Big Income Swing a problem?

[Moneypenny]

Hi,

I did some extra work last year which jacked up my yearly income, plus my wife worked a bit and we had combined income of 105K.

Now we are below median, with me not doing extra work and my wife not working at all in the last six months.

She is taking care of our two young children. I am doing my normal job. This puts us under median and good on I&J in the look forward.

At some point in the future, I will probably get a raise.

Our CC debt is 67K, 50K of it was in place before we stopped paying, the rest fees and interest.

Is this very suspicious looking? Does my wife have to have a good reason why she does not go back to work? Do I need to have a good reason why I dont do extra work beyond my normal duties in my job contract?

How bad is this?

MMP

[Meatstick]

I wouldnt worry about it at all. We made around $140k in 2009. My wife is not working now attending school full-time and I am not working contract on weekends anymore. I am still over the median income but pass the means test.

Our lawyer said we had nothing to worry about and I am sure you would be in the same boat. Taking care of children is a full-time job in itself. Relax you will be fine.

Good luck !

[momofthree]

You have 2 young children and jobs are scarce right now. I don't think you have any cause to worry.

[BCA2009]

No worries. If you could be denied BK because you make less money than you used to and one spouse is out of work, none of us would qualify.

There is no way a trustee can evaluate whether or not you are working hard enough or trying hard enough to get a job. That is why we have means test and six month look back. That is how your income/expense is evaluated.

Plenty of people quit a second job or give up overtime to qualify.

I believe this is especially imoportant in Chap 13. Yo do not want to set up a 5 year plan based on always earning overtime or having a second job.

Had we been forced into Chap 13, my wife would have quit looking for a job. No sense in her working to pay childcare and the rest going to the trustee.

Good Luck!

[Moneypenny]

this is about a 7. i cannot even fathom my life on a 13.

my wife is not looking for a job or going to school. she's just taking care of the children. she could easily get a job if she wanted though. she prefers to take care of the children.

can she just say she wants to be a homemaker, that's what she wants to do? or does she need a better reason? Might she even be asked?

MMP

[BCA2009]

this is about a 7. i cannot even fathom my life on a 13.

my wife is not looking for a job or going to school. she's just taking care of the children. she could easily get a job if she wanted though. she prefers to take care of the children.

can she just say she wants to be a homemaker, that's what she wants to do? or does she need a better reason? Might she even be asked?

MMP

She doesn't even have to say anything. No one is going to ask her why she isn't working. But even if they did, a homemaker / stay at home mom will cause no problems.

[cocojambo]

I wouldnt worry about it at all. We made around $140k in 2009. My wife is not working now attending school full-time and I am not working contract on weekends anymore. I am still over the median income but pass the means test.

Our lawyer said we had nothing to worry about and I am sure you would be in the same boat. Taking care of children is a full-time job in itself. Relax you will be fine.

Good luck !

How did you manage to pass means test with $140k?

[Mensa1]

We made around $140k in 2009.

Where do I apply for a loan, Meat?

[Meatstick]

We made $140k over the entire year of 2009. At the end of this month my 6 months look back will be about $46k which is almost $10k over the median for my area. With our allowable expense we can safely pass the means test. To put it all in perspective, this time last year I had already made $36k compared to just over $17k this year. We are already down on our income by $20k and by the end of this year our income will be half of what it was last year and we still have the same liabilities.

[Meatstick]

Where do I apply for a loan, Meat?

hahaha........ I will pm you if I win the Powerball !!