I just found out that my dad is also considering BK. He had a very well paying job for a company that let him go last week. There is no way that he can get a new job and even make 50% of what he was making. Also, one of his creditors is suing him and another is really hounding him. He stopped paying on his unsecured creditors 8 months ago when he missed a lot of work for heart surgery. Anyway, his 6 month look back period will show roughly $10,000 a month gross. He can not wait 6 months for this income to fall off. But, he needs to file now. There is no way that he can manage a chapter 13 now or when he finds work. How important is the 6 month look back for him considering it means nothing now or in the future? His career and good income is gone forever.
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I would answer the lawsuit and delay, delay, delay. With how backed up the court dockets are in most places you should be able to stall it 6 months.Filed CH13 - 06/2009
Confirmed - 01/2010
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Different circuits look at the means test differently. Some give it a mechanical application, others take into account changed circumstances. So . . . where is your dad going to be filing?Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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He will file in North Texas. Can he really hold them off for 6 months? Should he get a lawyer to help with that? Thanks
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He's in the 5th Circuit then. The 5th has held that changes in circumstances are to be taken into account and not a mechanical application of the means test.Originally posted by topekajack View PostHe will file in North Texas. Can he really hold them off for 6 months? Should he get a lawyer to help with that? Thanks
Keep in mind, that only after 3 months or so, his average income is going to be WAY down. But yeah, a lawyer could assist him in holding them at bay, if need be, until he could file.Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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Dad just visited lawyer. He advised my dad to wait another 4 months because of his income over the last 6 months. The lawyer couldn't assure my dad that he could hold off the suits or foreclosure (he's way behind on mortgage... was denied help/mod. and he's got a suit coming his way for a cc) for that long. Now what? Why would the bk code do this to someone? I understand the purpose of the means test... but this doesn't make sense to me. It is clear that his current and future income is well below the median.
So, can he just file for a 13...the trustee will see on his schedules that he obviously can't fund a 13... then he is pushed into a 7?
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From my personal experience lawsuits can be held off a LONG time. I was served Nov 2007, Feb 2008 and Nov 2008. Three different suits. None of them had made it to judgment by the time I filed in Dec 2008.
Answer the summons. It is pretty easy to answer. If you need to do some research go to the courthouse and read a few others answers in lawsuits. After you answer there will be interrogatories, motions and all kinds of easy but good stuff. Even if they get a judgment then they have to try and start collecting. Texas is a wonderful state to be in. Four months will be no problem.
The reason the bankruptcy code does this is to keep someone from quitting his/her job then filing...Comment
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