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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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OK. I understand then that I cannot use the business losses

Resolved Question:

OK. I understand then that I cannot use the business losses to qualify me for ch 7 liguidation......now, I have just agreed to resign my job in return for weeks of severance pay (weekly salary for 4wks) and a check for 3 wks. unused vacation pay. Now that I do not have a job right now, and even though my wife and I had salary income exceeding $120k over the last 12 months, now that I do'nt official have a job, would the court allow me to file ch 7.....in other words, what do they consider my income level to be, respective to ch 7 consideration: what it was forthe last 12 months?; or YTD?; or 2010 tax year?...and, say I file ch 7 on 7/10 and on 7/10 I don't have a job; then on 7/15, before the first hearing, I get a job, what then? do they consider that new income amount that is effective with the new job beginning 7/15, and then disqualfiy my ch 7 because I would be earning too much?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi again,

How many are in your household?

Customer: replied 6 years ago.

Well, that is a good question. I am in the process of filing my tax return for 2010 (extension). I have a wife and four children and file a joint return, and although that is so, my accountant is recommending that this year my 2 boys (ages 24 and 22, not married and full time students but with co-op income), cpa says they should file amended returns for 2010 showing them independent since there is no real consequence to my return and a benefit for them (eligible for better return $ by filing as independents). When I just now called her to ask this question from you, I told her I was considering filing bk and she said that I should ask if, under a bk filing, it might be better if the boys don't make the change and if I do file bk, would that be a better benefit to me and my wife in bk. (them not filing as independent). (Note: cpa also said that just because they may file as independent, that may not necessarily mean they are indeed excluded as household members. They do have college loans and pay there own rent on campus.) My girls (other 2 kids) definitely are part of the household along with me and my wife.

Expert:  cfortunato replied 6 years ago.

Do the college students live with you during the summer recess?

Customer: replied 6 years ago.
yes
Expert:  cfortunato replied 6 years ago.

Then the college students would be considered to be part of your household for Bankruptcy purposes.

With a household of 6, you are allowed to have a net gross monthly income of $6,052 ($72,624 annual gross income) at the time of filing. The court determines this by averaging your gross monthly income for the 6 months prior to filing.

When you file, you are asked if you anticipate your income to increase within the 12 months after you file. "Anticipation" means anticipation of an actual job, not the possibility that you might find work. At the trustee meeting (one month after filing), you will be asked if anything has changed since you filed your Bankruptcy. If you answered "no" to anticipating an increase in income, and also answer "no" to the question about changes, that is the end of the inquiry. (There is no duty on the part of the Bankruptcy filer to notify the Bankruptcy court - after the trustee meeting - if his or her income increases in the following year.)

 

Again, I think this is what you wanted to know. If not, please let me know.

Thank you!

 

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