Where to start? Bk7?

[Jonappleseed]

My question involves bankruptcy in the state of: Indiana.
I filed chapter 7 as a single man in 4/2001, discharged 7/2001.
My now late wife and I filed 13 in 4/2006, discharged 4/2009 I believe.
Remarried now and current wife's 13 (from ex husband) was discharged in 4/2016.

Now we are in a predicament. Medical bills, cc debt, 1st & 2nd mortgage, 2 c a r payments. I lost my job in january and wife lost job late in june. Both in 2016. I receive 1500/month disability while we both continue to look for work. So expenses definitely are higher than income currently.

1st mortgage 420/month
2nd mortgage 198/month
1st car payment 502/month (will be paid off october, 2016) kbb value $18k
2nd car payment 285/month. Owe $14k, kbb value $14k
1403 total in these NOT including medical bills, utilities, cc debt, etc

Would we qualify for chapter 7? Im okay with getting rid of 2nd car payment if this would help.
I dont believe that we would have the funds to attempt a chapter 13 repayment plan currently. I have some decent job interviews and possibilty for work soon. I believe we should act SOONER THAN LATER.

Comments or suggestions please?

Thank you in advance.

John

[LadyInTheRed]

Your wife cannot file a Chap 7 until 6 years after the filing date of her Chap 13.

Assuming your annual household income based on the previous 6 months before you file is less than median income in your state or you otherwise pass the means test, you could file your own Chap 7 to get rid of your debt. You can find the median income for your state and household size at https://www.justice.gov/ust/eo/bapcp...come_table.htm

Getting rid of the 2nd car payment will help your cash flow, but it won't help your eligibility for a Chap 7 discharge. In fact, if you are over median income and are close on the means test, getting rid of that payment could work against you.

The almost paid off $18K car will be an issue if it is in your name and you file alone. You may have to buy the non-exempt portion of your equity from the trustee. You can find info on Indiana exemptions here: http://www.nolo.com/legal-encycloped...xemptions.html

If you sold the $18K car and used the money to pay off the $14K car, could you avoid BK?

[justbroke]

I was going to write something, but LadyInTheRed has you covered.