Need verification desperately

[xena]

We are filing tomorrow. Here's our situation. As of right now, we don't qualify for Ch 7 because our expenses exceeds our net income. How is this possible? Shouldn't we qualify since we actually don't even have enough money to pay our monthly bills? I probably estimated some too high. Say we qualify for ch7.

I asked the lawyer about my raise (an increase of ~736 gross income per month) that's coming up after we file if it will affect us and possibly be forced to ch 13. Here's what he said:

The bankruptcy is a snapshot in time, so as long as the income qualified at the time it was filed, it still qualifies. He then advise that we do have to bring in current paystubs at the 341 meeting to show the raise.

Can someone confirm what the lawyer is saying please? Thanks..

[epiphany]

We are filing tomorrow. Here's our situation. As of right now, we don't qualify for Ch 7 because our expenses exceeds our net income. How is this possible? Shouldn't we qualify since we actually don't even have enough money to pay our monthly bills? I probably estimated some too high. Say we qualify for ch7.

I asked the lawyer about my raise (an increase of ~736 gross income per month) that's coming up after we file if it will affect us and possibly be forced to ch 13. Here's what he said:

The bankruptcy is a snapshot in time, so as long as the income qualified at the time it was filed, it still qualifies. He then advise that we do have to bring in current paystubs at the 341 meeting to show the raise.

Can someone confirm what the lawyer is saying please? Thanks..

Hi. Your post is a little confusing but I think that your lawyer is trying to tell you that some of your expenses are not going to be permitted by the court because they are too high. Do you maybe need to figure out more realistic calculations?

Your lawyer is correct that they look back to the previous six months for income but I believe that the trustee is allowed to take into account any windfalls that occur between filing and discharge. I'm not sure if an increase in salary could count but I doubt that an increase of 736 a month would qualify as a windfall anyway. I'd listen to the lawyer if I were you.

Good luck to you,

ep

[momofthree]

We are filing tomorrow. Here's our situation. As of right now, we don't qualify for Ch 7 because our expenses exceeds our net income. How is this possible? Shouldn't we qualify since we actually don't even have enough money to pay our monthly bills? I probably estimated some too high. Say we qualify for ch7.

I'm confused. If your normal living expenses (not including unsecured payments) exceed your living expenses, then you qualify for ch. 7. You say you're filing tomorrow, but don't seem to think you qualify for a ch.7. The paperwork that you signed should have laid it all out in black and white which chapter you were filing. Do not let your attorney file the petition tomorrow if you're not 100% sure what he's filing....

[ladyjenn]

Do you mean you are just turning in your paper work to the atty. tomorrow?

[SMinGA]

Make the atty explain what he means about not qualifying for ch. 7 due to expenses too high. Make him explain it until it either makes sense to you, or he corrects any mis-information he is going from.

The gross of $736 will of course not be a net increase of $736. Net would be ~$625 at best - possibly lower depending on your filing status and such. But that should not have a bearing if you file tomorrow. (I'm guessing you want to file before the raise goes into effect.)

[SMinGA]

ps-looking back when you posted expenses, your figures seem reasonable and NOT high for your household size. And you're under the median income...

Since your actual, realistic expenses exceed your income make your attorney work for you - not against you - and insist that the schedule J that gets filed show your real expenses. In your case, it should show negative by $500-600 I believe when you give up the 3rd car and related expenses. The trustee does not have to count your student loan and 401k loan payment (about $350 a month total there) so showing your truely negative DMI covers you. (Even if taking out the student loan and 401k payment, you're still negative.)

The good news for you, I think, is it looks like the raise should do alot to even out your budget. Or at least put you in a position where you won't have to cut much each month to make ends meet.

[xena]

Make the atty explain what he means about not qualifying for ch. 7 due to expenses too high. Make him explain it until it either makes sense to you, or he corrects any mis-information he is going from.

The gross of $736 will of course not be a net increase of $736. Net would be ~$625 at best - possibly lower depending on your filing status and such. But that should not have a bearing if you file tomorrow. (I'm guessing you want to file before the raise goes into effect.)

We are signing the papers today.

[xena]

Do you mean you are just turning in your paper work to the atty. tomorrow?

We are signing the paper today.

[xena]

Make the atty explain what he means about not qualifying for ch. 7 due to expenses too high. Make him explain it until it either makes sense to you, or he corrects any mis-information he is going from.

The gross of $736 will of course not be a net increase of $736. Net would be ~$625 at best - possibly lower depending on your filing status and such. But that should not have a bearing if you file tomorrow. (I'm guessing you want to file before the raise goes into effect.)

Yes we want to file before the raise takes effect.