Please help w/ question about bankruptcy

[CindyLou]

just to clarify: is your total unsecured debt 49,000 or does that include your car loan too?

[rrockinggramma]

If you file a chapter 7, then you could do a 722 redemption on your vehicle which would lower your payment and finance on the FMV of the vehicle. The interest rate is high however but that is an option on the car. I would look around for another place, less expensive if you can (not familiar with your area) get that in place, then walk away from the lease. File the chapter 7 and then discharge everything you can in that and redeem the car with a 722. As to the back taxes and the student loans, the IRS will take payment arrangements as low as 25.00 a month and also since you are in school now, the student loans should be in deferrment. Then I would finish up the schooling, get your life situated with your kids etc, and then possibly after all done with school, file a chapter 13 (couple years in between chapter 7 and then filing for chapter 13) and then include the student loans and the IRS and anything else built up inbetween. That is what I would do . . .

[Iluvres]

Hello everyone...BTW u guys are awesome source of INFO!!!
OK My income right now for the last 8 months is about 44k.

My debt of 49k does include my car (20k is what they say I have to pay on the car....even thought the book value is 12k...and I been paying on it for 2.5 yrs already) So the 49k is car and loans and credit cards and old bills.

RRockingramm:
What is FMV?
Also...I would like to keep my truck but can't afford the $430 payment anymore and the thought of giving them 20k for a truck worth 12k makes me sick.
So are you saying that I can do the 722 and keep my same truck???

I do like your idea of doing the ch. 7 now and then when I am done with school starting the ch 13 so i can work on those loans.

When my husband and I went thru the divorce I asked the judge to have my husband be responsible for 50% of the student loans and that was granted. Do you think there is a way I can have the loans actually split 50% by Sallie mae so that he can have his and I can have mine and it won't seem so bad on my files/report????
I think I asked them before and they said they can't divide the loan.

I will call IRS and set up a monthly payment on the IRS deal. I can handle $25 a month.

I have a meeting with a bankruptcy lawyer on friday at 11am. I can't wait.
I also been thinking about buying the NOLO book. Kinda want to try and go pro se but afraid.

OK. you guys made me feel a lil better tonight.

THANKS for responding!!!

[CindyLou]

Hi,
In regards to the IRS payment. It will actually be whatever you owe + any interest and penalties divided by 36 months. You have to be able to pay off your balance in the 36 months for them to accept your plan, so in your case it would be approx. 100/ per month (I feel your pain...I'm going to owe big time this year!!!) Here is the link for Installment Agreement form from the IRS website.

http://www.irs.gov/pub/irs-pdf/f9465.pdf

Hopefully this is a start for you to take a deep breath get some things rearranged. Have you checked with your employer to see if there is some employee assistance available? I am also a nurse. I know how stressful our jobs can be. And then to have to also deal with life and finanes it is so hard. You will get through this!! The arrangement with your ex-husband does not seem very fair and I really hope that you can get some legal assistance to help you get a more fair arrangement so that you can get some financial reflief. I am so happy that you found this board for advice and venting. Although we aren't attorney's and may not have the best advice maybe we can bounce some ideas back and forth that may help.
Keep your head up! Oh, btw...what state are you in?....oops, just noticed...connecticut

[Iluvres]

HI, Thank you for the link to the IRS forms. I appreciate it all. I meet with lawyer tomorrow. SO will update tomorrow on what he advises.
I hope I can get some positive out of all this!!!
TIA

[Boscoe]

FMV- fair market value.

Car equity - FMV less what you owe on it.

Use Edmunds.com rather than Kelly Blue book, as Edmund's values are lower, which is what you want so you can "exempt" as much of the vehicle's equity as you can and that your state allows.