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  1. #1

    Default Lost Job - What is Median Income Based on

    My question involves bankruptcy in the state of: TX

    I recently relocated to TX for a new position. I have since lost that position and have no employment prospects on the horizon. I have a home in Missouri that was purchased as a 2nd home initially and was never occupied as a primary residence.

    I am now 60 days behind on my mortgage and was trying to negotiate a Deed-in-lieu when lender contacted listing agents managing broker to obtain valuation opinion and the managing broker came in with a value of $250,000 on a home that I purchased 2 years ago for $395,000 and currently owe around $350,000. The lender stated they will not consider a Deed-In-Lieu at this time since the property has not been listed at 'market value' even though my realtor assured me that it was (around $375,000). I honestly think the realtors are conspiring at this point because I have a verbal offer on the property for $225,000 which was submitted by the very same managing broker. Needless to say I will be attempting to do a short sale but who knows how that will go.

    Anyway - I have cash in the neighborhood of $40,000 but no savings beyond that such as IRA, etc. I have one vehicle that is paid for, a motorcycle that is paid for and a ski boat that I owe what it is worth. I currently rent a home and have very small credit card debt. Basically very little monthly debt other than rent, 2nd home (1st and 2nd), boat payment, utilities, food, etc.

    My biggest concern is the 1099C that I'm going to receive if the property is foreclosed plus the fact that I did an 80/15/5 to purchase the property and don't know if the 2nd is non-recourse and am assuming that it's not. It was a fixed 15 year 2nd mortgage not a line of credit so help on that would be appreciated as well.

    I also made a huge mistake liquidating my 401k this year to become debt free when I moved to TX not anticipating a loss of employment. Any way to refund the 401k with the current cash assets that I have which were proceeds from 401k?

    Anyway - my income when employed exceeded the median income level by a wide margin so my biggest question is: Is the income used to qualify for a BK current income which is $0 or annual income YTD?

    Thanks in advance for your help.

  2. #2
    Join Date
    May 2008
    Location
    Louisville, KY
    Posts
    1,877

    Default Re: Lost Job - What is Median Income Based on

    I believe it is the income for the three months prior to filing.

    Good luck!

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Lost Job - What is Median Income Based on

    re the median test - You have to figure out your average monthly income during the six months preceding bankruptcy & multiply by 12 to see how you measure up against the median. The six month period is determined as ending on the last day of the calendar month immediately preceding your bankruptcy. If you earn less than the median income, you don't have to worry about the means test.

    You might want to talk to a bankruptcy attorney to get all your questions answered.

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