Must I wait out impact of bounus on six month income?

[october]

I received a $4,800 bonus from my employer in March. This causes me to fail the means test. However, I pass the means test without the bonus calculated in. Since, the bonus was paid in March do I have to wait until October to file?

It seems very unfair. The $4,800 annual bonus has the impact of increasing my annaul income by $9,600. Very odd.

Any suggestions? Can I file for a chapter 13 in order to stave off the collectors and then convert it to a Chapter 7 in October?

[lrprn]

Unfortunately yes, the bonus you received will count as income if you file before October. However, just because your are over the median income does not mean you can't file Ch 7 - you just have to work with an experienced bankruptcy lawyer in your area to see how you fare on the second part of the Means Test. If the Means Test shows less than $120/month disposable income, then you can still file Ch 7.

Be sure to write all your representatives and senators in Washington DC to thank each one of them who voted for BAPCPA in Feb 2005 for the rigid six-month lookback for income. The revised bankruptcy law is very badly written, and unfortunately you are caught up in one of its biggest holes.

I encourage you to make appointments for free consultations with 3-4 bankruptcy-specialty lawyers in your area. You will learn a great deal and get a good idea what the best options are for you and your family given your unique debt situation. Hang in there - all is not lost!

[october]

Thanks for response

Thanks for your response.

I did go throught the whole means testing process. I am above the median. but, the credit card debt is significant. Right now I'm not even close to qualifying for Chapter 7. In October, it's a slam dunk.

The overall philosophy of the new law is sound. But, the details of how it is applied has alot to be desired.

I guess we will wait for October.

Thanks.

[SinkingFast]

Get your leg work done in advance while you're waiting.

Schedule several Consult appts with BK attnys so you can find the one you wanna work with. Then you can work on saving up the attny's and filing fees. Gather together the documents your attny wants. Get those turned in and on file. Update as needed. Be all prepped.

When you get closer to your actual filing time, take care of your pre BK Credit Counseling and get your Cert.

Start saving receipts, bank statements, CC statements, letters from Collectors. You probably won't be asked for the receipts but it will help you figure out your expenses for Schedule J.

Many attnys notify not only the original Creditor, but successors too. That's why you wanna hang onto correspondence from the Collectors.

It may seem like the time will drag by, but you'll be surprised just how quick October will be here. Research and learn. Help yourself to have a successful BK filing.