I Really Hosed This One Up!

[HGolightly]

I suppose this is why lawyers get paid the big bucks. I have to amend my chapter 7 filing already - only 3 days into it.

I filled out my paperwork umpteen times before I finally felt it was perfect. And the whole time, I had indicated my income via unemployment as $1900/month. But at 9 pm the night before I filed, I looked at the stubs I get with the unemployment checks and they showed I was being paid $450/week... That did NOT add up to $1900 a month! No matter how I tried, I couldn't make that work - so in my haste to finish, I re-calculated ALL my financials to $1800/month. But that kept gnawing at my mind - and sure enough - it turns out the EDD does not note the $25 stimulus payment on the stub included with unemployment checks !!!! I didn't trust my own memory and I didn't check my bank deposits. I trusted those stupid stubs! GAAAAAH!

So, now I have to amend all the financials, my statement of financial affairs, the means test paperwork - and get it to the court asap - which in my case, is tomorrow morning.

I suppose it should be considered a good thing for me to have discovered and corrected this hot-mess before the trustee did. The additional $100 per month will not affect the means test much of anything else - but my paperwork is not accurate and that is not good...

My question is - now, instead of being -$14 on DMI, I'll be +$86. Is that going to do anything bad to me? I mean, I could go in and amend my Schedule I to include the $12 contribution to a charity that I left off because I decided I might as well stop contributing to (temporarily until I find work), but haven't canceled yet. But I don't think it would look good to amend that schedule. It might look fishy, after the fact.

Any suggestions as to amendments? I can't locate an official amendment form on the CACB website, but there is one in the Nolo book. I'll hoof it over ot the library to use their typewriter if I have to. There does not appear to be any fee on the amendments I'm looking at.

Thanks for not pointing and laughing......

[mtbc]

How much do you owe? I seem to recall that has something to do with how much positive DMI you can get away with.

But, sure, you don't want them chipping away at your other expenses too. I'll be interested to see what others say about fishiness of amendments. I wonder if you can think of anything extra that really doesn't seem like an elective luxury.

[HGolightly]

I am in debt $30,000. $23k+ unsecured - $6k+ on my car. I didn't have to take the means test because I've been living on unemployment for the past 9 months. And my expenses are minimal and not even close to what is allowable in my district. So, if I'm looking at this correctly (which given my recent screw up on my income figures may or may not mean much), I couldn't be pushed into something like a Chapter 13 due to having a measely $89 DMI a month.

Right?

[mtbc]

Mmmm, that's not much debt. I don't recall the exact numbers -- something with multiplying it by other numbers then comparing it with your debt -- but, yeah, they punish you for cutting your expenses to the bone. It's stupid. We shouldn't have moved to a cheaper apartment and cut various other things a few months before filing. It sounds like you're close enough that someone creative can probably help you.

[HGolightly]

I think the multiplier stuff is on the means test. I don't have to take it, because my income is about a third of what is required in my state for a family of 2 ($24,000 is my income and $65,000 is my state's requirement to have to take the means test).

My DMI is from Schedule J - what's left from my monthly income after monthly expenses. That's going to be $86.

[JoeBankrupt33]

I hate to bring this up, but $450 per week is really $1950 per month because there are really 4 1/3 weeks per month. So, your monthly income is $450 times 52 weeks divided by 12 months = $1950. And that doesn't include whatever this stimulus payment is.

As for your expenses, you probably want to increase them and be able to back them up. Also, if they are not withholding federal or state income tax, then you could add an expense for the tax you will owe.

[justbroke]

Exactly what JoeBankrupty just wrote. I just performed the same calculation to tell you that $450 x 52 then divided by 12 is $1,950 a month. Many peole don't realize that there are 4.33 weeks in a month... not 4.

My question is - now, instead of being -$14 on DMI, I'll be +$86.

Actually, it's going to be $136/month (because of the $50 you left off). This may put you in the "Presumption of Abuse" category. If your unsecured debt is less than $32,650 ($136 x 60 x 4), then the presumption of abuse exists and you'll have to overcome it.

