New Here- Help figuring out payback

[mlevesque308]

Hi All,

I'm recently divorced and meeting with a bk attorney next week. How I landed here................well my ex and I should have divorced years ago, but for whatever reason did not. Four years ago he lost his job, so that added to the stress, being already depressed this just added to the debt. I can't tell you where the mony went, I'd like to sit here and say I have nice things to show for it.........A large collection of TUMS maybe, because that's what I've been living on. So here is where I need help, I need to have someone give me a ballpark range of what my payment plan would be.

State: Rhode Island
Debt: $135K in unsecured cc/loan

Net Monthly Income: $5608.00

Mortgage: I've managed to stay on top of- Monthly payment is $1435.73
RE Taxes: $305.00 per month
HOA Fee: $275.00 per month
Alimony: $1000.00- per month for 48 months, just started 1/1/13
Health Insurance: $285 per month
Then the rest would be gas, food, utilities, etc........

Car: 2008 Ford paid for - Kelly BB says its worth $4800

Just trying to get an idea of what my exposure would be. I'm currently in one of those debt settlement programs and paying around $1000, which has been tight, but it is what it is.

Also, another quick question. Not counted in my monthly income. I usually receive mileage checks from my employer, when not reporting to my office (which is a 55 mile each way trip) for me, I often go on sales calls, so I drive a lot. Would the monies received from mileage reimbursement be counted as income?

Any and all advise would be helpful. I've just read some posts and saw that people only having $60k in unsecured debt paying over $1000 per month, so it's been scary. I guess one of the moderators commented and said that there might be different variables to that, like if they are paying there mortgages and cars inside the plan, which I would not be doing.

Any and all advice would be helpful. Honestly, I called one lawyer about a year ago and our 30-minute phone call didn't go well, you might think I told him I was responsible for a major attack on the US the way I was treated. I was also given the recommendation by one attorney I called who specializes in CH 7 for 25 years, to call the attorney I'm meeting with who has been just a BK attorney for 24 years in the RI, his practice handles about 65% of CH13, so I imagine he has the knowledge and the insight to help me come up with a fair pay back plan. sorry to ramble......I do this when I'm nervous........but words my attorney told me was, look relax Tom Jefferson, Abe Lincoln and Walt Disney have all been where you are, and they came out of it just fine, and with my help so will you.

Thanks again in advance, for any insight you can provide me.

[andy158]

I'll chime in on the mileage reimbursement. My wife travels extensively for her job and recieves monthly mileage checks. This is not income. This is why it is called reimbursement. It is money for the use of your vehicle to cover fuel, wear and tear, tolls, parking, any expense incured while using your vehicle for buisness purposes. The federal standard mileage rate is 55.5 cents/mile. My wife is paid 50 cents/mile and we calculate a mileage correction when we do our taxes.

You do not recieve a 1099 for the mileage checks do you?

It should be a separate check with no taxes or other deductions taken.

[mlevesque308]

No. I do not receive 1099 for mileage. Good to know. I thought so, but I didn't know if it was something the trustee would object to. I see you're well into the plan, is it doable?

[Floridagail]

We had to count reimbursement Hubby receives as income on his chptr 7 recently. We tried to argue it , but attorney said it counted.
His ck is reimbursement for gas, parking fees, milage on his business truck.
Have you done the online means test. It was quite helpful in our planning. Also we were advised to have a car payment so we got rid of our paid off truck. It enabled Hubby to file chptr 7 rather than 13.

[Floridagail]

Forgot to say , welcome to the forum, Lots of good people on here to answer your questions so ask away.

[mlevesque308]

Thanks. I make to much to qualify for ch7 is what my attorney told me, we did a 30-min intake call prior to scheduling a meeting. I'm not sure if there are different exemptions in 7 than 13 regarding mileage. Very new to this.

[Floridagail]

Start by seeing several attorneys , tell them your intention is to file 7, If at all possible. Do you have life insurance, car payment, with your house payment and spousal support could put you in 7. My hubby was told he was 13, but he was able to go 7.

[mlevesque308]

Thanks for the advice, I've called several an had long conversations with 3, not including the one I'm meeting with, one has specialized in ch 7 in the state for 25 years and laughed me off the phone, problem I make $95k+ and income in RI is like $47k I think.

No car payment and $25 term life policy.

[Floridagail]

Here is means test calculator http://www.legalconsumer.com/bankruptcy/means-test/
I found it very easy to use. It will give you idea about what your disposable income will be. We planned ahead on ours before filing for quite awhile. Definately stop paying any debt plan if you intend to file bankruptcy. I did the debt plan thing too. It was a waste of time in my case.

[keepsmiling]

Hi and welcome.
Many people find buying a car pre-filing is a good way to either get into a 7 OR if in a 13, to be assured of a reliable vehicle throughout the 5 years and lower payments to unsecured. Keep reading

[mlevesque308]

I don't think I'd get approved for financing and wouldn't that be frowned upon, if you file like a month after buying?

[keepsmiling]

It's generally considered good planning.
A car is considered a necessity, especially in your business. What would you do if you were in the 13 and then needed a car? It would be much harder then to get the loan.
Keep reading, you will see this is a fairly common practice.
Some things in BK are kinda bass ackward. Keep reading I can't emphasize that enough. The collective wisdom here is astounding.

[mlevesque308]

Is tha something I should ask my attorney? I really don't want to screw anything up. Seeing as though this is my last resort.

[Floridagail]

If you want to ask him, I would say, I need a new car mine is not in good shape before filing. Definately take advantage of the car allowance. In middle of plan your car could die.

[mlevesque308]

Ok. Great. I will.