How does new over time work with BK?

[adviceplease]

My hubby just called and said that they may be putting them on 9 hours a day for the next 3 months at his work. They have said that before but then they do not do it and then lay them off for a while. In fact he has been laid off 22 weeks from 7-08 to 7-09. So how is the trustee going to look at this additional temporary income? It is really a day to day thing they tell them at the end of the shift if they are going to be doing it and it is not optional.

This will raise our income up $800 a month extra but it never stays and then they drop back down. I think last time they did this it was for 1 week and then they stopped it.

Will they trustee look at the past years and realize that this is not an ongoing income? We will be retaining 9-18 but filing mid October so it will be on checks from 9-18 to when we file "if" they do it. It will be about $1000 extra gross from 9-18 to 10-16.

If I go by the national average for utilities and food then we only have about $123 a month left after the overtime.

[southernbelle]

If you are filing chapter 7, the petition will require a "snapshot" of your finances looking back 6 months prior to your filing. The chapter 7 statement of monthly income states:

All figures must reflect average monthly income received from all sources, derived during the six calendar months prior to filing the bankruptcy case, ending on the last day of the month before the filing. If the amount of monthly income varied during the six months, you must divide the six-month total by six, and enter the result on the appropriate line.

Here's the source: http://www.uscourts.gov/rules/BK_For...022A_0108f.pdf

This means even though there is a fluctuation, the income immediatley prior to the 6 months prior to filing will be taken into account.

[adviceplease]

Thank you for the reply. So if we file 10-15 they will only look up to 9-30? I called the lawyer and her receptionist said that they can look at future earnings to calculate but his job said it would only be up to 3 months so how does that figure in?

The receptionist also said that this could push us from 7 to 13. with the addition of expenses going down.

With the additional income we will have an extra gross of $10,000 ($3000 over average for chapt 7) which if I knew was going to be guaranteed I would not even bother filing BK but the past years we have not even come close to that amount.

[OhioFiler]

Southernbelle is referring to form B-22 which is the means test. The means test looks at your most recent 6 months income. This amount would include all paychecks through September 30. Nothing he receives in October would be considered.

Your Schedule I will include your actual CURRENT income. Since overtime is not a consistent source of income the tt will look at the last 3 months to determine an average overtime income.

Your husband's current OT should not be a problem given the temporary and historical natures of his employer's scheduling.

[adviceplease]

Okay that makes me feel better.

Do you know if they are going to take my student loan refunds as income for the last 6 months? I recieved one in May for $2500. I will recieve another in October (use for filing) but this is it for the extra loan money because I have finished my pre-reqs and once in a program it is more expensive and there will not be an excess left, can I explain this to the trustee?

If you take out the overtime and the student loan money out of the 6 months for our actual income it is $512 less a month.

[OhioFiler]

I'm sure the $2,500 will be considered income for the means test. It won't be necessary to include it on your Schedule I.

[adviceplease]

I am glad to hear that. I went and added up what I had of his check stubs for the last 6 months figuring from my deposits what the ones were gross that were missing. It looks like with the 1 student loan payment we will squeak by even with the overtime figured in up to Sept 30.

Since we are filing mid Oct then they are still going to go from Sept 30 back on income and student loans correct? If they go into October then things might change because of additional loan money and OT.

I appreciate all your help!