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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
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Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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I live in Washington state. I think I have have to file for

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I live in Washington state. I think I have have to file for bankruptcy. I have more than 500k mostly in unsecured business lines of credit with about 10 banks which were given out so easily years ago with no documentation required. My business has closed a few years ago and I've been just barely making the payments til this month, when Bk of America closed my line and demanded repayment in full (100k).
Even though my wife and I currently unemployed, we both plan on starting work shortly.
With the exection of about 70k (joint w/ wife), it's all under my name and social security.
My wife wants to keep paying on our home (we have negative equity) and the accounts she's on, wanting me to declare bankruptcy ALONE. In WA., the Means test income for family of five is $87,904 (7325/mo). Question: If I file for chapter 7 by myself, how is the means test affected? i.e. is it halved? So if I get a job making $5k/mo., and my wife makes $3k/mo, what is the latest I can file for Bk without being deemed as making too much. How do I calculate?

In the past year and recent months, I've had a lot of transfers to and from the line of credit accounts, my personal bank and brokerage accounts (I was wiped out trading stocks and gambling). I know all the transactions may look suspicious to the trustee if I filed now.

Question: Given my situation and amount of debt, about how far back will the trustee want to go in examining my brokerage and bank accounts? Someone told me to wait til after I had at least 6 months of very normal and obvious looking (no large transactions) statements.


My dilema is that I want to get this behind me (and before I am deemed as failing the means test); yet I want to wait until I have plenty of months of normal looking statements that the trustee or the creditor banks will not take issue with.
And also trying to figure out the ramifications of filing Bk alone vs filing jointly w/wife in WA state, a community prop. state.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  cortrightlaw replied 2 years ago.

cortrightlaw : As far as the means test go you will have to lost both yours and your wife's income even if she does not file, they will want to look at the last 6 months income for qualification purposes and the trustee will look at your last years tax return. So it is going to be hard to have enough time for the transactions to pass. Most likely you will just need to explain the circumstances to the trustee.
cortrightlaw : Also it seems like your wife should file also you do not want to be left with 70,000 in debt.
cortrightlaw :

Have I satisfactorily answered your question? If I have please remember to click the GREEN ACCEPT BUTTON so that I will receive credit and compensation for my time (doing so does not end our discussion), i will gladly clarify my response or respond to follow up questions if needed.

cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience: Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
cortrightlaw and 2 other Bankruptcy Law Specialists are ready to help you

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