More questions about income and assets..

[Rona123]

Well, I had my second meeting with my BK lawyer today, and I came away with more questions and a less comfortable feeling than when I went in, but like a few others on this forum, I will be a guinea pig for filing after the law change, so that's to be expected.

One topic that came up, and that I've only seen addressed once to any degree here, is what do to about income from roommates. A friend of mine moved in with me a few months ago until he found a job. He's moving out next month. My lawyer states that I'll need to include any money he gave me to contribute to rent and utilities, and I assume that will fall under "contributions to household expenses" on the means test. While I know things may change under the new law, does anyone have any experience with how roommate contributions were handled under the old law? Since he is moving out soon and was only around for a few months, does that constitute a "regular" contribution? I'm afraid this could be the deal breaker in that it will change my income and expenses enough to foul up my BK7 chances.

Secondly, my lawyer insisted that I needed to list my assets according to "garage sale" values, or liquidation values, as I take it, but I thought I remembered reading that asset values now must be listed according to "depreciated acquisition cost," or how much I would pay to buy an equivalent item, which could significantly change my asset values in some cases. Can anyone confirm?

Thanks again, and as things move forward, hopefully I'll be able to contribute more answers to this board than questions!

Ron

[StaciMM]

I don't think a roommate's income was even an issue under the old laws. My first thought would be to hold off on filing (if you're not facing repo, garnishment, or foreclosure) for a few months after he moves out. Since it is a 6 month average, the longer you wait after he moves out, the less impact that will be.

I had heard about replacement values being w/ the new laws, but I've also seen comments that it only applies to secured property. (Such as redeeming a vehicle.)

[bkfiler]

given the new laws im glad you got an attorney. also, its mosts often best to listen to him as he is supposed to know what the trustees want so that is what i would do.

ive seen the roommate thing talked about somewhere else. dont know the outcome however, sorry. besides its all gonna be up to what the trustee allows anyway.

it would seem to me that if that is an income then it can be used to offset the expenses. also, moving out and still living there are two different things. the jduge would rule that the income is still coming in so you have to include it. ive seen cases, many of them, that speak to the same idea. they say to go file when your case changed then, right now you are getting income from that source.

look into ways to start taking income away from you. buying health insurance, life insurance that can be traded back in for a refund etc. talk to your attorney and see what he suggests.

and yes, attorneys dont always come up with good or right answers so stay on him. keep asking questions. he doesnt care about your case as much as you might think to be honest. its your butt on the line and you will take the fall.

get in there and work him over until you are satisfied.

[bkfiler]

hehe, roommates income and income from roommates - staci you are palubg sim way too much im telling you!

[Rona123]

Great idea about finding other ways to decrease my income. I'll talk to my lawyer about that. Thanks BKFiler!

Staci, now that you mention it, I think you're right, and that jives with what my lawyer said. He did say to value my car at the retail replacement cost, so that must have been what I was thinking of.

As for my roommate, unfortunately I can't wait for him to move, or at least I don't think I can. One of the reasons I need to file now is because I recently got a job after being unemployed, and according to my calculations, if I file anytime after Jan 31, my average income will have increased to the point that I'll be above my state's median. Assuming I average out the income received from my roommate over 6 months, the same way I do with the rest of my income, that should still keep me under the state median if I file now, but might cause me trouble on the schedules I and J unless we can find a to offset it.

Thanks all!