Second job

[phoenix44212]

My wife and I are going through a divorce and I've already looked into bk. I am hoping not to file until the end of the year when my daughter is living with me.

I may be able to get a second job PT. The question is if I do I won't pass the means test even with her with me, but then can I just quit and be ok? Any thoughts?

[CPO]

Sorry about your divorce, never fun.....

Remember, the means test calculates your qualified income for the six months previous to the date of filing, in whole months. So, income you earn from your PT job will be included on a per month basis.

Of course, each month you wait after the month you quit will lower your income total, so you must calculate your totals for each month you wait until you find yourself under the median income level.

But, the "Means Test" may not be the most important factor in your situation.

You may quailfy for a BK7 merely based on your income AFTER the Schedule I & J's are calculated. The means test is not the only way you qualify for BK7. It merely allows for the ASSUMPTION of "no abuse". It's really a red herring.

A filer could qualify for a BK7 under the means test and still be pushed into a BK13 if it is found that the filer has substancial income after expenses.

Another filer could begin a petition thinking that a BK13 is their only relief, but discover they have no disposable income after expenses and fully qualify for a BK7.

Both situations HAVE been documented.

With a dependent, I would assume in either case it would be far easier to qualify for a BK7 unless you make really great money and have few expenses.

That's not really a BK scenerio......

A suggestion: Purchase the NOLO book "How to file for Chapter 7 Bankruptcy" by Elias, Renauer and Leonard. ISBN 1-4133-0451-6.
Study it carefully. I think you will understand your position much better. A little knowledge will go along way in helping you to plan your sitrep in the next few months.

Regards,

CPO

[SinkingFast]

As CPO pointed out, there's lots of factors that go into figuring your disposable income on the Means Test.

Are you gonna remain in the Marital Home and keep up the payments on the house?? If your house payments are in excess of what's allowed for your area, that's extra expense you'll have. Not counting taxes and insurance, if you don't already escrow those into your house payment.

And, as CPO pointed out, the CMI looks back at the previous 6 months. BUT the Court does that a little funny too.

For example, you file in December,......... You're gonna have to show paystubs from November, October, September, August, July, and June. So even tho the Law says 6 months, the look back is really more like 7 months.

You could take on a part-time job for a while as you plan filing your BK. Then quit before the CMI clock would start ticking. There is a danger tho. Filing that late in the year, December, the Trustee could ask to see your '07 filed Income Taxes looking to seize your refund.

Once the Trustee sees your filed taxe, you might have to explain why your income for the year was higher than was shown in your CMI. Of course, you could always say, you had to quit the 2nd job because your daughter came to live with you.

Just some things to keep in mind.

Planning a successful BK involves making smart, but often difficult choices.