how close to the median is too close?

[frustrated7]

We are hoping to be able to file in April. Right now, my husband is getting a lot of mandatory OT at work, though it looks like things will be slow the rest of the month. Because of his OT, this will likely put us really close to the median line, as in maybe $100 below median...assuming we don't go over this month. Do they just look at below median or above median, or do they look at how close to the median you are? Our attorney has basically told us that we have to get below median or the trustee we will have will force us into a Chapter 13, which we simply cannot afford. I don't want to wait yet another month, so I'm hoping we can qualify in April. Anyone?

[StartingOver08]

Does it help to change the date just a little?

If you file in March (say between the 16th and the 31st) then the income used is Sept thru February rather than Oct thru March. Does that help your income to qualify as below median? I only ask because it sounded like the OT your DH is putting in has been recent and temporary.

[frustrated7]

The OT my husband has been putting in is temporary. However, we had a pension distribution in December, which is what put our income over the median in the first place. I'm not working right now, which drops our income significantly, but we are still going to be really close to the median if we file in April (which we really want to do). We don't qualify this month. I'm hoping we make it in April, but we might make it by only $100 and that's if we make it at all. Who would ever think I would complain about making an extra couple hundred dollars?!?!

[OhioFiler]

We are hoping to be able to file in April. Right now, my husband is getting a lot of mandatory OT at work, though it looks like things will be slow the rest of the month. Because of his OT, this will likely put us really close to the median line, as in maybe $100 below median...assuming we don't go over this month. Do they just look at below median or above median, or do they look at how close to the median you are? Our attorney has basically told us that we have to get below median or the trustee we will have will force us into a Chapter 13, which we simply cannot afford. I don't want to wait yet another month, so I'm hoping we can qualify in April. Anyone?

Does mandatory overtime mean he can't get "sick" for a couple days and take time off without pay?

[frustrated7]

It would be a bad idea for him to call in sick. But becauase they are going to be super slow next week, he could probably take a few voluntary days off work, which would lower his income. We have considered that.

Does anyone know if how close you are to the median matters, or if it's just as long as you are under median?

Also, has anyone here who was below median ended up forced into a Chapter 13 they did not want?

Thanks.

[CatsInTrouble]

Frustrated, we were close to only about a hundred bucks BEFORE the numbers, and our lawyer was hemming and hawing. Be careful of the means test, next, where they look at your monthly budget in and out to see how close you are there. We almost went over on that.

[DebtEnder]

Have to ask since you didn't say, are you super close with the pre-march 15 numbers or the newer now HIGHER median levels seen here http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

this is the pre march 15 table if you don't have it already

http://www.usdoj.gov/ust/eo/bapcpa/20081001/bci_data/median_income_table.htm

[frustrated7]

I'll be super close to the new median numbers coming out in mid-March.

[jennordhavn]

I was OVER the median ($1876.16 over) and still passed the means test and was still able to file Ch. 7 with no problems. Make sure your Schedule J also shows low (or negative) disposable income and that your expenses are reasonable and you should be fine.

[frustrated7]

The problem is that for some weird reason our numbers keep coming up with us having disposable income, even once we fall below median, enen though we have NO real disposable income. They use the numbers from the past six months averaged out, so even though we have had a huge drop in income, they don't factor that in until enough months has passed for the other to drop off, and like we would receive a pension payout every six months. Our attorney was trying to do something fancy with my student loan payment, but I think he's making a huge mistake in that and it wouldn't end up being accepted by the trustee. I just don't know how much more of this stress I can take. I sent the attorney an email last night with a list of questions and I hope he consults with his fellow attorneys and gets back to me soon. This stress is making me sick.

[CatsInTrouble]

The problem is that for some weird reason our numbers keep coming up with us having disposable income, even once we fall below median, enen though we have NO real disposable income. They use the numbers from the past six months averaged out, so even though we have had a huge drop in income, they don't factor that in until enough months has passed for the other to drop off, and like we would receive a pension payout every six months. Our attorney was trying to do something fancy with my student loan payment, but I think he's making a huge mistake in that and it wouldn't end up being accepted by the trustee. I just don't know how much more of this stress I can take. I sent the attorney an email last night with a list of questions and I hope he consults with his fellow attorneys and gets back to me soon. This stress is making me sick.

I feel for you, frustrated. "Join the club." I see, around here, that the NOT knowing is the worse part, huh?

[DebtStinks]

The means test will just provide a "presumption" of abuse. Just because you pass, or are under the mean, it doesn't mean you are 100% safe. If you show enough disposable income on your schedules to fund a chapter 13 then the trustee can push for that if they want.

I would really spend some time playing with the means test and your projected 6 month income for the coming months to find the best time to file. For my wife and I we need to wait till June before we can file as it will be the safest month for us.

Also, your definition of disposable income is probably different that what the means test looks at. The means test only looks at what it “should” cost for you to live in your area and does not include payments on credit cards or anything else that is considered above the norm.