose my job, I don't know if I can hold the creditors off that long? Is that even possible? I need attorney fees and some other necessities (clothes, tires, tax money, etc).

I am going to meet with 2 or 3 additional attorneys, but the first one just said she thought we would be a 13 and that I would have to schedule another meeting to run the numbers. Any help is appreciated!

[Confused33]

Try going online and doing the means test as honestly as possible. I did it for my situation and the attourneys numbers were almost exactly what mine were.

We make more than the median by a little bit and still blew the means test. Its based more upon how much you have going out vs coming in.

Good luck either way. Get some more opinions!

[Extended]

Thanks for the reply... I've messed with the means test a few times, but I'm not confident I am doing it correctly. I'll take another stab at it.

My biggest concern is how can they look at my past 6 months income if I can not replace that income moving forward?

[justbroke]

My biggest concern is how can they look at my past 6 months income if I can not replace that income moving forward?

You can thank Congress for this.

They were trying to cover cases in which a person may get annual bonuses or other non-monthly income. This levels the playing field significantly.

For example, I can get up to a 20% bonus each year (I haven't seen 17% in about 5 years). I usually get 2-5%. When I filed, my dumb bonus bumped up my measly monthly income by $1K. That almost made it look like I have significant disposable income and ability to fund a Chapter 13 (which I needed a Chapter 13 anyhow for property reasons).

Had they just asked what my monthly income was... it would have been $1K less. The extra bonus would have been hidden.

[Extended]

So I guess it looks like I need to plan my BK 6 months out.

[justbroke]

So I guess it looks like I need to plan my BK 6 months out.

Exactly why there is the concept known as Bankruptcy Planning.

[CatsInTrouble]

extended, my lawyer said that its near impossible to pass the means test with income above 100k! and you're way above that! have you looked at 13?