has anyone ever heard this

[B65]

My lawyer told me that anyone one who earns over 80k it is always a high scrutiny case and goes infront of the feds before the 341 and they can ask for more paperwork, I do not understand it as we are under median income for a family of 5 in CT so why it would I have no idea... did anyone else here this and any issues? we are a no asset case we have a house with no equity.

Thanks B

[TEW]

B
The lawyers generally know how thing work in the district they practice in. I don’t think that’s a hard and fast rule everywhere but it maybe something the judge or the UST do.
It’s not something I would worry about. If your petition is legal then it doesn’t matter how hard they look your BK is going to discharge.

[B65]

yeah

I have to keep remebering that..... i have no assets, i did not use my cards for 4 months before and the debt has built up over 8 years with bad luck on 2 houses, (roof falling in within 6 weeks of purchase) the usual, the only think that worries me is because he said they may not accept us as a family of 5 and that throws us into a 13 and i don't want that. The 2 older girls are my dependents on our IRS taxes they are in college full time and have never worked or filed taxes.... so thats my only worry, nothing else .
B

[TEW]

You will be fine, bad things happen to good people. You are still supporting your daughters even if they are in school.

[happy_ira]

Lesseee.... here's some additional food for thought on this topic. A couple lawyers told me the same thing ("if you make a lot of money, your case will receive more scrutiny than someone earning $30k (or so)"). You get the picture. If you earn a lot (relatively speaking), it will get looked at.

That said, you can still qualify for chapter 7 if you have the necessary expenses that enables you to pass the Means test (Form 22A). You also have a "story" that goes along with yours *(bad luck on two houses, etc.); in my own case, I found that a genuine story helps (as opposed to "I spent the money on five years of vacations...").

Personally, I make more than 2x the median allowed for my size family in NY. I think all trustees in the NY/NJ/CT area are attuned to high income people. However, I could (and did) explain every single one of my expenses. You should be prepared for same.

As people on these boards know, I had to deal with a US Trustee because my case became high profile given the high income on one end, and the high unsecured debt on the other. Feel free to fire off any other questions.

[merlotwaytogo]

Hi, I live in Ct and am just over the median with my husbands income included even though I am filing alone. Did you get to keep your house and still file for chapter 7. My only debt I have a problem with is all credit card.

[B65]

Hi

Yes we got to keep our house we are current on the mortgage, the thing is though once this is all over with if we find our budget is still tight we may try to sell it or just let it go as i never want to be in a situation where we are too tight ever again.... did you file yet?

B

[merlotwaytogo]

No, I was told to wait 180 days after making a large balance transfer from one card to another. I am hoping the equity in the house squeezes into the 150k limit for CT. That is really my main concern, well that and having enough expenses even though we fail the means test. I know if I went with Ch13 I would be broke every month and be back in the same boat again. I would love to just use cash. What a concept.

[B65]

i wish I had equity in my home

we bought it 2 years ago and it is worth less than what we owe. If I had done this 2 years ago in my old home it would have been better.. I seem to make mistakes all the time, shoulda coulda woulda right?
i wish you all the best.... B

[merlotwaytogo]

I wish you success in your BK too. Here's to a fresh start.