Disability & Job Loss (long Story)

[chloe0724]

Ok, so I was reading the other thread on here about hardship discharges and I became curious. I am still not confirmed for my payment plan as of yet. My husband did not file because the bulk of the debt was in my name only. We filed partly because of his health issues.

My question is about a hardship discharge or converting to a chapter 7. My husband is filing for workmans comp through his employer and then if approved, disability. He is a Police Officer currently and has a major heart condition. There is a law on the books called the Heart & Lung Bill that was enacted after 9/11/01 to help ensure the long term health of law enforcement officers and firefighters. There is no guarentee that he will win the workmans comp case, but our attorney said he would not take our case if he wasn't confidant he could win.

We are filing the paperwork within the month, and after the paperwork is filed, he will no longer be working. His small amount of sick time will run out very fast and it may take up to 2 years to complete the case.

I am pretty sure this would qualify for a hardship discharge, but I am not sure about the timing of everything. My bankruptcy attorny put in my chapter 13 paperwork that my husband would be diabled shortly, and we talked about his heart condition at the 341, but nothing else.

I know that converting to a 7 is an option, but would we have to wait 6 months for his income to drop off? We are way above the median income together, and still above it with my salary alone.

Thanks in advance!!!

[chloe0724]

anyone have any advice?

[HHM]

If you haven't been confirmed, you would not seek a hardship discharge, you would simply convert to a 7. You cannot seek a discharge until your plan is confirmed.

[chloe0724]

But what about the 6 month income lookback?

[HHM]

Yes, they would still look at the income and you would probably get the automatic Statement of Presumed Abuse if you are above the median, but once the issue goes to court (assuming the UST does not drop the issue by then) the judge can look at the totality of the circumstances to see if your filing is abusive.

[chloe0724]

Ok, so let me make sure I understand this.

If we have to convert to a 7, then because of my husband's disability and loss of income, the judge will take our current income and not look back at the last 6 months for the means test.

I hope I am getting this right.

I wish life were simpler.