Just got laid off again, pre-petition filing and preparation to file.

[ccmisery]

Well it's been a tough year to say the least, but I will count my blessings. I was laid off from my job (2nd time in the past year) and am in the middle of filing bankruptcy. The lawyer is painting a Chapter 13, which at the time and my income would have been ideal but now that I lost my income and my wife is working a job for $11/hr and my timeline of finding a replacement job is unknown, I will be on unemployment soon again unless something magical happens.

I am not getting a big severance package, only a couple weeks pay and unused vacation days. I just bought a new car a few months ago and am current on my payments, but not sure how long that will be feasible?

My question is, can I now follow-up with the lawyer and discuss my situation and switch to a Chapter 7? Nothing has been filed yet no petition completed, just the paperwork is being prepared. Would by salary for the previous 6 months say otherwise or does an immediate loss of income automatically push you into a 7?

Also what if I do get a job in the next 2 to 4 weeks?

[LadyInTheRed]

No, the loss of income does not push you into a 7. You still have to pass the means test.

Contact your attorney right away to let him know of the change. He may suggest you wait to file until you have been unemployed long enough to pass the means test, or find a job that will provide you with the stable income needed for a Chap 13.

[ccmisery]

I have an appt with the lawyer this week, need to discuss my options. I am between a rock and a hard place even more so now than before. Can't afford to move, can't afford to stay. No credit cards to travel for job interviews, bad credit so renting a lot of places will be out of the question, also have to worry about employers checking my credit and discriminating, yeah I know it's illegal but there is no way to enforce it.

I wish I did this 6 years ago when I originally planned or sooner this past year. Free advice for anyone thinking of filing, don't think just do it as soon as your gut instinct tells you it's too much to handle.

[OhioFiler]

The means test doesn't force you into a Chapter 13, it's merely a guide the court uses. Your Schedule I will show actual income based on your current status of unemployed and your DMI will reflect a negative value. You could file a Chapter 7 now but I'd wait a couple months for your 6 month look back to exclude some income.

[ccmisery]

I just met with the lawyer today, changed me over to a 7 and will use my previous 6 months of salary as a phantom income. I was unemployed 6 months prior to that. I was told that if the trustee wants to convert me back to a 13 if I find a job by the 341, that is up to them to decide. I will also be losing my investment property, oh well? I would rather file a 7 and be done with it at this point.