surprised by attorneys advice

[pcn]

We had to look hard to find an atty willing to fight for a ch7 for us; most said 13 because we are over the median. But, from what I have seen here, if we try a 7 and get rejected, the most likely possibility is that we would have to become a 13. So we are trying for the best outcome, realizing that we may have to settle for 2nd best (13). I'd be afraid in the 13 that when the last of your income changes become effective that it is enough of a percentage change in your filing income that the court then wants to modify your payment plan.

[jdcat]

We are under the median but we have a really small mortgage ($688) compared to some of the other members on this forum so I think that may be a contributing factor for us being a possible 13. We absorb the rest of our income with other expenses and come out negative but when the first car is paid off in June that will cover what we are negative on and bring us even. Then we have the three other loans that will become available making us positive albeit not for months to come.

I can't see a trustee dismissing us because our current situation is very tight but neither can I see a trustee ignoring the payoff of these other loans. I'm waiting for my kids to finish up x-mas break and get back to school then I'm hitting the pavement to speak to some more attorneys and try and get a better idea of what is up with our situation.

If we do have to do a 13 I think you're right about the plan being modified as as our income changes become affective. And that is something I want to discuss with these attorneys.

The really crappy part is when/if I go back to work I risk having all of my income going into the 13. Before I left work and before we stopped paying our cc's all of my income was going to paying our cc's every month anyway though. At least in a 13 we'd be "making a dent" in our debt verses giving all of my income to the cc's and not being able to get out from under their thumb when I was working. In this context being in a 13 would actually be step forward and not a constant battle against being pulled in a backward direction. I still would prefer a 7 though!

I can say without reservation that we will never go the credit route again. I will never subject our sanity, emotional wellbeing, and financial stability to someone/thing that has the ability to garnish wages, place liens on homes, and haunt you for years to come. It's like literally giving your freedom away. Never never again.

[JustFileSuit]

Health Insurance Issue

Don't be surprised if the Trustee will object to confirmation of a 13 in the above circumstances if the Debtors do not have health insurance, either their own or provided by the State through medicaid.

The Trustee cannot be looking towards possible "future income" as you suggest. The Future is not certain. You might not get re-hired. You might get sick. You might get in a vehicle collision. too many uncertainties. They work with what they can see, and that is what is in front of them.

Remember, in a 7, you can always dump one of the autos if the payments are swamping you. Or make a deal with the lender to stretch it out, and file a Motion with the Court to accept the modified schedule. I am always puzzled why Motions to modify contracts,with consent of course (the lender does not really want that used auto back; they would rather have the cash) are not more widely used.

[JustFileSuit]

[QUOTE=jdcat;363399]

I

can say without reservation that we will never go the credit route again. I will never subject our sanity, emotional wellbeing, and financial stability to someone/thing that has the ability to garnish wages, place liens on homes, and haunt you for years to come. It's like literally giving your freedom away. Never never again.

Best single decision you will ever make in your life (in the money dept.). Stay away from the credit enslavers. (Or sue them, which is what I do).

[jdcat]

I hope your right about a trustee not looking past what they can see JustFileSuit! If that is the case then I think we'll be ok.

I can't wait to get this over with! The not knowing how this will turn out is a killer!

[moneyblues]

Irprn makes some very good points. I am facing BK right now and after everything I have read, I would only file a 7. I would not even consider a 13 if I have nothing to lose and even still I would weigh that out to see if I really wanted whatever I was trying to keep and most times what your holding on to amounts to sentimental value and nothing more. (I have noticed this with a few of my friends when they hold onto broke down houses and junk cars) I would rather sell it or better yet, give it to someone who really needs it and put life into it than for it to break apart from none use or try and make a few dollars only to waste it in other dumb stuff. (Oh, I digressed) Go for the 7. The difference of time that it stays on your cr is 36 months and the difference in discharge so you can get on with your life and forget this nightmare can be as wide as 6mths for C7 to 3-5 years for a C13. It sounds like your attorney wants a payday that keeps on giving, but I'm no expert by far. I'm still scared to walk into the attorney office. lol I will get it done this week and hopefully I can pay over time because I am seriously broke too. I have to find some humor in this craziness so I don't go crazy, literally. I'm still a newbie but I hope this was helpful.