Ch7, Pay Stubs w/No Job

[rooster]

I'm just starting the process for CH 7 as a result of over 3 years of legal litigation and now approximately 200,000 dollars in legal fees, judgements, etc over a real estate deal gone corrupt. (at my expense).

My question is regarding the means test. I used to make decent money, but lost my job 2 months ago. I'm hanging on paying rent, and live a modest life. I have no credit card debt, just enormous legal bills, who are now taking me to court (which I can't afford).

So, for the 6 months of pay stubs, I haven't worked in 2, so what do I do. I called a BK lawyer (in LA) but they wanted $500 just to talk.

I'd love to be able to do this myself, without paying more lawyers. The means test seems simple. Less than $4000 a month (for my zip) and I quality. However, I"m confused on how to provide proof, when I don't have a job, have been interviewing but not getting jobs, and my brother is paying my rent.

thanks for any help , or pointers to free legal services in the LA/Santa Monica area....

[whipster1]

You supply any paystubs you have, so if you worked 4 out of the six months, you supply those 4 months. If you were making "good money" you may want to wait until those months fall off the look-back period. If you have no assets to collect upon, you shouldn't worry much about people suing you. Even if they get judgments, those can be discharged.

[backtoschool]

I'm just starting the process for CH 7 as a result of over 3 years of legal litigation and now approximately 200,000 dollars in legal fees, judgements, etc over a real estate deal gone corrupt. (at my expense).

My question is regarding the means test. I used to make decent money, but lost my job 2 months ago. I'm hanging on paying rent, and live a modest life. I have no credit card debt, just enormous legal bills, who are now taking me to court (which I can't afford).

So, for the 6 months of pay stubs, I haven't worked in 2, so what do I do. I called a BK lawyer (in LA) but they wanted $500 just to talk.

I'd love to be able to do this myself, without paying more lawyers. The means test seems simple. Less than $4000 a month (for my zip) and I quality. However, I"m confused on how to provide proof, when I don't have a job, have been interviewing but not getting jobs, and my brother is paying my rent.

thanks for any help , or pointers to free legal services in the LA/Santa Monica area....

As someone who made good money and then got laid off, (you can look at my older posts to read my story...) I would wait the full six months until your salary falls out of your six month look back period.

Is there anyway you can collect unemployment insurance? I am not saying to collect this for the money so much as for a clear record that you are truly unemployed. In any case, I would definitely suggest going through the process to apply for unemployment insurance because that is valuable paperwork you can show the trustee in regards to your unemployment.

I was grilled at my 341 about my former income. Trustees do NOT want to see someone get into a chapter 7 that would have qualified for a chapter 13 if they were making what they used to make. In the end there is nothing they can do about it since the lookback period is six months, but from personal experience, I can say that it is a red flag to have a formerly high income just outside of the six month lookback period. It will be even more of a red flag if part of your six month lookback period has that high income on it. But of course all situations and trustees are different, and your mileage may vary.

[drowningNdebt]

so say you file sept 15th. is the 6 month look back period from sept 15th back to march 15th? (6 months)

[whipster1]

No. The means test would look at August back to March if you filed in September.

[lrprn]

so say you file sept 15th. is the 6 month look back period from sept 15th back to march 15th? (6 months)

Whipster is right - it's a full six calendar month lookback.

Whether you file on Sept 1, on Sept 30, or any Sept date inbetween, the six-month lookback will be March 1 through August 31.