Is it possible to delay bk after you have filed?

[colleenbean]

Hello,

I have my 341 next week, but I received a bonus from work the week before I filed bk-and will be over the median income for Mass-my lawyer and I are speaking on Monday night-I did email my lawyer that I received a bonus etc...but no answer..I do not want to get in trouble-what does everyone think of this...can I stop the case and re-file in 6 months??? I dont want to be fraudelent-the bonus was in check form not direct deposit....scared

[HHM]

Well, since that bonus was received BEFORE you filed, it is fair game for your BK and will considered as part of your income. (sorry).

[PaKettle]

But HHM, since this was a special payment, not a regular part of the filer's income, could there not be a special consideration for this? or is it just cut and dried?

That is, yes, technically she is over the median, but could she still not qualify based on this being a special payment, not a regular part of her income? I'm just curious, and for others who may have this situation...

[tallberry]

Forgive me for maybe confusing the question but...I get a bit of mixed signals regarding being over the median income here. Sometimes I hear on this forum you should try to cut off a limb to get under the median income and then other times I hear if you are over the median income, no problem, as long as you don't show any money left after you compare your I and J schedule. So I guess, in this case, is it really such a big deal if there was a bonus (unless it was a $25,000 bonus), as long as you do not pass the means test? I mean, I am over the annual median income by around $7,000 but I have a negative amount of money left after the means test. I am filing CH 7, no question about it. Seriously, you can't get blood from a turnip!

[HHM]

But HHM, since this was a special payment, not a regular part of the filer's income, could there not be a special consideration for this? or is it just cut and dried?

That is, yes, technically she is over the median, but could she still not qualify based on this being a special payment, not a regular part of her income? I'm just curious, and for others who may have this situation...

Yes, it is cut and dried...the law is fairly straight forward, the 6 months of income prior to filing.

And to tallberry...there are not mixed signals but I can see where there is confusion. If you are a consumer case and the debtor is over the state median income, the BK case is "presumed" to be abusive. Thus, the debtor must demonstrate (on schedules I and J) that there is no income left over after paying "reasonable" living expenses. For the average person, in most districts, their living expenses will not significantly differ from those laid out by the Census and IRS. The key to "over the median income" chapter 7 filers is that their living expenses must be reasonable.

[tallberry]

Thank you, HHM. And the word "reasonable" meaning withing the IRS allowances on expenses, yes?

[HHM]

Thank you, HHM. And the word "reasonable" meaning withing the IRS allowances on expenses, yes?

For the most part, yes...but not necessarily. If you live in an expensive area, the court and trustees recognize that fact and may allow greater expenses for that area.