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Ask WA Bankruptcy Lawyer Your Own Question

WA Bankruptcy Lawyer
WA Bankruptcy Lawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 25
Experience:  30 years practice. Author of several articles.
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I am considering bankruptcy and was told I cannot file

Customer Question

I am considering bankruptcy and was told I cannot file Chapter 7 due to income. I am just a little above the cut off. I have not filed yet. Can i quit my job and then file with no income ? Would it then qualify me for chapter 7 instead of 13? Is there a time period that I would have to be unemployed?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
I think that you need to find a better bankruptcy lawyer. What is your secured debt? Normally a car payment and/or a house payment will tip the balance on the means test. Without exact numbers and a location it is impossible todo the analysis, however, with proper planning a Chapter 7 ought to be possible. That is IF bankruptcy is a real option.
WA Bankruptcy Lawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 25
Experience: 30 years practice. Author of several articles.
WA Bankruptcy Lawyer and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
my home is 330,000 and I owe 20,000 still on my car. I have a 7 thousand credit card and about 4 different student loans 2 secured and 2 unsecured. Thats it. I wouldnt be filing at all but my fiance' who i had purchased the home with decided to have a unknown to me different life on the side and was selling cocaine. He was recently incarcerated. So now Im losing everything plus feel like I didnt know him at all for the past 4 tears. Im only 27 years old. The attorney I went to is a bankruptcy attorney and she did the new BK means test. The problem is that I work in sells. I have a base pay of 38,000. I make commission but it is always different and never guaranteed. My YTD is 22 thousand so she figured if I continued Id be close to 64 for the year. As of june 1 the commission structure has changed and it will be about half of what has normally been. That sucks! well anyway with all this she told me that I would have to pay about 500 plus my car payment of 431 in a chapter 13 for 5 years! Does this information help anymore?>?? I really just need to know if quitting my job would help> ? Or would I be penalized for quitting? I have been offered another position that I could choose the start date. Oh and I am in the state of AZ, Please advise.
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
Given those numbers, I think you need another bankruptcy lawyer. Are you planning on giving up the house?

For 7,000 of dischargeable debt, I'm not sure what benefit any banruptcy is but that is another question.
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
I have one other thought. If you quit your job to qualify, there are problems. If you quit because they changed your commission structure and you are unhappy, this is another reason.
Customer: replied 6 years ago.
Reply to WA Bankruptcy Lawyer's Post: yes I am giving up the home. I moved out already
Customer: replied 6 years ago.
Reply to WA Bankruptcy Lawyer's Post: so what you are saying is that I could quit the job due to the change in commission structure without any repercutions? Then I could file Chapter 7 because i would have no income>? Do you hae any idea how long I would have to be unemployed before filing? And I am going to accept after we are done here! You have been more helpful to me than you know! Thank you. Its a tough time.
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
It is motive. I would move back in and then the house payment is clearly deductible from the means test. I think that it is anyway and the majority of the caselaw says that it is. That is why I think you need a better bankruptcy lawyer.

Quitting to meet the means test is a no no. Quitting for another purpose is a different question. Then it becomes a factual question of why you quit, what were the reasons, etc. You had be better be able to justify it. The means test looks back 6 months. The period of unemployment needs to reduce your income by that amount and I can't do the calculation.

Bankruptcy is always a tough time. More difficult than anyone thinks until they have to go through it.

Customer: replied 6 years ago.
sorry! I had a technical problem and couldnt get on the site!   I was in a panic!   Let me see if I understand this....I would have to be un employed for 6 months? My income changes all the time due to commissions and yes I am very much thinking of leaving due to the restructure, it takes almost 50% of commission capability away! So would I have to be out of work for that long? I was hoping like 3 months! I cant move back into the house because I signed a lease on my apt for a year! Also they are doing the sherriffs sale in Aug if I dont file bk.
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
No, your income has to be lower than the median. I don't know how long that takes. I think with the house payments and the car payments you are there. That's why you need a new attorney. The one you have is giving bad advice about the means test.
Customer: replied 6 years ago.
Reply to WA Bankruptcy Lawyer's Post: If I were to quit today my year to date is 22,300.00   That is certainly below the median. She told me that in order for me to file chapter 7 I would have to make less than 40,000 for the year. So if i had no more income then Id be below....right> ??? IM sorry if Im not understanding!
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
It is 6 months, not a calendar year. Your attorney does not understand the means test or is taking the easy way out. I don't know how to say this any more clearly but you need an attorney who knows what (s)he is doing and the one you are consulting clearly does not.

And 22,300 for 6 months is clearly more tnan $40,000 per year.
Customer: replied 6 years ago.
Thank you! I do understand what you are saying about needing a different attorney! Any suggestions? Do you know any in AZ? Where are you? Id use you! =) Well thanks again for all the time you have spent helping me! I truly appreciate!
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
XXXXX XXXXXp in Phoenix should know someone.
Customer: replied 6 years ago.
Reply to WA Bankruptcy Lawyer's Post: I will contact XXXXX XXXXXp then. Thank you again and have a great week!
Expert:  WA Bankruptcy Lawyer replied 6 years ago.
Another option is Hal Campbell
Customer: replied 6 years ago.
Reply to WA Bankruptcy Lawyer's Post: Hi again. Just thought Id let you know that I contacted Tiffany and Bosco where the first attorney name you gave me was. I spoke with an attorney there and you are very right that the attorney that I originally went to was wrong in her calculations! IT should have been the house payment not the rent. That more than doubles the expense amount. He said I do not have to live in the house, that i just have to still be the owner. He also talked me out of doing any bankruptcy. Told me to let the house go to the sherriffs sale. He said there is a statute in the state of AZ that protects from being sued by the 1st mortgage co after a house has sold in foreclosure or sherriffs sale. He did say the 2nd motgage co could sue but in all the thousands of BKs he has done not one time has a 2nd ever sued. So it looks as if I will lose the house which is fine under the circumstances but I maybe wont have to file Bankruptcy! To be honest, its very good news for me! I thank you the most because had I not contacted you I would never have checked with anyone else because I wouldnt have known the first attorney was wrong! THANK YOU THANK YOU!

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