Question about Increased Income

[littlered1003]

I filed Chapter 7 Aug. 9th. My 341 is scheduled for Sept. !st. I am filing by myself. My husbands income has increased the last 3 weeks or so since I filed. This is a temporary increase due to the company firing one of the employees. My lawyer told me to bring most recent paystubs,last bank statements received and most recent cc statements,plus ss card and drivers liscense to the 341. Can this increased income cause my case to be dismissed or changed to a 13? Thanks for any input about this. I was already worried and now I am about to lose it.
Thanks,
Gina

[ccidiot01]

I'm no expert, but after meeting with a couple of atty's and reading this board for weeks I'll offer this:

Remember that even if this income is taken into account, it will still be averaged out over 12 months. So unless you're talking a ridiculous amount, it should not have a huge effect on your income numbers.

Also, I have to believe that the Trustee will consider your explanation for the increase in income and make a decision based on that. Perhaps you'll need to provide a little more documentation to prove that the increase is temporay.

Again, no expert, but those are my thoughts based on what I've seen/heard/read.

[BassBoy]

I had a similar situation, however we were in the negative every month and then 3weeks after we filed, I got a new job with a higher salary, but it still didn't get us out of the negative. Is this the case with you and hubby? If you are in the negative, will this temporary increase put you and hubby in the positive? IMO, if the increase in pay won't pull you and hubby out of the negative, then I don't see the increase being much of a problem

[edwards2]

Gina - I agree with the other guys...unless it is significant I would not worry....FYI we had the same kind of anxiety over something similiar. My car was due to be paid off a few months after we filed. I fully expected the trustee to start figuring how much we could afford to pay ala Chapter 13 because of the increase in disposable income. Granted it was only $230 but I was still sweating bullets. To add insult to injury we ended up having to do a face to face with the U.S. Trustee and she did bring it up. I had already decided that would be the proverbial nail in the coffin. I recall looking over at my lawyer and thinking we are about to be converted...however, she told us more than likely my car was still considered the collateral for a personal loan we had with the Credit Union which is where my car was financed...I didnt know that but was so relieved she thought so. So bottom line I dont really know how the trustees are handling cases now since ours was done pre-new BK law but I cant imagine that something temporary could shove you into a Chapter 13. Keep us posted.

[littlered1003]

I have about 36.00 in the positive, however my attorney did not list my husbands expenses since he is not filing and he didn't think it necessary since I only had 36.00 left over. The increase is aprox. 800.00 in a month, so averaged in with the previous months for the year doesn't add but aprox. 100.00, however his truck payment and ins etc was not listed. This increase will only be until they get another driver, I would think with in the next month.
Thanks for all the support. I am so anxious for this to be over.

Gina

After averaging before the increase his monthly average was 3355.00 per month. After the increase its 3461.00 per month based on the past 8 months.I estimated aprox. his check for this next payday.
What do you think? Should I contact my lawyer about this?

[BassBoy]

It couldn't hurt to ask your attorney about this. Approximately $100 a month additional is not that much. LOL...although I could imagine the trustee would druel over every $100 he/she could get their hands on. My new job was an increase of the same as your hubby's, but half of that increase went to my medical insurance plan. Yes, I pay 45% of the monthly premiums, but the coverage is the best I've ever had. Anyways, we were still in the negative, so it made no difference. Hopefully, the $100 temporary increase won't make the mouth of the trustee water like a hungry wolf.

[ccidiot01]

I'm certainly showing my ignorance here. I didn't realize you would have to include your husband's income if he wasn't filing...

[littlered1003]

Our motgage is joint, so my expenses had to in clude some joint expenditures.
Mortgage , utilities, groceries etc. The attorney didn;t list his personal expenses of vehicle payment, insurance, taxes ,life ins. etc. He felt we didn't need to list these expenses. Now I wish he had.

[littlered1003]

I would like to find out what states he is liscensed in. If you could forward his name and phone# or e-mail.
Thanks.

[anonymuse]

If I were you (but I'm not a lawyer), I would make sure I would bring a few more months of paystubs to show that the pay is consistently lower. I'd rather be safe than sorry and have the information with me right at the time of the 341 meeting to be able to respond immediately to any potential questions.

[littlered1003]

341 Meeting

I had my 341 meeting Friday morning. It was SO easy. Just a few questions. I was about 10th-12th on the list. They started at 9:00 and I was out of there by 9:25. It really helped reading the post on this forum. Thanks to everyone who answered questions for me and also just for the post. Now I have to just wait until October 31st, for objections.

I had had a really lousy week and I was REALLY nervous. My dad had been in ICU since Tuesday. I lost my wallet with my liscense and SS Card. I had to go apply for a new SS card on Thursday and get new liscense. I didn't know if they would accept the receipt they gave me at the Social Security Administration or not. It was no problem. I am so glad to have this much behind me. Looking foward to the future.

Also I have a question, I received a bill today from one of my creditors that was listed. Should I just send them my case #. Iknow they should have got notice. This letter was dated Aug.30th and I filled Aug. 9th. If anyone has any suggestions as to handle this I would appreciate it.

Best of Luck to everyone,
Gina

[9877donna]

Gina,I'm glad to read your 341 went really well.Congrats.I do have a question though.Was your husbands income included in your bankruptcy?And were 'Total' expenses for the household put on Schedule J: Current Expenditures of Debtor??
I was told all 'household' income needed to be included wether they were filing or not.Did you pass the 'Means Test' with you hubby's income included?
Sorry for all the questions.

[lrprn]

I had my 341 meeting Friday morning. It was SO easy. Just a few questions. I was about 10th-12th on the list. They started at 9:00 and I was out of there by 9:25. It really helped reading the post on this forum. Thanks to everyone who answered questions for me and also just for the post. Now I have to just wait until October 31st, for objections.

I had had a really lousy week and I was REALLY nervous. My dad had been in ICU since Tuesday. I lost my wallet with my liscense and SS Card. I had to go apply for a new SS card on Thursday and get new liscense. I didn't know if they would accept the receipt they gave me at the Social Security Administration or not. It was no problem. I am so glad to have this much behind me. Looking foward to the future.

Also I have a question, I received a bill today from one of my creditors that was listed. Should I just send them my case #. Iknow they should have got notice. This letter was dated Aug.30th and I filled Aug. 9th. If anyone has any suggestions as to handle this I would appreciate it.

Best of Luck to everyone,
Gina

Great to hear your 341 was uneventful, Gina - now you can relax a little!

So sorry to hear about your dad's poor health. I hope he's doing a little better today.

And about your creditor's bill in the mail - it can take 4-6 weeks for the bankruptcy notice to wind its way through the maze of financial departments at big companies these days. I would keep this bill but obviously do nothing with it for now. If another bill arrives next month, let your lawyer know so he/she can send a 'bk nastygram' their way - that should take care of it.

Hang in there - you are on your way to discharge!

[littlered1003]

Thanks for the info.I had no idea what it meant. I haven't been discharged yet. Last day for objections is Oct. 31st. Planning on challenging several entries after discharge.