Expenses are not enough

[callies]

Our attourney called last evening stating we were over the means by 300, but our budget leaves us roughly 659 a month. She stated that they have to go with the larger of the two numbers in a 13. She also told us we should go out and buy a reasonable car around 300-350 payment, raise our term life up, cut out overtime as much as possible.

My question...my son will be driving next month. Will the insurance we get him be able to be used in our budget? It will be around 120. With that (120), the car payment (350), term life ins (32) and I'm sure our auto will go up if we purchase another car (30)-that should put us at $532.00 additional expenses a month. Leaving 127. Can we use the car payment or does that not count (I'm so confused, just when I think I know...well I don't argh) Is there anything else we can do??? Should we raise our ins on the older vehicle we have now to full coverage? Also, she advised me that if we do go a 13 that I need to have more taken out for my 401K, she stated that we can not use that in a 7.

I really do not want to be locked into a 13. She said we are truely a boardline case. I have not seen the petition to know exactly what they listed in our budget, but I'm hoping and praying they missed something.

Please advise.

Thanks

[SMinGA]

You should probably get clarification from your attorney. Was this advise to avoid a 13, or advise to limit how much you would have to pay to unsecured creditors in a 13? Here is what I'm guessing they meant:

Instead of paying $659 per month x 60 on mostly unsecured debt with an old/unreliable vehicle, adjust insurance (or other minor expenses) and take on a reliable & reasonable vehicle loan. The vehicle loan goes into the plan, so you'd probably end up with a plan payment of $400-500 (depending on the exact bottom line of your NDI) that INCLUDES the new vehicle payment and pays very little to unsecured.