If we can't file 7, what about 13?

[coolmom04]

I'm trying to learn more about ch13, but I am still so confused. We should be able to file ch7 according to the schedules I & J and the means test, but I want to make sure I have all the bases covered and am fully prepared either way.

What factors would make us ineligible for ch13??

What things would we have to sell or liquidate to pay to the creditors? or whatever? We own a home that we moved into less than a year ago. We got a 100% finance mortgage and we are current on payments. We owe $216K and house value is $250K.

We own a minivan that is worth maybe $18K and owe $16K on it.

We own an older car outright that may be worth 3K max! Probably not even worth that.

DH has some company stock, but not a whole lot. He has an IRA that is just sitting there with probably $5K in it.

That's about it!

I am going to stop paying the bigger credit cards with the higher minimum payments and go ahead and pay off the two smaller ones (one that I used last month and balance is $500 and another that has a balance of only $200).

When I stop paying the larger credit cards, the interest rates are going to jump sky high. We have about $50K in cc debt, but have very low interest rates. DH is worried that if we stop paying the ccs and then can't file either 7 or 13, we are screwed with outrageously high interest rates and will have to deal with the collectors forever.

This is all so soooooo stressful. We're meeting with an attorney on 01/12, but I love to learn more before we go so I don't feel over my head when we meet with her.

[StartingOver08]

Have you looked at your exemptions yet for your district? Look at www.legalconsumer.com and find your district's exemptions.

Also, where are you getting the values of your assets? It seems unlikely that your house value has increased over the past year. In order to get an accurate value, contact an experienced real estate agent and get a CMA on a quick sale value (sale in 30 days). You may be surprized at the value of your home. Same with your vehicles. Find out the valuation model the Trustee will allow in your district (the BK attorney will know). Some require you to use NADA Retail (like our district), others use KBB etc. Don't put down too high a value - it can hurt you.

[coolmom04]

Have you looked at your exemptions yet for your district? Look at www.legalconsumer.com and find your district's exemptions.

Also, where are you getting the values of your assets? It seems unlikely that your house value has increased over the past year. In order to get an accurate value, contact an experienced real estate agent and get a CMA on a quick sale value (sale in 30 days). You may be surprized at the value of your home. Same with your vehicles. Find out the valuation model the Trustee will allow in your district (the BK attorney will know). Some require you to use NADA Retail (like our district), others use KBB etc. Don't put down too high a value - it can hurt you.

Thank you for that link! I hadn't looked directly at what our district exemptions were. That helps a LOT!

[fooked]

don't automatically think you won't qualify for a 7... thanks to this forum, and the link above, I found out I do qualify... and was filed two weeks ago

[coolmom04]

don't automatically think you won't qualify for a 7... thanks to this forum, and the link above, I found out I do qualify... and was filed two weeks ago

Thank you I really think we do qualify, but I am trying to make sure I am prepared to hear, "Sorry, you must file ch13" kwim?

Congrats on filing! I can't believe it took me so long to convince my husband we had no other choice!

[JEM]

Thank you I really think we do qualify, but I am trying to make sure I am prepared to hear, "Sorry, you must file ch13" kwim?

Congrats on filing! I can't believe it took me so long to convince my husband we had no other choice!

You sound like me...I'm going over "worst case scenarios" daily in my head.....all of the "what if's". I'm probably driving myself crazier than I need to be. And surely my husband as well.

[coolmom04]

You sound like me...I'm going over "worst case scenarios" daily in my head.....all of the "what if's". I'm probably driving myself crazier than I need to be. And surely my husband as well.

The anxiety is unbelievable isn't it?

[JEM]

The anxiety is unbelievable isn't it?

It is. I set aside a part of the day or evening where I read here, and learn as much as I can. I want to be informed even before we start interviewing lawyers (which wont be till after the first of the year I'm sure). I also spend a little time "organizing" paperwork. Printing out bank statements, CC statements, and gathering paperwork that I'm sure we'll need. I have them paperclipped in various groups.

