Thinking of Chap 13..couple of Questions

[lrprn]

I think my income at $71,500 prevents me from a Chap7. Am I wrong?

Yes, you could be wrong. Ch 7 is not based on solely on income - it's based on how much disposable income (if any) you show on the required Means Test and Schedules after putting in all your income for the past six months, secured asset values, living expenses, and what you can protect with your state's bk exemptions. (Grossly simplified, but you get the idea )

We've had several members here over the last 3-4 years with incomes over $100K who have been able to file Ch 7 in unique circumstances. No matter how much you make, as long as you show less than $160 or so disposable income every month on the Means Test and also on Schedule I minus J, then it is possible that you may be able to file Ch 7.

If you haven't set up your free or low cost initial consultations with at least 3-4 experienced bk lawyers in your area, then it's time to do that. Keep interviewing experienced bk lawyers until you find one who is willing to fight for you, whether you file Ch 13 or are able to file Ch 7. I can pretty much promise you that it won't be the lawyer with the lowest fees, but may not be the one with the highest fees either. After you interview 3 or 4 bk lawyers, you will start to see a pattern and also get a sense of who you think will work best with you. It also helps if you do a ton of research ahead of time so you understand how both bankruptcy chapters work and the advantages and disadvantages of each.

Finding a great lawyer is key no matter which chapter you end up filing. If you are able to file Ch 7, your case will be looked at closely because of your income. That makes finding an experienced bk lawyer who knows the bk law and prior case law in and out, who is very familiar with the trustees' and court's habits and customs, and files both Ch 7s and 13s frequently even more important.

Finding good legal representation is everything, especially in Ch 13, so don't skimp here. Do your homework and interview, interview, interview! Good luck and keep us posted on how the journey progresses.

[Dee]

I think my income at $71,500 prevents me from a Chap7

Am I wrong?

Run your numbers on the means test and schedule I & J. We are at $75,000 in Florida and our attorney says Ch 7, no problem. We are filing Friday. Good luck!