Any suggestions as to amendments? I can't locate an official amendment form on the CACB website, but there is one in the Nolo book.

There is no "amendment" forms. You just mark the standard forms as "AMENDED"

[HGolightly]

OH, KRAP!

Well, that sucks! I make such little money that I don't even have to take the Means test, and yet - I could be dismissed because I don't spend enough money each month??

Here's something else. I included on my income statement (I) and the Statement of Current Monthly Income that my daughter contributes $100 a month toward our household - I did that, because I want to be able to have the judge okay a reaffirmation of my car, and when I filed originally, I was at -$14 on schedule J... She doesn't "have" to contribute anything to this household, she just likes to help out. I can't remove that at this point, can I? Can I amend my schedule J to be more accurate about my expenses as long as I can prove I spend more than, say $250 a month on groceries, or more than $45 a month on electricity? My charity is only $12 a month, but I do have records... This is so lame! I have NOTHING and I might not get to be discharged??????

Edit: Good thing I printed out all my bank statements - and I never paid for anything with cash... I have actual records of what I spent and excel. I'll get accurate figures and amend with proof. Thanks and thanks for allowing me the rant above... GAAAAAAH!

[JoeBankrupt33]

I think you are perfectly fine amending your expenses if you can back it up. Also, the expenses on schedule J are post-bankruptcy expenses, so you are allowed to put down expenses that you expect to have. For instance, I put down money to buy clothes, but I was spending almost nothing on clothes before the bankruptcy because I was so freakin' poor. It looks, to me, that you probably have some room to work with regarding expenses because it sounds as though you are living like a miser to make ends meet.

[HGolightly]

Thank you, JoeBankrupt. I went back over the 6 months of bank statements I had already printed out and did a spreadsheet of my actual expenses in those categories. It was a LOT more than I had entered - but still well below the standards on the US Trustee website. So, I will amend I and J and Financial Affairs documents and Means Test. I have my backup for the additional expense and it looks like I will be around +40 when all is said and done. I might even whittle a bit more away before the night is though (though I don't want to be negative or the judge might nix the car re-affirmation).

Thank you for putting up with my psychotic attack! LOL!

[tigergem]

Oh the subject of those schedules, my trustee wanted me to amend my J because I had one $15.00 monthly payment go away and I got a better cell phone plan that lowered my monthly on that from $60-ish to $39.95. No problem, I also now have a brand new $33/month health insurance bill courtesy of medicare. The over all change to my J was like $5/month and she made me amend it. The only thing is, when I filed, I was +$1.15/month (after my plan payment). Now I am -$4 and change. But they sure do seem to look at that stuff hard.

Oh yeah, and I just marked what I changed as AMENDED where ever it would fit in the heading of what needed to be changed.

[HGolightly]

Well, then I'm really glad I caught my stupid math error - and I'm super glad JustBroke and JoeBankrupt took out their calculators. As scared as I am of looking fishy to the trustee, I would much rather do an amendment now than have the trustee point out my errors at a 341 meeting! I've got backup for all my added expenses (including a whopping $500 tax penalty for early distribution of my 401K - which I was going to save, but ended up needing to spend - paying my credit cards... ) Bottom line: Haste makes waste (not to mention sleepless nights and possible dismissals.

Thanks!

[tigergem]

Oh, those weren't even errors on mine. It was just circumstances that changed over the course of the month. Which I thought was pretty weird that she made me change it, because everything was accurate at the time of filing.

[HGolightly]

Oh, I didn't mean you made any errors or were hastey doing your paper work. I'm the one who was in too big a hurry.

But your post brings up more questions for me. The trustee made you amend your expenses because your circumstances changed from the time you filed until your 341? Because I got a temporary, part time job yesterday - and after unemployment goes through my check, I may be bringing home an additional $25 - $50 a week. So, I guess even though the trustee can't claim any money you bring in after you file (with the exceptions of tax returns and inheritences, etc.) - they can make you amend your expenses/income to reflect additional income after you file?

[JoeBankrupt33]

I would only worry about documenting your situation as it was on the day you filed.