Husband received promotion...

[lotsahats]

and it came with a pay increase. And, after a 90-day probationary period (which will end about mid-March), his pay might go up again.

Correct me if I'm wrong, but don't they calculate your income by going back six months? Because, if that's the case, then it wouldn't be an accurate reflection of our income.

I was originally planning on filing about mid-February, but, in light of this, should we wait until probation is up? Or six months after that, so that our income is calculated accurately? I'm sure we're not the only ones to experience a change in income during bk. How is a situation like ours usually treated?

[tobee43]

congrats on your husbands recent promotion.

well, it doesn't much matter really, as they most likely will have you do the six month snap shot, but it will show the increase and or change in income. that will be considered in your filing position, which, for example you were going to file a no asset 7 may turn your case into a chapter 13.

again, bottom line is, it's great news for your future!

[lotsahats]

congrats on your husbands recent promotion.

well, it doesn't much matter really, as they most likely will have you do the six month snap shot, but it will show the increase and or change in income. that will be considered in your filing position, which, for example you were going to file a no asset 7 may turn your case into a chapter 13.

again, bottom line is, it's great news for your future!

Thanks, Tobee. Yes, it was much needed.

I see what you're saying. Thanks.

[tobee43]

any time!

[momofthree]

Filing before his pay increase would be the safer bet to ensure you aren't pushed into a ch.13.

[keepsmiling]

Congrats, that is GREAT news!!!
Hopefully with some health insurance??

[tobee43]

Filing before his pay increase would be the safer bet to ensure you aren't pushed into a ch.13.

when you go to the 341 the trustee will ask anyway if there is any change in income or employment and then it will cause more of a problem. like not closing one's case and calling for an potential audit etc.

although, one uses their monthly income vs expenses for their dmi, it's possible to increase the expenses to cover the monetary increase thereby still coming out with a possible negative dmi, leaving filing options open.

[tobee43]

Congrats, that is GREAT news!!!
Hopefully with some health insurance??

right!!!! health insurance is certainly rare today!!!

[momofthree]

when you go to the 341 the trustee will ask anyway if there is any change in income or employment and then it will cause more of a problem. like not closing one's case and calling for an potential audit etc.

although, one uses their monthly income vs expenses for their dmi, it's possible to increase the expenses to cover the monetary increase thereby still coming out with a possible negative dmi, leaving filing options open.

If the 341 is held before the increase in income (which is not guaranteed and not taken into account if it hasn't happened), then it would be a non-issue, correct? 341 is usually within 30 days of filing, so as long as they filed at least 30 days prior to the completion of the "probationary period," then they should be in the clear.

[tobee43]

If the 341 is held before the increase in income (which is not guaranteed and not taken into account if it hasn't happened), then it would be a non-issue, correct? 341 is usually within 30 days of filing, so as long as they filed at least 30 days prior to the completion of the "probationary period," then they should be in the clear.

our courts were so booked that we had to wait over 2 months for our 341...one of the very first questions from the trustee mouth was...has there been a change of income since your filing. have you found new employment...and can i have your dl...LOL!!!

i mean what could we say if ...for example lets say we got a new job since that 30 days after filing (in our case it was more like 60 days from filing), and is now paying 150k yearly, we couldn't very well lie to the trustee and i bet you dollars to donuts the trustee would have asked for an updated statement of our income. but remember, that was just our district...maybe that question doesn't come up at everyone's 341, but it did that day in our hearing room. everyone that went up to her table she asked the same questions about income changes and employment changes. i just would be uncomfortable about it. that's JUST ME tho

[Flamingo]

and it came with a pay increase. And, after a 90-day probationary period (which will end about mid-March), his pay might go up again.

Correct me if I'm wrong, but don't they calculate your income by going back six months? Because, if that's the case, then it wouldn't be an accurate reflection of our income.

I was originally planning on filing about mid-February, but, in light of this, should we wait until probation is up? Or six months after that, so that our income is calculated accurately? I'm sure we're not the only ones to experience a change in income during bk. How is a situation like ours usually treated?

You are going to be asked if you expect any gain in income after your filing or expect an inheritance or insurance proceeds from a settlement after filing. You need to go over this with your attorney who handles your BK as it will probably change some things as you are aware of a change in circumstances and income which will affect your present status. Best of luck to you.

[NJLawyer]

If health ins is not included, the cost of it would most likely offset the increase.
Mega bucks, at least here in NJ.

[lotsahats]

Congrats, that is GREAT news!!!
Hopefully with some health insurance??

Where's a "Like" button when you need one? Alas, no.

[lotsahats]

I've been thinking...

Four months ago, when I stopped paying my creditors, we were really struggling. My husband was supporting a family of three on a minimal income. We were eating on food stamps, and robbing Peter to pay Paul.

But, things are different now, and if I could have foreseen that four months ago, I would have soldiered through the last few months, and continued with the payments.

So, I've decided to make one last-ditch effort at catching up on the payments, and paying them off altogether (that is, if my creditors are willing to work with me, at this point). If it doesn't work out, then so be it. At least I tried.

One thing's for sure, though. This whole mess has been an eye-opening experience for me.

I'll let everyone know how it goes.

[JackBondLove]

I'm wondering if the increase in pay will cause the trustee to put you into Chapter 13 instead of 7, and whether the net payments in the Chapter 13 would end up being higher than the sum of the loss via Chapter 7 liquidation and the after tax increase in pay!

I was in a similar situation when I was applying for a home loan, and there was a low income program that I just barely missed. I ended up having a net loss position because the difference of my salary and the high end limit of the program was less than the difference of the interest payments between that loan from that program and a regular loan. It's like I wished I could have asked my employee for a temporary pay cut!