Yet, I'm STILL anxious. All.the.time.

[klandsb]

Read all the stickies and search on threads that might pertain to your situation.
I am over the median income and filed Chapter 13. Honestly you cant just do the test online and say I am a 7 or I am a 13 unless you plan to file pro se... Go to a few and then a few more attorneys and get the feeling as too what they all say.. With a free consultation they are just giving you a quick overview and making there decision. I mean honestly until u get to the nitty ,gritty of your income vs expenses u wont know if you are 7 or 13 if your over median. If your under median then yes, as long as expenses jive you are a 7... I am sure some of the experts on here will chime in...Take there advise

[coolmom04]

Thank you. I keep reading and reading. My head is spinning :-)

I think we are probably going to end up ch13. The equity in our home may be over by at least 5K of what my state allows.. and we have two vehicles.. one of which I can't figure out through edmunds, KBB, or NADA what the actual value is b/c it appears that two will let you plug in the vehicles condition and NADA wouldn't.. so the range is anywhere from 2K-5K and my state allows 3,500K excemption. Plus, we own a van that we are current on and owe about $16, but it looks like it might be worth 15-16K...

so stressfull..

So, if our MDI is only $99, does that mean we'd only be required to pay $99/month for 60 months and then we'd be done? Or... am I missing something?

[klandsb]

I believe there is a thread from HHM on the amount of payback ...
Somewhere on here I read there is a threshold of $ 108 ... I can only go by what I have experienced in the last 6 mths. I figured out my DMI online and came up with a low amount compared to what my attorney figured out. There are somethings that I still dont understand but only an experienced attorney can give you the true numbers. Originally my attorney figured a pmt of $1200 w/secured being paid in the plan at 17% payback to creditors which was what I thought was reasonable. Then it got changed to $ 1600 mth with 71% payback.. I fell over when I opened the letter stating my wages were attached for the $ 1600 a mth. I made calls to attorney & got the run around everytime about this is what your income is and blah,blah & more or less sorry about your luck and we will see what we can do ect. My 341 was this past Monday and after having a heated argument in the hall with my attorney face to face and letting him know I was not happy and felt he was not looking out for my best interest we went into the 341 and got my pmt lowered by $240 a mth. Had I not been agressive I believe nothing would have changed. Its stressful enough without having to deal with all this other mess.
I guess my main point would be every case is different. Every lawyer is different . You cant base your plan on someone elses story. Only you and your lawyer can figure out the particulars for your situation. Hope that helps a little...

[LALADY]

You have a month to research. I purchased the online downloadable versions of Nolo's Chapter 13 and Chapter 7 books. I read each and every word of each book, including all the forms. As I went along, I highlighted everything that I felt affected me and/or I had questions about. I filled out the forms to the best of my ability to see where I thought I would fall. I then transferred all unanswered questions to a piece of paper that I discussed with the attorney after I decided to hire him. Those Nolo books are pretty darn informative, and the online downloadable versions don't cost that much. I strongly recommend purchasing them if you can afford to do so. If you go to the library, make sure you check out only books that are current on the law since not too long ago the laws were significantly changed.

[coolmom04]

You have a month to research. I purchased the online downloadable versions of Nolo's Chapter 13 and Chapter 7 books. I read each and every word of each book, including all the forms. As I went along, I highlighted everything that I felt affected me and/or I had questions about. I filled out the forms to the best of my ability to see where I thought I would fall. I then transferred all unanswered questions to a piece of paper that I discussed with the attorney after I decided to hire him. Those Nolo books are pretty darn informative, and the online downloadable versions don't cost that much. I strongly recommend purchasing them if you can afford to do so. If you go to the library, make sure you check out only books that are current on the law since not too long ago the laws were significantly changed.

Thank you for that suggestion. I'm going to download it right now!