no unsecured debt

[catalina2225]

I filed last year and things have gone very smoothly for me. I recommended my attorney to a friend and he really liked the attorney. Problem is, he told my friend that without any secured debt he made too much to file and that basically he was screwed for now and that if he could get his overtime done away with and maybe take a loan against his 10 year old jeep he could then help him in a few months. His credit card bills are more than one of his paychecks each month and is having trouble making it much less giving up all overtime. Does this sound right to anyone?

[woeisme]

I don't think this is right. Having secured debt or not doesn't change whether you can file, as least not as far as anything I've ever read. If he makes a lot of money without any priority debts, then sure, the unsecured debts will get a high % payback in CH 13, maybe even 100%, but still doesn't mean he can't file. The advice to give up the overtime and better plan for the CH 13 certainly seems valid reasoning to me though.

[cool33097]

I agree with pp.

[HHM]

I think the lawyer is just being practical in that they guy makes too much money and a chapter 13 would be a wash.

[justbroke]

I thought my Chapter 13 was going to be a wash. My first plan paid creditors 100%. I was like... man... they get it FASTER than if I just paid them over 30 years (with the minimum payment). (That plan was if I got rid of both houses. I'm keeping one, so, the unsecureds will not get 100%.)