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Bankruptcy and Wages Question - When to File?
Media, PA
Viewed 34 times.
Posted 6 months ago in Bankruptcy / Debt
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My wife and I believe we need to file for bankruptcy. But we have a situation. My wife is from Europe and she has to go there for a medical emergency for her father. She will be gone until August 1. We understand that when you file, you compute the prior six months salary.
She will leave at the end of this week, and this time off is unpaid. Is it best to wait until August to file so that the average monthly salary will be a lot less? We weren't sure if this would be considered a fraud issue. Secondly, she had to take the remaining bit of savings, close to 5k, to pay for the expenses of travel, and essentially taking care of living expenses while there. We have all documentation to prove her father's condition and all the signed FMLA papers. Would this look unfavorable to a BK trustee? Answers (1)
Jeffrey Daniel Larkin
This attorney is licensed in California.
Posted 6 months ago.
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The $5k expense will not be a problem. Whether or not you should wait to file to decrease the 6 month income calculations depends on whether you pass the means test currently.. If you don't, then waiting is a good idea if you want to file chapter 7. Provided 1) you pass the means test and 2) your current income is eaten up by reasonably necessary living expenses then you should be fine for chapter 7. If your wife will be returning to work upon her return from Europe you need to make sure her income is disclosed on schedule "I" and that you have sufficient expenses to offset it. If she files jointly with you, she will have to attend the meeting of creditors about 1 month after the case is filed so you will want to factor that into the equation as well.
LEGAL DISCLAIMER Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case. |
