Are wages or unemployment due a schedule B line 18 item?

[pippen2012]

Does anyone know if wages or unemployment due are a schedule B line 18 item? Do I need to file immediately after paycheck is spent to avoid becoming an asset case? There is no cash exemption or unemployment exemption in my district (Denver).

[pippen2012]

Also, does anyone know how far in advance rent can be paid without becoming an asset? I would guess the time frame would be 1 month. I am not on a lease and have paid on move in and also after receiving 2 student loan disbursements.

[justbroke]

Any advanced paid rent is an asset. Any deposit held by any utility, landlord, or other entity, is an asset.

As for your first question/post, it depends. It would be based on when you became entitled to receive it. For example, if the unemployment or wages are from work or lack of work in a week (or pay period) after the filing date, then that is not property of the estate. If it's from work, or lack of work, or back pay or a lump sum from a prior period (where it was "earned" or you otherwise became entitled to it), then it is it property of the Estate.

The key is, the petition date. Anything earned after the petition date, or you become entitled to after the petition date, is yours. There are a few exemptions, and they are death benefits, insurance proceeds, and property received as part of a dissolution of marriage... for a period of 180 days after filing. Everything else is yours, including lottery winnings that you became entitled to receive after filing.

In Colorado, as in most other states, 75% of earned but unpaid wages are exempt. (Standard for garnishment.)

[pippen2012]

Just Broke,
Thank you for the detailed response. Do you happen to know if I would be in trouble to borrow the money back from my landlord/ roommate to file bk and also make a brake repair to my auto? Also, what would happen if I list the apx $700 of 5 weeks rent and bills as an asset? Will my case become an "asset case" and what would that entail (other than losing the money)?
Also, I am going to have a three month span of strong income in June-August. I will have $0 income for Sept-Nov (typical for an outdoor guide) If I wait until May 15 to file will I be able to average the next year of income and expenses on I and J or should I list the May figures and list upcoming changes for two weeks later and so on? Can I just average the upcoming year so as to provide an accurate picture for the Trustee? The #'s for the upcoming year would meet the "virtually certain to occur" qualification in the 10th circuit case Hamilton vrs. Lanning 2008. I think that listing an upcoming average for the year would meet the intent of the document and represent a good faith effort on my part. Should I put the projected years income and expense averages into each appropriate slot on I and J and then list #s for each time frame on the expected changes line 17 Schedule I and line 19 schedule J?
Listing the amounts as of May 15th and then noting upcoming changes feels safer for following the directions but seems to be less accurate.
I have been digging for this answer with no results. BK clinics and Colorado legal are of no help. Do you know of the best way to research this further? I know that you have done a good deal of research yourself.

Thank you for still appearing on this site. The work you did is an inspiration to the rest of us.
Pippen

[justbroke]

Do not borrow it since you would need to disclose this. The debt would be unsecured anyhow. Additionally, you may run afoot of other "avoidable" preferences. (A preference is where you paid one unsecured creditor more than the others, while you were technically insolvent.) What you are suggesting is really a way to "hide", or as they say in the bankruptcy court, hinder, delay or defraud creditors. I would not try to hide money.

I am really going to suggest that you find an attorney referral service, find 5 attorneys, and then just get a free consult and run all this by them. You have a lot of questions pertaining to, for lack of a better definition, preserving your cash by... sticking it somewhere that the Trustee can't reach. Your questions are really bankruptcy pre-planning questions and every step you take when doing this sort of "asset" planning, is important. (Important because the Trustee may be able to "avoid" or undo some of the transactions.)

What is wrong with your 6-month lookback, that you need to look really far forward in order to qualify?

[pippen2012]

Justbroke,

I definitely qualify for a 7 not a 13 on form M22-b no matter how I fill out I and J.

I have increased income in the summer. I usually pay more for equipment and auto repair expenses in the summer and then save money for the fall. I am without any income this fall but should resume ski industry work in December. My concern is that the trustee will want money from me in the summer months and not allow me to pay increased expenses over the summer in between filing and the 341 meeting or between the 341 meeting and discharge. I am not entirely sure how things go for that period.

Thank you again for the advice.
Pippen

[pippen2012]

Justbroke,

Thank you for all of the great advice. I set up a free consultation and went to one more clinic put on by the Colorado Bar. I highly recomend the clinic to anyone in Colorado. One month or less of rent is not an asset in my district. It is an allowable expense. I claimed three days of unpaid unemployment on schedule B and also as exempt on C per colorado statute.

Filed it yesterday

Thank you again

Pippen

[justbroke]

Pippen, I'm so happy that you found a local resource that could tell you what would "fly" in your District. Knowing the District is very important when it comes down to questionable items. Best of luck to you and welcome to bankruptcy!