Question need help

[brokejave]

Got a question... after 6 long months of being garnished, we finally qualified and filed bankruptcy last week. We have our hearing next month. In order to qualify income wise, my husband had to stop working overtime. Since we have now filed, will our income still be tracked and monitored? We have been robbing Peter to pay Paul and all our utilities are on disconnect. Can the overtime resume now, or will we need to wait until next month after the meeting with the trustee? Every question we ask the attorney, the more we pay.

[kornellred]

I guess the reader must assume that your husband's pay was garnished due to a summary judgment, and that he had to stop working overtime so that you could file for bankruptcy under Chapter 7 without presumption of abuse. This situation should have been addressed by the attorney before filing. If your household income was below the specified median income for a household of your size for the look back period, then it would seem that there is no reason to question why it got that way (by avoiding overtime). No one needs to know if overtime earnings are elective or can be otherwise refused by choice.

If you have filed for bankruptcy under Chapter 7 and you answer the few questions that will be asked at the 341 meeting honestly, chances are good that hubby can resume overtime. Somewhere in the bankruptcy code there are stipulations concerning the surrender of windfall profits that might occur in the 6 month aftermath of a Chapter 7 discharge, such as winning the lottery, collecting a life insurance benefit, and the like. Almost certainly, once the discharge is in place, no one will check your income status unless a creditor files an AP.

[AngelinaCat]

I believe that the only windfall you have to worry about is getting an inheritance within 180 days. Assuming you filed a Chapter 7, your financial situation on the day you filed, is your financial snapshot. What happens after that is not in the picture. You could win the LOTTO, and not have to surrender it--unless laws have recently changed.

However, I would not do anything stupid, but I think your husband would be able to resume some overtime work.

Good wishes to you~~

[BKAttyMI]

In addition to this, also note that usually the past-due amounts of utility bills that were owed at the time of filing can also be discharged in bankruptcy. However, the utility companies may charge you a larger security deposit to continue service. If your utility past-due amounts were large, this is worth looking into. Most Chapter 7 cases are flat-rate, I'd be surprised if your attorney is billing by the hour.

[justbroke]

I echo what BKAttyMI and AngelinaCat wrote. Utility services can be discharged but beware of the need to pay a deposit if you include the utility bills! (I have found that AT&T, Sprint, and Verizon require no security deposit after including them. However, electric and water utility companies are VERY aggressive and are highly likely to charge the "statutory" deposit -- typically average of 2 months electric/water based on the last 6-12 months of service.