INPUT NEEDED ! Would they REALLY kick me into a chapter 13 ?

[OHBOY]

Sure could use some input....
I know of the 6 month 'lookback' period, ect., ect....as it pertains to income and qualifying for chapter 7. Despite of my 'knowledge' I need some of the forum members valued opinions. Here is the scenario:

I had planned to file for bk right about the beginning of this year, but....at the end of last year I against all 'wisdom' took out a larger amount of $'s out of my small IRA. and at the beginning of this year yet another amount. Foolishly I spent both amounts without anything to show for.....
The 2 withdrawals put me into an over the limit catagory for both, the means test and also the 6 month look back and really does not make it possible for me to file until August at the earliest.

**** My only REGULAR income consists of SS only. ****

Here is what I am wondering : Do I REALLY have to wait until August to file ? Would they REALLY put me into a chapter 13 based on the last 6 month of average income that includes the 2 stupid withdrawals even though the regular income of Social Security BARELY pays my expenses ?

[HHM]

Hmm, you have been a member since 2009, have 355 posts...........................

[OHBOY]

Hmm, you have been a member since 2009, have 355 posts...........................

Yes, that is correct.......but, what's the point ?

[HHM]

I guess I am wondering why you haven't pulled the trigger yet (I suppose I could read your old posts, but not really the best use of time).

[OHBOY]

I guess I am wondering why you haven't pulled the trigger yet (I suppose I could read your old posts, but not really the best use of time).

Initially since I am actually collection proof I thought I could get along without bk. However, eventually I ended up with a judgement and I find the whole court process stressful (especially since I managed to drag on for quite some time...just unfamiliar territory). Hence the decision to 'get it over with'.

[HHM]

To answer your question, the most conservative approach is to wait.

However, since these were IRA withdrawals, you really shouldn't run into any serious problems due to the Lanning decision.

Just think, had you pulled the trigger 3 years ago, you probably wouldn't be hanging around this forum, would have moved on with your life and been much more stress free. This is why I almost never recommend the "collection proof" route. It is a stubborn fools errand.

[OHBOY]

To answer your question, the most conservative approach is to wait.

However, since these were IRA withdrawals, you really shouldn't run into any serious problems due to the Lanning decision.

Just think, had you pulled the trigger 3 years ago, you probably wouldn't be hanging around this forum, would have moved on with your life and been much more stress free. This is why I almost never recommend the "collection proof" route. It is a stubborn fools errand.

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This stubborn old FOOL at this time finally totally agrees with your sentiments, and yes, IF I had to do it over again I certainly would take the much less stressful route.
THANK YOU FOR YOUR INPUT !

[tobee43]

well, all you can do is look forward now to better things.

since the lanning decision chose to use the basis “forward-looking approach” as correct, (sorry have to add a perfect example from hhm), i would likely think you'd be fine and those two withdrawals were of a temporary nature and not a constant source of regular income. also in that decision it was clarified to a degree.

'In re Richardson, 283 B. R. 783, 799 (Bkrtcy. Ct. Kan. 2002); Tr. of Oral Arg. 7. Accord, 1 Lundin §35.10, at 35–14 (2000 ed.) (“The debtor should take some care to project estimated future in come on Schedule I to include anticipated increases or decreases[in income] so that the schedule will be consistent with any evidence of income the debtor would offer at a contested confirmation hearing”).

BAPCPA left the term “projected disposable income” undefined but specified in some detail how “disposable income” is to be calculated. “Disposable income” is now defined as “current monthly income received by the debtor” less “amounts reasonably necessary to be expended” for the debtor’s maintenance and support, for-qualifying charitable contributions, and for business expenditures. §1325(b)(2)(A)(i) and (ii) (2006 ed.). “Current debtor’s monthly income during what the parties refer to as the 6-month look-back period, which generally consists of the six full months preceding the filing of the bankruptcy petition. See §101(10A)(A)(i).1

The phrase“amounts reasonably necessary to be expended” in §1325(b)(2) is also newly defined. For a debtor whose income is below the median for his or her State, the phrase includes the full amount needed for “maintenance or support,” see §1325(b)(2)(A)(i), but for a debtor with income that exceeds the state median, only certain specified expenses are included,2 see §§707(b)(2), 1325(b)(3)(A). "

it goes on and on, however, that withdrawal from your IRA can be easily explained away. the lanning case dealt mainly with a chapter 13 which for some reason is not where i think you are going with only having an exempt SS income.

i would discuss this with your atty, i don't know, how much money you took out, but even if you used it all up for living expenses it's explainable. i USED IT for living expenses, food, gas, clothes medical, etc. i mean unless we are talking a million bucks here.

don't be stressed, again, i think this can be easily explained away, the court will see your ONLY income, which most likely you have auto deposited into your bank account monthly and can prove and, prove it is only your ss. i think you have a shot at it. again, see what your atty thinks. best of luck!