60-day income before filing

[Tabbygirl]

I checked w/the court's office, and found out that if the trustee needs paystubs before the 341, they will contact me. Now I know how to deal with that concern.

We were well below for the means test for the 6 months prior to the date of filing. However, for the 60 days before filing, I have about $4500 in contract labor which is a one-time increase in income for the year (it's a summer teaching job).

When I submit that info to the trustee should I include a statement that this is a one-time payment or just let them ask? Should I also provide a detailing of expenses I incurred, since it's contract labor? It basically means we go from about $64.5K/yr. to $69K. The money will help, but won't dig me out of the hole I am in.

Also, if I make a large car payment to get my auto loan (that I want to keep) caught up), will that be a problem? It's secured, so I don't think that would be considered preferential, but want to make sure.

ETA: I decided to go on and deposit the remaining $2200 payment in my bank. It's going for bills and I will have receipts to back it up (like cancelled checks for utilities).

That's part of what the $4500 is going for--to try and get caught up. No furs or Caribbean cruises going on here!!!

[Phillymanhere]

Are you filing pro se (representing yourself)? Because these are good questions to run by your attorney.

I can answer one of your questions. Regarding one time income, it doesn't matter ... if you got a $70K one time check that puts you over the median for the previous six months, you're above the median--PERIOD. There is no qualifier, as I understand it.

Does the extra money put you above the median? Is that what you're worried about? ... remember, the 6-month income look-back is a snapshot. If the bk courts got into whether this was a one time payment or so, they would never see their way through these cases. It would be a mess.

So it's a crude one-time snapshot. All money received during the previous 6 months prior to filing counts. There is no note or qualifier you can give the court as I understand it. Of this one-time income really hurts your case (and know that you CAN be above the median and still qualify for a 7), some people decide to delay their filing.

[Tabbygirl]

Yes, I am filing pro se. Part of it is that I feel confident I can and will fully research the rules, laws et al. to file correctly; part of me also can't see paying an attorney to do something I can do myself (even if it takes a lot of work); part of me also just can't afford to pay someone, not to mention that I live about 70 minutes from anywhere I can get in touch w/ an attorney (rural Texas). There is also a really odd part of myself that also feels like if I am going to file BK, then I need to make sure that I need to fully understand what I am doing and know how it's done; I wouldn't get that experience through using an attorney. Maybe it's a penance-type mentality; it just makes me more accountable, I guess.

The $4500 isn't part of the 6-month "snapshot" prior to filing median income test, so that doesn't count on that end. I would, of course, disclose it if the trustee asks to see paystubs for the 60-day prior to filing period.

Basically, the breakdown is this:

I plan to file no later than 07-31-2008.

Income period for means test would then be 1-1-08 to 6-30-08. We pass easily. (we are $3700 under the median for the state)

Payment for summer teaching job arrived during July 2008, so as I understand it, I just need to disclose it on the appropriate schedule as additional income/salary increase which will or did occur during year.

Then, if asked for pay stubs, I would provide paystubs for the 60-days prior to filing (which also includes, then, July 1-31, which aren't part of the means test) and if needed, explain that.

We still pass even if the $4500 is included in the means test (if for some reason the trustee figured that in there, which she or he shouldn't).

I worry and am also so drop-dead honest that I second-guess everything. I also realize that the fewer weird situations or red flags I present means that my case will probably go more smoothly.

[abp559]

That $4500 may raise a red flag for the trustee, but if you explain it to him at the 341 just the way you explained it here, I think you'll be in good shape.

Keep in mind, though, that the trustee probably hasn't thought through all of the bankruptcy laws, and the various inconsistent date calculations, as thoroughly as you seem to have done. For example: In California, you can claim as exempt 75% of wages paid in the 30 days before filing. I get paid every two weeks, so I filed the day after payday. As a result, I was able to claim three paychecks under that exemption. The trustee was very confused about how I could claim that big an exemption, but after I explained it a few times he either understood or decided not to demonstrate any more ignorance.