Quitting job to pass the means test

[debtmonster]

Is it okay if your spouse quits their job so you can pass the means test? My wife makes very little money at her job. That extra money throws us over the means test. After taxes and health insurance premiums are paid, she only makes a little over $100/wk. Our means is about $51,000/yr. I make about $50,000/yr. She makes about $1200/mo. sometimes. Her check is usually about $220-250/wk. minus $91 for the insurance premium. Her check this week was $131 or so. That small check for working 40 hours plus commuting 45+ minutes each way to work to get it. What a WASTE OF TIME.

If she quits her job, then that will save me the $1100/mo. I have to pay on the mortgage and $740 I have to pay on the car in order to qualify for a means test. It's cheaper for her to stay home than it is for her to work.

Will we get in trouble for her voluntarily quitting her job prior to a BK?

[BROKENN]

That will lessen expenses for the means too. No insurance, tax payments etc. Does it still work out?

You aren't much over.... maybe working feels better? Helps with insurance and some money?

[debtmonster]

Yeah, but after enrolling in the insurance, I see that it doesn't pay anything. It's terrible health insurance from some no-name company.

We have to pay $550 for our lawyer for them to do the means test for us. If my wife stops working and I make $4200 or less for the next 6 months, then that will save me 6 months x 6 mortgage & car payments.

6 x ($1000 + $740) = $10,000+ saved by my wife not working so we can qualify for the Chapter 7 by being under the median income for our state.

In all of that time, my wife will barely make $3,000-$4,000 take home.

Will the Trustee known that she voluntarily quit her job or does that not even come up?

[BROKENN]

Only if he asks you. Haven't heard anything from here

[debtmonster]

My wife just got another ticket. That's another $350 in expenses this month. We have $52 in our checking right now to last until next week and now we have no more credit cards to buy food. I have no idea how we are going to live. Even after NOT paying my mortgage, property taxes, insurance or car payment, WE STILL CAN'T BUY FOOD!!!

And now we're gonna not qualify for the means test because of not being current on the mortgage or car payment?!?!?!?! THIS DOESN'T MAKE ANY SENSE!!!!!!!!!!!!!!!!!!!!!!!!!!!!! What kind of idiot made up these rules!??!?! I WANT TO KILL THIS PERSON!!!!!!!!!!

I am stressing out to the max right now. My blood pressure is going to the moon. If I had a gun, I would just put it in my mouth right now and pull the trigger. Really, I would. I am so depressed right now. I just want to die. I don't see this getting any better.

Reading stuff like this just makes me want to vomit so bad right now:

http://news.yahoo.com/s/ap/20081108/ap_on_bi_ge/financial_meltdown

[Doghouse]

Whoa, gotta relax a little. It will all be better down the road.

Who says you can't use mortgage payments because you are not current? I am on my third missed mortgage payment and I will be using mortgage payment as part of the expenses to qualify for the means test when I file. As long as you are still living in the house, you can still use your mortgage expenses even if you plan on giving up the house. We are just late, that's all. Very late. Many people on here have used the mortgage to pass the means test and then surrender the house.

[debtmonster]

What about our car? It will be repo'd long before the actual filing. We can't sustain the $740/mo. payments, plus pay the lawyer $500/mo. on top of that, or manage to pay $1100/mo. to keep P.I.T.I. going as well.

[Cali]

I stopped paying my SUV payment 4 mths before we filed. And we kept it up until 2 weeks before discharged.

Who says you can't use your mortgage payment or car payment because you aren't current?

[debtmonster]

I stopped paying my SUV payment 4 mths before we filed. And we kept it up until 2 weeks before discharged.

Who says you can't use your mortgage payment or car payment because you aren't current?

I read some place on here that you had to be current. So if we don't have the vehicle in our possession, we can't use it? So if I were to file in May, I'd have to make payments on the SUV until February then? The repo man usually comes within 90 days of non-payment.

[Cali]

I guess it depends on your state and your attorney. For me it didn't have to be that way and the repo guy came 2 weeks before discharge. I didn't even get calls from the creditor.

I read some place on here that you had to be current. So if we don't have the vehicle in our possession, we can't use it? So if I were to file in May, I'd have to make payments on the SUV until February then? The repo man usually comes within 90 days of non-payment.

[debtmonster]

I guess it depends on your state and your attorney. For me it didn't have to be that way and the repo guy came 2 weeks before discharge. I didn't even get calls from the creditor.

You're not supposed to get any calls after you've filed because of the automatic stay.

Somebody posted on here that if the mortgage company finds out that you're looking to give the house back, they will file a relief of automatic stay to prevent something.

This BK stuff is all new for me, so I don't know how it works.

[Doghouse]

You're not supposed to get any calls after you've filed because of the automatic stay.

Somebody posted on here that if the mortgage company finds out that you're looking to give the house back, they will file a relief of automatic stay to prevent something.

This BK stuff is all new for me, so I don't know how it works.

Same here, I am learning all these stuff on a day to day basis. I'm not filing till Jan so will make sure everything is in order.

While I do plan on surrendering the house, I will not directly say so. I will just refuse to reaffirm the agreement. I also truly don't mind keeping the house if I can do a loan modification after the bankruptcy discharge and before being foreclosed. However for the loan mod, the CU that owns my 1st, 2nd and heloc must agree to strip the lein on the 2nd and heloc and reduce the principal on the 1st to the current market value of the house and add the arrears to the back end of the loan. Then my mortgage payments will be affordable. An uphill challenge but that will be my demand else they can foreclose on me and take the house. The 1st loan has already been sold to investors but still managed thru the CU.

[TEW]

You're not supposed to get any calls after you've filed because of the automatic stay.

Somebody posted on here that if the mortgage company finds out that you're looking to give the house back, they will file a relief of automatic stay to prevent something.

This BK stuff is all new for me, so I don't know how it works.

Debt
they file for relief of stay so they can start foreclosure and you can talk to them. they don't hound you they will send you letters.

[relief13035]

Received paperwork in the mail today regarding my rental property that we are planning to surrender. The mortgage company has filed motion for relief of stay. It shows another court date, which (1) week after my 341 meeting on 11/26. If each one of my creditors files one of these, I will be going to court daily. I have no idea why they are in such a hurry to foreclose since Las Vegas already has thousands to choose from.

[debtmonster]

Debt
they file for relief of stay so they can start foreclosure and you can talk to them. they don't hound you they will send you letters.

Oh! Thanks for that tidbit. Ya learn something new every day.

I don't care about them doing the foreclosure. I just care about being able to stay here rent-free for 12 to 18 months so we can save money. If they kick us out in 2-3 months, we'll be homeless and have no way to move or do anything with our belongings.