03-17-2017 08:17 PM - edited 03-18-2017 06:23 AM
I filed chapter 13 about 13 months ago. At the time that's the only option my lawyers said I had. Seeing as how I didn't know anything about bankruptcies then, I said okay. But I was reading stuff about chapter 13 to 7 conversions and I came across a page about the means test. Apparently if you make below the median household income in your state or area, you automatically qualify for chapter 7 and do not have to take the means test. I looked over the pay stubs I sent the lawyers and added up those 6 months worth of pay and doubled it to get my pay for a year. I was 4 thousand dollars under. Shouldn't chapter 7 have been an option? Will I be able to convert using those 6 pay stubs I originally filed with?
03-18-2017 07:32 AM
I filed chapter 13 about 13 months ago. At the time that's the only option my lawyers said I had. . . But I was reading stuff about chapter 13 to 7 conversions and I came across a page about the means test. Apparently if you make below the median household income. . . you automatically qualify for chapter 7. . . I looked over the pay stubs I sent the lawyers and added up those 6 months worth of pay and doubled it to get my pay for a year. I was 4 thousand dollars under. Shouldn't chapter 7 have been an option?
Did you add up your take home pay or your gross pay? You go by gross. Further, regardless of whether or not you were above or below median and/or whether or not you "qualified" based upon Form 122, what did your Schedule I and J show? Just because you "qualify" under the means test does not equate to an automatic Chapter 7 if your real time budget (I & J) clearly shows you have the ability to pay.
There are many considerations that go into filing a Chapter 13 and, without all of the details of your case, no one on this Forum can answer your question - "Shouldn't a chapter 7 have been an option".
03-18-2017 09:04 AM
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