Everything Planned, everything ruined...

[bladerunner]

Hello everybody...I've been reading the posts for a while and I want to thank everyone for the helpful and sincere information...Now I need help or just some feedback...

My husband and I were in the planning stages of gathering all of the paperwork necessary for a chapter 7. I've been unemployed over two years, my husband's an independent contractor in the insurance business...his income down over 70%..We were anticipating getting rid of $50,000 in CC debt and a second home that is now underwater over 150% and a financial burden. We have exhausted our 401k, paying the penalty and our savings is now depleted..

and here's the ruined part. My husband just made a big insurance sale last week, his commission is about $30,000 before taxes, paid in increments over a 10 month period...I know I should be happy...but did we ruin our chances qualifying for a chapter 7 now? any thoughts, information would be most helpful...thank you everyone

[SMinGA]

$30,000 gross over 10 months = about $3,000/mo gross. If that is the sole source of income, its probably not going to rule out a ch. 7.

What is your net income per month now? Net expenses and bills - not counting anything you'd give up in a bankruptcy?

[momofthree]

You may just need to file sooner rather than later. If you filed this month, they would go off of the last 6 months of pay ending in April, which wouldn't include the commission.

[AngelinaCatHub]

You may just need to file sooner rather than later. If you filed this month, they would go off of the last 6 months of pay ending in April, which wouldn't include the commission.

That is a fact. Until you get the money in hand, you do not have anything more than speculation. If asked and it will be, at your 341 if you expect anything in the future (windfall, insurance, inheritance) tell the Trustee about this income. It is just about survival income these days and it is NOT permanent.

As stated and I agree, file now using the last six months. 'Hub

[SMinGA]

But if its already earned, and being paid over the next 10 months - isn't that different? Means test would look back, but schedule I would look forward?

[AngelinaCatHub]

But if its already earned, and being paid over the next 10 months - isn't that different? Means test would look back, but schedule I would look forward?

This may be so, but using the depleted last six months and the small amount of NET proceeds still will offset this. Also, this is still not in hand. It also has a termination date. I don't think they will have much of a problem. 'Hub

[Bkman2]

I work in real estate and for me at my 341 meeting they asked if I had any escrows pending before I filed. In the real world an escrow is nothing to me until it closes but to the trustee its future money they will want.