Strange Question

[inajam37]

Long story short...I have a friend that lost his job after he got arrested. He's currently found a new job and although it doesn't pay as much as his other one did, they are still over the income limits for a Chapter 7.

They've been told that the court will take into consideration that he lost his job and his income due to the arrest (because he suffers from an "addiction") and let them go ahead and file a Chapter 7 even though they have the means for a repayment. Does this seem right to anyone? Sounds fishy to me.

[lrprn]

They've been told that the court will take into consideration that he lost his job and his income due to the arrest (because he suffers from an "addiction") and let them go ahead and file a Chapter 7 even though they have the means for a repayment. Does this seem right to anyone? Sounds fishy to me.

Don't know who told your friend this, but it's not correct.

The court could care less about whether a filer lost his job, has an addiction, etc. The current bk law uses the mandated Means Test and Schedules to calculate income vs. expenses in complex cross-comparison. If your friend plugs in all the income made by his household in the last six calendar months and the forms show more than $160/month disposalble income, then he will be forced to file Ch 13, not Ch 7. If he shows less than $100/month in disposable income on the forms, then he can file Ch 7.

Compassion and emotion are not a part of the current bk law - it's black and white figures on forms, that's all that matters. Tell your friend to set up initial free or low cost consultations with 3-4 bk lawyers in his area and find out exactly where he stands.

I hope your friend is getting treatment for his "addiction" or they are likely to end up right back over their financial heads again without any bankruptcy card to play again for years.