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Why Timing is important

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    Why Timing is important

    When I first started looking into filing bankruptcy, I told my attorney that I might get a bonus in March. He suggested filing in January or February so that it wouldn't mess up the means test. It's not that the bonus would put me over the median for the whole year, but the way they do the 6 month test might have created problems because they would just average the bonus out over the prior 6 months. It didn't matter that it was for 12 months. And given that I have a significant DMI until I have to move out of the house and have pay rent, it might have been enough to push me into a Chapter 13 (I am still worried about this but my attorney says that she's not concerned at all given the totality of circumstances means that I won't be rent free for the 5 years).

    Well, I am getting the bonus. Maybe on 2/23. If I wasn't ready to file until March, it would have been in my 6 month look back if I do get it next week. Getting it pushed my filing date up from the 26th to this Monday to make sure that it is exempt. My attorney didn't think there would be a problem, but wanted to be on the safe side.

    It is scary, but I am glad that once I made the decision, I didn't drag my feet. Which I was very tempted to do. Please don't take this as saying that you should rush into filing, just look carefully at your situation and plan your filing.

    Now, if these nervous jitters would just go away. It would be nice to sleep again.

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