Newbie- Couple of Questions

[mikemc411]

First Off--- Thanks to everyone that responds , this forum is awesome...
I've spent around 10hours lurking around out of the last 24...

I have a few questions that I haven't found answers to.


Background....

Laid off Oct 2008, Re-employed Feb 2009 had to re-located.
Tried short selling house, several deals fell through, GMAC got tired of waiting and forclosed June 2009.

Previous Chapter 7, Discharged Sept 2003 (had been laid off May 2002)

We are a family of 5, my 6 month income is just over KY median income by a $1000 or so, due to a bonus I received THIS month...


I've completed the NOLO worksheet and we show negative DMI (about -$600)

I have an 2007 expedition financed with a credit union, along with a 5k balance Visa... Both are current.

I have outstanding unsecured debt that hasn't been paid in 10 months...
The forclosure balance is still looming, the wife has vehicle repo balanaces looming from her previous relationship..

I feel a lawsuit is pending soon,

My questions are ......

1) should I try to wait till my bonus drops off my 6month income, then file Ch13, so I will be below the median income (36 month plan -vs- 60) ? If so should Include the expedition in the plan, (cram down balance 29k to 20k),

2) Should I just file C13 now, pay the expedtion "out of plan", and convert to C7 Sept 2011 ?(and re-affirm Expedition) Since I will probably still have negative DMI ... Is it possible to just file C13 while waiting to be able to file C7 again? Do I have to have some sort of "life event" to convert?

3) I picked up a part subcontract work doing "home occupancy inspections" , the pay is crap, according to my tax return I lost money on this due to my mileage deduction, part of my cell phone bill etc... How do I calculate this income since it looks like I'm making money but when I deduct mileage I'm not...(just basically selling miles on my beater car)

4) If I file C13 and include the 2007 expedition in the plan, then later convert, what happens? can I re-affirm or keep it somehow other than coming up with 20k, I will want to keep the expedition somehow since I can't get financing to get something decent...


Thanks... Hope all this makes sense....

I thought I would be able to avoid BK, but I spent some time on the phone with HFC yesterday and its evident that BK is unavoidable... (short of living in a box so I can send them 900 a month)

[BKchapter13]

I would choose number 2, file now and when your circumstances change file a 7 only because you will be protected under the chapter 13, however, the re-affirmation of the vehicle is something I would know about seeing chapter 7 is a liquidation of all assets. you may want to speak to a good bk attny and ask about the vehicle. I am from michigan and this is what I know about michigan law your state may be all together different. But bk protection is always worth the effort to look into. Good luck

[momofthree]

If you received the bonus THIS month, then if you file by the end of THIS month, the bonus won't count yet. The 6-month look back ends with the month prior to the month of filing. So they would go off paystubs ending in Feb if you file in Mar.

Just an FYI.

[mikemc411]

If you received the bonus THIS month, then if you file by the end of THIS month, the bonus won't count yet. The 6-month look back ends with the month prior to the month of filing. So they would go off paystubs ending in Feb if you file in Mar.

Just an FYI.

Sweet... Loooks like I need to get busy.....

[SMinGA]

I don't believe you'll be able to file a 13 now & convert to ch. 7 later. May need to dismiss and then refile. A conversion goes by the original file date, and since you're not eligible for ch. 7 now your 13 won't be eligible for conversion.