Hi.
Originally went to a lawyer to discuss a Chapter 7 and he concluded that I did not qualify and that the US Trustee would balk at my filing. the reason given, too much short term debt compilation and possible abuse of available credit. I've posted a few questions on the Chapter 7 forum and received feedback that maybe I should look over here for an alternative. Here is all of the data:
Creditor #1 $70k (line of credit and 1 credit card)
Creditor #2 $45k (same as above)
The above amounts were used to open and operate a business when I lost my job last summer. I also have a mortgage and equity line of credit. I find out today from my real estate agent if I can sell my home for what I owe. If not, the 2nd may need to be rolled into this. I will need to relocate out of the state in order to find appropriate work.
According to the IRS living expenses schedules (both nationally and regionally used), I come up with the following:
Anticipated monthly gross: $10,000
Fed Tax: $1890.63 (straight forward for sake of example)
State Tax: $545.92 (I will need to relocate for a new job)
Health & Dental $550.00 (family of 4 paycheck deduction)
Gross Net: $7,013.45
Expenses: (as allowed under the IRS schedule)
Food: $742 (family of 4)
HSKP Supplies: $74
App. Services: $244 (family of 4)
Personal Care: $65
Misc.: $235
Healthcare (out of pocket): $240 (family of 4)
Housing & Utilities: $2556 (picked a city I might find a job)
Transportation: $244 (own my car so this is for gas, ins, maint.)
Expenses: $4,400.00
DMI: $2,613.45
If you took into account just my $115k in debt (minus the equity line on the house) they could take $1916.67 for 60 months and pay this off. The advantage would be that I wouldn't have to pay the interest as well.
If you took into account my addidtional $60k on the home equity line the total debt would be $175,000. With the $2613.45 times 60 months, I would be able to repay $156,807.
Does this all make sense?
Questions:
1) My wife will go back to work when we move. If we are in a community property state but she is not filing (the debt is ALL under my name), will they include her income as well?
2) I could not find anything on the IRS site regarding day care for my two small children. Anyone know what that allocation would be? I have paid $2500 in the past monthly for 2 children.
I think that's it for now....the other option I was told was to wait a year and try to file for Ch. 7 and I may be accepted at that point as the debt will have been more aged by then. Also, I am current on all payments for everything but will most likley need to stop paying mortgage in May. And finally, the business that I own has not produced a dime in profit since last year and is up for sale. So, I have had no income for the last 9+ months. Just living off of savings.
Thanks for everyone's input.
Originally went to a lawyer to discuss a Chapter 7 and he concluded that I did not qualify and that the US Trustee would balk at my filing. the reason given, too much short term debt compilation and possible abuse of available credit. I've posted a few questions on the Chapter 7 forum and received feedback that maybe I should look over here for an alternative. Here is all of the data:
Creditor #1 $70k (line of credit and 1 credit card)
Creditor #2 $45k (same as above)
The above amounts were used to open and operate a business when I lost my job last summer. I also have a mortgage and equity line of credit. I find out today from my real estate agent if I can sell my home for what I owe. If not, the 2nd may need to be rolled into this. I will need to relocate out of the state in order to find appropriate work.
According to the IRS living expenses schedules (both nationally and regionally used), I come up with the following:
Anticipated monthly gross: $10,000
Fed Tax: $1890.63 (straight forward for sake of example)
State Tax: $545.92 (I will need to relocate for a new job)
Health & Dental $550.00 (family of 4 paycheck deduction)
Gross Net: $7,013.45
Expenses: (as allowed under the IRS schedule)
Food: $742 (family of 4)
HSKP Supplies: $74
App. Services: $244 (family of 4)
Personal Care: $65
Misc.: $235
Healthcare (out of pocket): $240 (family of 4)
Housing & Utilities: $2556 (picked a city I might find a job)
Transportation: $244 (own my car so this is for gas, ins, maint.)
Expenses: $4,400.00
DMI: $2,613.45
If you took into account just my $115k in debt (minus the equity line on the house) they could take $1916.67 for 60 months and pay this off. The advantage would be that I wouldn't have to pay the interest as well.
If you took into account my addidtional $60k on the home equity line the total debt would be $175,000. With the $2613.45 times 60 months, I would be able to repay $156,807.
Does this all make sense?
Questions:
1) My wife will go back to work when we move. If we are in a community property state but she is not filing (the debt is ALL under my name), will they include her income as well?
2) I could not find anything on the IRS site regarding day care for my two small children. Anyone know what that allocation would be? I have paid $2500 in the past monthly for 2 children.
I think that's it for now....the other option I was told was to wait a year and try to file for Ch. 7 and I may be accepted at that point as the debt will have been more aged by then. Also, I am current on all payments for everything but will most likley need to stop paying mortgage in May. And finally, the business that I own has not produced a dime in profit since last year and is up for sale. So, I have had no income for the last 9+ months. Just living off of savings.
Thanks for everyone's input.
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