I live in Washington State and I think I have to file for chapter 7
. 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 exception 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, preserving her credit. 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? (We have no employment income for past 6 months and our 2011 adjusted gross income is 66k on capital gains). 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 dilemma 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.