Question on Chapter 13... PLEASE HELP!!

[mesa777]

I have lots of credit card bills, two cars, one I owe $5000.00 on, its a $25000 vehicle and one that I still owe quite a bit on... I own a home, first + second mortgage.

My question is this.. If I can barely get by on what I currently make why is my attorney trying to tell me that I have to file a Chapter 13??? How the hell am I going to pay it every month? I make $52000 a year however can barely get by each month...

I am now also being told that I will probably lose my cars??? HELP!!! Can someone please give me some information on this....

I am broke as broke can be here.. I have about $40K in credit card debt, house is maxed out, no equity in the house... Would I be better off to just let the home go back to the bank and move into an appartment before my credit is completly shot???? HELP

[aa06a47]

If it were me, since there is no equity in the home now, and since real estate prices are not going higher anytime soon (in my opinion), why go through bankruptcy and come out still strapped to a house payment that will keep you broke.

Right now, credit rating should not be a concern. A forclosure will trash your credit and if you don't file, your still going to be strapped with 40k in credit card debt, + the mortgage company will come after your for the difference in what you sell the home for vs what is owed.

In my opinion, given the information provided, BK will help you alot, also giving the house back...etc.

[dscurlock]

I have lots of credit card bills, two cars, one I owe $5000.00 on, its a $25000 vehicle and one that I still owe quite a bit on... I own a home, first + second mortgage.

My question is this.. If I can barely get by on what I currently make why is my attorney trying to tell me that I have to file a Chapter 13??? How the hell am I going to pay it every month? I make $52000 a year however can barely get by each month...

I am now also being told that I will probably lose my cars??? HELP!!! Can someone please give me some information on this....

I am broke as broke can be here.. I have about $40K in credit card debt, house is maxed out, no equity in the house... Would I be better off to just let the home go back to the bank and move into an appartment before my credit is completly shot???? HELP

how much is your house payment? if it was me, find a much cheaper car to get around in, and find a cheap apartment (do this before you file) then let the house, car and your credit cards go into chap 13...your payment will probably be much lower then what you are paying right now...it takes a very good salary to have a decent house and car...and your atty is telling you to file chap 13 because you make to much to file chap 7.
im not sure what your level of income has to be for your state in order to file chap 7, you have
to ask someone else that.

[hansky]

I have lots of credit card bills, two cars, one I owe $5000.00 on, its a $25000 vehicle and one that I still owe quite a bit on... I own a home, first + second mortgage.

My question is this.. If I can barely get by on what I currently make why is my attorney trying to tell me that I have to file a Chapter 13??? How the hell am I going to pay it every month? I make $52000 a year however can barely get by each month...

I am now also being told that I will probably lose my cars??? HELP!!! Can someone please give me some information on this....

I am broke as broke can be here.. I have about $40K in credit card debt, house is maxed out, no equity in the house... Would I be better off to just let the home go back to the bank and move into an appartment before my credit is completly shot???? HELP

Your questions should be addressed to the lawyer, who will probably be glad to tell you why you were advised to file a 13. If getting rid of the house, and perhaps a car, frees up your cash to pay off debt without bankruptcy, then of course that is a better option than bankruptcy.

[JollyGG]

What state are you in?

[dscurlock]

Your questions should be addressed to the lawyer, who will probably be glad to tell you why you were advised to file a 13. If getting rid of the house, and perhaps a car, frees up your cash to pay off debt without bankruptcy, then of course that is a better option than bankruptcy.

by getting rid of the house and car too "free" up money, he would probably end up in bk due to forclosure and repo.

[mesa777]

My car WAS paid off until I made a MAJOR mistake and went to Las Vegas.... I now have a $5000.00 loan against my vehicle... called a BK attorney and he said that I would end up losing this vehicle as in AZ we can only have a vehicle worth $5000???? I AM CONFUSED!!

I assume that I can just transfer the vehicle into someone elses name and file BK a year later...

Please HELP!!!

[leftyf]

I know the feeling...I'm about $5K over median and the first few attorneys I met with instantly concluded that I would have to file a 13? The last one I met with actually ran some numbers and is pretty confident that I will pass the means test and can file a 7...of course, she only has about 3 years experience so I am kind of nervous. But, 3 years should be enough to get to know the local trustee, I would think? Oh well, a conversion to 13 probably wouldn't be the worst thing in the world, but based on the budgets I keep trying to make, I don't really know how it is possible. In fact, I'm still running about a grand over my income every month. I don't even think I'll actually bother filing until I can get this balanced...btw, that's a grand without paying any unsecureds. No gambling problems or drug problems, but I do drink about $150.00 worth of liquor every month.
Lefty

[lrprn]

My car WAS paid off until I made a MAJOR mistake and went to Las Vegas.... I now have a $5000.00 loan against my vehicle... called a BK attorney and he said that I would end up losing this vehicle as in AZ we can only have a vehicle worth $5000????

Arizona motor vehicle exemption is $5000 for one vehicle - http://www.bankruptcyaction.com/azexemptions.htm . You have two cars, correct?

Looking at the car you want to keep, if you subtract the car's current value from how much you owe on it (including the $5K lien), how much is that?

I assume that I can just transfer the vehicle into someone elses name and file BK a year later...

That could be a very bad idea because it might open up a potential trustee charge of deliberately hiding assets which could get your case dismissed - a very bad thing. You must get an experienced AZ bankruptcy attorney's advice about this before you do it.

[rrockinggramma]

In a chapter 13 you would be able to keep both cars but the equity not exempted would be calculated into the amount that would have to be paid back to creditors. In a chapter 7, the trustee would make you pay him for that equity or sell off the vehicle and distribute the monies to your creditors. Second opinions are always a good idea when it comes to lawyers but if you stopped paying your credit cards each month and only had your mortgages to pay and possibly your vehicles (if not included in your plan) would you have disposable income?