Tried chapter 7 now going to a 13

[KeyserSoze]

Hello all, I have been reading this site since May and I have got some great information. Now I'm looking for some advice. My wife and I file chapter 7 in may and at the advice of our attorney we have had our case dismissed. We over on income and the trustee filed a presumption of abuse. Our attorney had purposely fudged some of our numbers hoping to pass the smell test. Well it didn't pass. We filed to have our case dismissed without having a 180 wait to re-file and it was granted. Our attorney has told us that now we need to up our expenses to lower our monthly payments. My question is what is the best way to handle this and what kind of expenses are allowed and which ones raise red flags? I am trying to put everything together by he weekend and any advice is appreciated.

[momofthree]

Do you already have 2 car payments? Buying new cars with payments close to the IRS standard ($496/mo) is an easy way to increase expenses while decreasing the chance of needing major auto repairs over the next 5 years.

Other than that, you can view the IRS standards for living expenses here: http://www.justice.gov/ust/eo/bapcpa...anstesting.htm

Decreasing deductibles on insurance is a good idea. It raises your premium payments, but again, protects you over the next 5 years in case you need to file a claim. If you don't have disability insurance, life insurance, etc. then sign up now.

[my2girls]

KeyserSoze,

If you don't mind my asking how much were you over on your means test? Did your attorney inflate the numbers beyond the allowed deductions? We are in the same boat. We haven't filed and are trying to avoid a 13. I know the laws may be different in CA than in MI. Good luck to you. (PS..don't forget daycare that's always a good one that truly costs $$ if you use it.)

[KeyserSoze]

We were over about $1500. Currently we have 2 car payments and they are about $500 per month. One of the cars will be paid off in 8 months ago. I hav

[KeyserSoze]

Continued, and is college tuition for our 18 & 22 kids allowed

[momofthree]

College tuition for adult children is not considered a necessary living expense. It will not be allowed. In fact, there is a district in SoCal that fights allowing even basic living expenses for adult children living with you (I want to say Riverside area).

I'd suggest buying a new car and replacing the one that will be paid off in 8 months. That money will just be given to your unsecured creditors, may as well buy a new car that you know will last you all 5 years. Don't worry about the rate, it can be decreased once you file--though I believe it will need to be paid thru the plan.