I make too much money..

Anonymous · ‎06-08-2020

I want to start by apologizing for starting a thread and then removing the content from it. I was kind of confused and after looking into, I found the answer to my question. In a nutshell during my phone consultation with the attorney regarding a possible Chapter 7 he asked for the total of last year's tax return. Which I gave him, he said Chapter 7 should be fine for you. This was months ago before COVID shut down the law offices in my state. Fast forward to today in which I gave all my documents to the paralegal and the full $2335 retainer check. I then receive a call from the attorney that I fail the means test for a Chapter 7. The kicker is the income on my income taxes had deductions built in to bring the income down. Now when they look at the last 6 months of straight income, it puts my income over and not enough deductions on the mean test to make Chapter 7 right for me. So that was kind of boo. All my time and effort to be shut down with one phone call! He suggested I give up 6 months of the extra income and then file, but I'd rather not do that. I'm also the guy who mentioned about gambling prior to filing, he also made a comment about that. "I see here you have lots of extra time for online gambling" in a stern kind of rude tone." Hell I was worried about a trustee and the attorney judged me!

So how about a Chapter 13? That attorney is soon retiring and won't be starting any Chapter 13. After his comment I wouldn't want to do one with him anyway. I have a rare disease which sadly can take someone in an instant and you could be dead within 6 months. Knowing that, I don't want to tie myself into a Chapter 13 and not be able to have any fun while I can live it.

I do have quite a bit of credit card debt, but I'm going to Dave Ramsey the crap out of it and hopefully get back on track. With that said I want to thank everyone for your previous help and it's been fun following along. I wish everyone the best in your journey and thanks for listening to my rant!

FireMedic1 · ‎06-08-2020

Theres always more attorneys. Why go with one thats retiring soon. Find another and see what they can do. Never go with the first choice. Shop around.

Anonymous · ‎06-08-2020

@FireMedic1 Do you think I have any footing with another attorney? I think in the 6 months I've probably made about $2400 over the means threshold. He said he could file it, but figured it would be thrown out. My family has used this attorney in the past with no problems which brought me to him.

Anonymous · ‎06-08-2020

Getting a 2nd opinion is never wrong. Most attorneys will give you a free consultation. It sounds like the attorney you were dealing with wasn't very nice.

Here would be my concern with Ch13 for you. I think you had said at one point you had a part-time job that made up some of your income? Is that something you've done long term or plan to keep at long term? If that's considered part of your long term income then maybe the court would assume that as regular income when making up your 3-5 year repayment plan. Doesn't that basically force you to keep your second job for the duration? And for what real incentive? Yes in the event you would decide to quit your second job in the middle of the repayment plan you could file a motion to see if you could have your monthly payment reduced but that may not necessarily be granted.

I haven't done a Ch13 but it doesn't seem like it would be something you'd have a lot of fun while doing. Barely over 1/3 of people who file Ch13 plan are able to see things through to completion. At least half of the cases (data from 07-14 cases) had their cases dismissed and didn't get to completion. It seems like a very tough road.

It may well be that you'll make more significant progress via another way. Like Dave Ramsey, etc. Ch13 is a 3-5 year hard road. If you could find an alternative way to make headway on paying down debt, over the next 3-5 years, without filing bankruptcy, you may actually be even more better off than if you had filed. Good luck and all the best to you as you navigate this challenging time.

FireMedic1 · ‎06-09-2020

@AnonymousI had to cut back all OT and temp quit my second job for a few months. Once i got below the threshold. Case was filed. Once DC'ed. Right back to my 2cd job and OT again. Its all in the numbers.

Anonymous · ‎06-09-2020

Thanks for your input! So the web gets a little more deeper. I asked for the means test they used to show I was over.

They have me making $57,936.56 which is over the $54,605 in my state. So I sat down and did the math myself.

I earn $930 a week gross salary from my full time job. $4030.00 Gross

I earned an average $493.77 from my sig gig.

$4553.77x12 = $54,285. I'm waiting on the paralegal to see how she did it.

The next question comes in as far as gambling. I submitted win/loss statements from the casino. The wins get added to the income to calculate the means test. I had some winnings, but overall it was a loss. Some research online shows with a good attorney you can get a trustee to see this, but finding that attorney might be fun. The secondary one I contacted said he's not familiar. My option I guess in the next 6 months is to get either the gambling down or the side gig down to keep it under. Or a really good attorney.

Jnbmom · ‎06-09-2020

@Anonymous wrote:
Thanks for your input! So the web gets a little more deeper. I asked for the means test they used to show I was over.

They have me making $57,936.56 which is over the $54,605 in my state. So I sat down and did the math myself.

I earn $930 a week gross salary from my full time job. $4030.00 Gross
I earned an average $493.77 from my sig gig.

$4553.77x12 = $54,285. I'm waiting on the paralegal to see how she did it.

The next question comes in as far as gambling. I submitted win/loss statements from the casino. The wins get added to the income to calculate the means test. I had some winnings, but overall it was a loss. Some research online shows with a good attorney you can get a trustee to see this, but finding that attorney might be fun. The secondary one I contacted said he's not familiar. My option I guess in the next 6 months is to get either the gambling down or the side gig down to keep it under. Or a really good attorney.

You are still gambling??

EXP 780 EQ 796 TU 806

Anonymous · ‎06-09-2020

@Jnbmom wrote:
@Anonymous wrote:
Thanks for your input! So the web gets a little more deeper. I asked for the means test they used to show I was over.

They have me making $57,936.56 which is over the $54,605 in my state. So I sat down and did the math myself.

I earn $930 a week gross salary from my full time job. $4030.00 Gross
I earned an average $493.77 from my sig gig.

$4553.77x12 = $54,285. I'm waiting on the paralegal to see how she did it.

The next question comes in as far as gambling. I submitted win/loss statements from the casino. The wins get added to the income to calculate the means test. I had some winnings, but overall it was a loss. Some research online shows with a good attorney you can get a trustee to see this, but finding that attorney might be fun. The secondary one I contacted said he's not familiar. My option I guess in the next 6 months is to get either the gambling down or the side gig down to keep it under. Or a really good attorney.
You are still gambling??

I've actually quit online gambling cold turkey. Best thing I've ever done. I feel so much better and have more time on my hands. Even still with a 6 month look back, it will be tough to justify. I redid the calculation and realized I missed getting a small raise which actually put me back over the threshold anyway. If nothing else this has been a big learning experience!

Anonymous · ‎06-10-2020

I had a high income CH7 and the first atty I consulted said no. Talk to more.

It's possible you still won't be eligible, but make sure another attorney doesn't see something the current one is missing.

Anonymous · ‎06-10-2020

I was in the same boat, crippling debt but made above the state median income. I left my job and went to a job that paid nearly 50% less so I could qualify.