Over the Median - Finally Filing

[DustinLH00]

Hey All,

Just wanted to let everyone know that it looks like I am finally filing tomorrow (11/28/09). For those that recall, I work a full time and part time job and was over the Median Income by $1200.00. I interviewed 5 different lawyers and each one of them told me to my face that there is no such thing as an "over the median chapter 7" and that whatever information I got was wrong. So I gave up and quit the 2nd job.

Luckily, I am able to sign an affidavit stating that I no longer have the 2nd job, so even though my 6 month look-back is over the median, my income going forward is below as that job is no longer a factor. My lawyer spoke with the trustee about this directly, so there should be no problems, at least I hope.

So, I have my appointment tomorrow morning to sign, pay and file. I hope all goes well and will await my 341 date.

[Meatstick]

That is interesting as the current laws state that IF your over the median income for your area that you still might be eligible for Ch.7 if you pass the means test. I am currently $10k over the median income but pass the means test and the lawyer we spoke with said we are eligible to file Ch.7. I also have a 2nd job and the lawyer advised to stop working so after 1 more weekend I will stop and it will be roughly 90 days before we file. It is a contract job so I can start again after the Ch.7 is finished.

What state are you in ? There have been more than a few posters here who have failed the income test but passed the means test. Are you sure you didn't fail the means test ??? Sure sounds fishy if not.

Good luck !


Meatstick

[nc73]

Yup strange indeed.

[Michigan1951]

Yup strange indeed.

Maybe DustinLHOO meant to say he was over his DMI on schedule J??? But if he meant over the Median only by 1200, don't understand why that would be an issue.

[tlcabk]

We are over the median income by 20,000 but our DMI on means test ends up at -700.00.

On form J line 20c we are at $3.00. We have filed Ch 7 and are ging this week to our 341. Time will tell what will happen.

My concern with being forced to a 13 is that I work for a company that made me sign a form stating that I could /would have my credit checked as a condition of hiring and as a condiiton of continued employment, so when/if they find out I filed BK, I will most most likely lose my job and then I really would qualify for ch 7. Mine is the main source of income that puts us over the median. There are no other jobs in or around where I live that pay more than minimum wage. It's been hit HARD by factory closings etc.

[HHM]

That is interesting as the current laws state that IF your over the median income for your area that you still might be eligible for Ch.7 if you pass the means test. I am currently $10k over the median income but pass the means test and the lawyer we spoke with said we are eligible to file Ch.7. I also have a 2nd job and the lawyer advised to stop working so after 1 more weekend I will stop and it will be roughly 90 days before we file. It is a contract job so I can start again after the Ch.7 is finished.

What state are you in ? There have been more than a few posters here who have failed the income test but passed the means test. Are you sure you didn't fail the means test ??? Sure sounds fishy if not.

Good luck !


Meatstick

Nothing fishy about it, it comes down to expenses. The attorneys are correct, if you are over the median, the odds of doing a chapter 7 are very low. It is possible, but you must have reasonable and necessary expenses to justify that you have no or little disposable income, or be a non-consumer case.

Sure, it is "possible" to be over median and qualify for a 7, but you must have the right factual circumstances, and MOST people are not in that circumstance.

[mtbc]

I wonder if/how that employment contract clashes with 11USC525(b), "Protection against disciminatory treatment" -- if they did fire you for it, I wonder if you'd have a case, given that courts have often interpreted the `solely' narrowly. If the worst happens, it may be worth investigating.

[DustinLH00]

Sorry about not coming back sooner. I was over the median and failed the means test. I had heard from others, or so I thought, that you can still file a Ch 7 if you are over the median income and if you fail the means test, but your schedule J shows little to no income. When I explained this to all of the lawyers, they said that is not true. If you are over the median, you cannot file a Ch 7.

I had the opposite problem than most people. My expenses were too high. I was -$300 on my Schedule J, and in order to reaffirm on my house and car, my attorney said I have to be positive or else the judge wouldn't allow the reaffirmation. So, basically, I had to lower my expenses to get myself to a positive number. I ended up with $22 a month in income after my expenses.

Hope this makes sense to everyone. On a related note, I did sign the paperwork today and he said he would file by Monday...

[DustinLH00]

Actually, just checked PACER and he filed today. So, it's official, wow, so many feelings...

[billf]

Above median chapter 7

Found this, might be useful

http://www.************************/...family-income/

[liz417]

As HMM stated, it's all about your expenses. I am $21k over the median and was able to file a ch 7. I must admit that I consulted with 6 attorneys BEFORE I got one to actually listen to me and look at my expenses, all wanted to put me in a ch 13 because of my income It can be done.

Congrats on filing

[DustinLH00]

Did you fail the means test as well? I am over the median, failed the means test but had plenty of expenses. I could have shown that I was negative on Sched J.

[liz417]

Yes, it was all about my actual numbers on my sched. J. I have some high transportation costs etc.

[DustinLH00]

So we have the same situation. The odd thing for me was that none of the 5 lawyers tried to push me into a Ch 13, they just refused to take the Ch 7. The last 2 lawyers I told exactly: "I know that I am over the median income. I know that I fail the means test. I know that my Schedule J will show negative net income with expenses I can prove. I know I can still file a Chapter 7 based on this info." And they both said absolutely not, even though I had obviously done my research. I was going to lose my 2nd job in January anyways since the store is closing, so I just decided to give up and quit it.

[daytona]

I think a lot of it has to do with the particular court you are in as well as the particualr trustee.