I'll try to keep it as brief as possible-- Currently, my wife and I have about $60k in revolving debt--won't go into details on why, the $$ stacked up over the last 7-8 years for a variety of reasons--we hold no one accountable but ourselves. Two mortgages, no car loans, one student loan (mine--$10K), no medical bills or anything extraordinary... Her job: $30K/year. My job: recently took a different job that I start next week--income going from $42,500/year to $34K/year (again, not all the gory details, but the 60-70 hour weeks and the stresses thereof reached their breaking point)... I've used one of the online bk calculators to see where I might stand--with my old job, we couldn't file a 7, only a 13--now with my new income, the calculators indicate we most likely are under the wire as far as the means test goes for a 7. A month ago today, I sold our truck--came out $4K ahead (we just didn't drive it enough to justify keeping it, plus with gas @ $2.67/gallon)--anyway, the surplus is in the bank. Today, I requested distribution on my 401K from old job, with intent to roll into new job 401K within 60 days (already taking hit for 20% taxes and 10% early withdrawal, although now that I think about it, I may be able to recapture or escape 10% since going into new plan)...rollover amount will be a little over $7K (if I understood everything right). As far as equity in home, it's negligable after the first two mortgages are factored in. Vehicles--now down to 2--a '92 Geo that I drive (like the Energizer bunny) so I'm not worried about that asset. Wife's is a '99 Subaru, with no lein, but value looks to be $3075 (private seller average Kelly Blue Book value). Here's where I need input (especially if you've "been there/done that"): 1) I realize last 6 months wages are usually looked at, but what sort of impact does a sudden 20% pay decrease have on filing (7 vs. 13)? 2) Recent sale of truck and excess proceeds. 3) 401K--from what I've read, a 401K is exempt, but does rolling it out of one company and into another throw a huge monkey wrench into everything? Any input is greatly appreciated. Thanks.
I can give you my experience with the sale of the vehicle- When me and my ex were filling we had three vehicles, are attorney asked us if we could sell one of them that way the court would not take it, so we did! we had no problems because of this. We kept the money end of story.
