Anyone have success with this?

[Janetdoe]

My husband had brain surgery and we ended up with Short Term disability payments on top of his regular salary. This made his monthly salary WAY more than usual pushing us to Chapter 13. My attorney said we can try to argue that the Short Term disabilty was a one time disbursment and we won't be getting that again and therefore should be Chapter 7. Anyone ever have this situation? This whole bankruptcy thing is so complicated I can't see straight.

[LadyInTheRed]

I haven't had experience with that, but an easier strategy would be to wait to file until the disability is far enough in the past to decrease the income in the 6 months before the month you file enough to pass the means test. Is there some reason you can't delay filing?

[LadyInTheRed]

I thought I would provide a little more information.

When your means test shows enough disposable income to pay a significant amount of your debt, the presumption of abuse arises. But the presumption can be rebutted by showing that the means test is not a true picture of your financial situation because you have unusual expenses or a permanent decrease in income. I don't remember hearing of anyone trying to overcome the presumption of abuse. But, that doesn't mean it doesn't happen. I suspect many attorneys try to avoid having to do it by delaying filing like I suggested or just telling their clients to file Chap 13. Your attorney suggesting that you try to overcome the presumption is an indication that you are in good hands with an attorney who is willing to work to get you a Chap 7 discharge even if it isn't the easiest way to proceed. That said, if you can wait to file, your case will be simpler and perhaps less expensive.

[Janetdoe]

Thank you Lady in the Red, I met with the attorney yesterday and it looks like we MIGHT pass the means test. We are going back today and if so I guess this will be irrelevant. I'm glad to hear my attorney is giving good advice! She really wants us to file Chapter 7 and that's what I would like as well. Thank you as always for your advice!