top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Perfect outcome? Or wishful thinking?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Perfect outcome? Or wishful thinking?

    We went to the attorney today, hearts set on Ch 7. We are well over the median, with income of 100k or so, debts, all CC of 70k.

    Here's where it gets fun.

    Our only SECURED creditor is our mortgage-which is up to date and not at all behind. We have 130k in equity, but we are in Florida, and ALL equity is protected as homestead for us. Untouchable.

    Our Liquidation value is about 12k worth of nonexempts, including 2 cars (paid off) and a few business tools worth nothing to anyone except me.

    Our expenses lined up almost EXACTLY to the IRS schedule, except a couple things that are easily corrected. For instance, it appears we MAY have 800 bucks disposable. Attorney says, we will make part of it disappear if needed. Surely theres a legitimate and honest way to expend 550 or so of it on a REAL business expense that is beyond reproach.

    In fact there is. Several. Advertising that I cut from our budget 2 years ago to pay CC debt. Wife is a commissioned realtor who can rent office space at her realty company for 500 a month. Either way, the courts will let it fly.

    End result=$250.00 per month to pay into a plan for 5 years.

    Creditors cannot object, as none are secured, except mortgage. We can pay that (3600 a month) easily without the CC debt being a factor.

    Creditors cannot object, as all assets have been properly appraised, values confirmed. Plus, they get a little MORE than they would have in a CH 7 liquidation.

    For the trustee, our expenses are neatly in IRS guidelines.

    Further, the attorney suggested we go drop one car on a "fire sale" basis to drop the assets even further, then use that to pay a bit toward housing (mortgage, repairs) that can be fully documented-for instance, making our FULL mortgage payment instead of interest only, as we had been.

    Now, we should be able to pay all our bills, including a full mortgage payment and only 250 into a plan.

    Finally, we were current on all our CC's until now, so there is time to let the new expenses reflect on our budget. We wills top paying CC's next week, which still makes me trembly all over. But he says we need to.

    Am I dreaming, or did the Gods of BK, if such a thing existed, smile on us for once in the last 5 years?
    Last edited by DeadManCrawling; 04-20-2007, 03:07 PM. Reason: clarify
    11-20-09-- Filed Chapter 7
    12-23-09-- 341 Meeting-Early Christmas Gift?
    3-9-10--Discharged

    #2
    wow....how do you pay a 3600 mortgage on 100,000 per year? I have a hard time with 2000 on 130,000 per year! Now for the answer to your question....my advice would be to see at least 2 more attorneys for a free consultation and see if you get the same answer. Hopefully its as easy as it sounds. BK does not always have to complicated. Mine was pretty easy in the old law. Keep us posted!!
    Chapter 7 Pro Se....Discharged Feb. 2006

    Comment


      #3
      [QUOTE=cindylynnsmith;87942]wow....how do you pay a 3600 mortgage on 100,000 per year? I have a hard time with 2000 on 130,000 per year! [QUOTE]

      I guess the short answer is. . .BARELY. We cut to the bone without knowing it, which is why our expenses mostly line up at or beneath IRS guidelines. Additionally-and this is essential I suppose, my company reimburses in BEFORE TAX dollars for a third of most home expenses-mortgage itself, repairs, utilities, upkeep. My company utilizes the entire second floor-1400 sq feet, for offices and studios-legitimately. It really takes that much space to do what I do-and our accountant says, "If the trustee asks, invite him over for coffee." Accountant has actually been here, and is a fulltime CPA, confident that the deduction is good.

      As he says, "Where in your county can you RENT a space of 1200 sq feet for 1200 bucks a month to conduct business?" Nowhere, so the deduction for business is more than legitimate, its a bargain.
      Last edited by DeadManCrawling; 04-20-2007, 04:03 PM.
      11-20-09-- Filed Chapter 7
      12-23-09-- 341 Meeting-Early Christmas Gift?
      3-9-10--Discharged

      Comment


        #4
        added above-referencing company expenses
        11-20-09-- Filed Chapter 7
        12-23-09-- 341 Meeting-Early Christmas Gift?
        3-9-10--Discharged

        Comment


          #5
          Definitely get that 2nd opinion but it sounds pretty cut-and-dry like ours was. No car payments. Our mortgage was current and our 341 meeting was a 30-second breeze. I think the trustee asked us like maybe 3 easy questions. After the 341 our attorney pulled us aside to give us a paper with info about the confirmation hearing. He said "Hey, you guys are set, nothing to worry about. You have a perfect case." That was good to hear. In fact, 3 yrs and 36 payments later we are waiting for our discharge, and I'm looking back thinking -- our payment stayed the same all 3 yrs, we've never had a problem with creditors or the trustee -- it really is possible to have a halfway decent BK!!

          Comment

          bottom Ad Widget

          Collapse
          Working...
          X