Advice needed. Chapter 13 with potential conversion to 7

[Leesa0926]

Hi all 

We are planning to file but due to the way my income works it is currently up right now due to stocks my company has given me as income.  I've already looked and there's no way around it currently but I expect around June of this year my prior 6 months will drop enough to qualify for the 7.  There is no guarantee however so the attorney suggested we file the 13 now and then look to potentially convert if the income changes. 

My current means test shows I have disposable income of close to $400.  Based on what I know about my income and the stocks I receive it will be at least 500 less a month going into next year. 

Does this make sense am I missing something?  

If I was a couple years until a 5-year plan I could see just keeping it but if it's within the first year the conversion makes sense I just want to ensure that I understand this correctly.

[MyAZLawyers]

Your attorney’s advice makes sense given your current situation. Filing Chapter 13 now allows you to start the process and benefit from creditor protection while keeping the option to convert to Chapter 7 open if your income decreases. The means test for Chapter 7 eligibility is based on the prior six months of income, so waiting for your stock-related earnings to level out could make conversion possible later. It’s important to ensure your disposable income calculations are accurate, as any significant changes could impact the feasibility of conversion. Keep detailed records of your income and expenses, and stay in close contact with your attorney to determine the best timing for a potential conversion. My credentials? I’ve been 10 years working at My AZ Lawyers, located in Mesa.