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?
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?
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