Will I be able to file Chapter 7????

[deadbrokeinnc]

I have read that it is difficult to file chapter 7. If you have any experience with the "test" to qualify can you review my info and let me know what you think. I live in NC.
Salary- 80k
Spouses Salary- 40k
I am looking to file as an individual since the majority of the cc debt is in my name only.
DEBTS-
Amex- 27k
BOA- 24k
Other cards- 15k
Total cc debt- approx 67k
Mortgage monthly- 2700
Car pymt- 690 month
DayCare- 1300 month
Utilties- 480 month

[SwimminUpStream]

It is a Bummer, but they still take your spouses income into consideration...Stinks

[keepmine]

Is your income above or below the median for your state. You also need to fill out schedules I and J to arrive at your disposable income.

[deadbrokeinnc]

Hi keepmine,

I called an attorney today to test the water about chapter 7. The paralegal said that the median income for a family of 4 in NC is 61,000k and that because I am well above that it is no hope. Any suggestions...
What is the I and J schedules? with my bills I dont feel like I have any disposble income.

[michellem]

deadbrokeinnc, there's no way for you to file Chapter 7 with that amount of household income. However, you can still file for Chapter 13! I would check out the FAQ's in the Chapter 13 section to get a general feel for how they work.

I'd also suggest credit counseling. You have a lot of debt but it looks like your household income is pretty decent and if you expect it to stay in that range, a credit counselor could set up a payment plan for you that would allow you to start paying down your debt without filing for bankruptcy. I would definitely start with counseling before deciding on the Chapter 13.

What part of NC are you in? I'm in North Meck, almost near Iredell. I found a reputable counselor on the website for our districts bankruptcy court.

Check here for your district: http://www.uscourts.gov/bankruptcyco...istrators.html

The link for the Western District on the website is incorrect. If you're in the Western District, go here: http://www.ncwb.uscourts.gov/

[monkatom]

there's no way for you to file Chapter 7 with that amount of household income

I am not sure if that is correct as My household income was about 119K and we did a chp 7 as our secured debt was very high. without doing a means test as well as a schedule I and J there is no way to tell if you qualify for a chp 7.

[keepmine]

The thing is, you likely have plenty of disposable income since, the money you ould be paying to creditors on debts that would be discharged in a Chapter 7 can be used to fund a 13. I and J are, the income and expense schedules.
A $690/month car payment is pretty steep. You have been living beyond your means for a longtime. First thing you need to do is sit down and draw up a budget that is heavy on living below your means.
From there, you can weigh the pros and cons of a Chapter 13 bk vs digging out on your on.

[keepmine]

I'd agree with Monkatom. With high secured debt payments, you may have a shot at a 7. Bypass the para and sit down and speak with a lawyer.

[almost]

You may be able to do Chapter 7. Look at you inome vers you expenses. If it looks like that you have no extra income to pay your debts after expenses you may be able to file. Do some research on this site. You have to do the extented means test. Use this link to a means test website.

http://www.legalconsumer.com/bankruptcy/bankruptcy-means-test

[deadbrokeinnc]

Thanks for the everybody for the information.
Almost- I went to the website and did the test it says that I would pass. Since I am living well above my means and my secured debts are so high.
Keepmine- Have you heard of paying for the means test. I called a local attorney and he said he would do the means test for $250.00 . Dang I am already broke... He said that it takes a good 2 hours to complete this and his firm charges for the time.
michelle- thanks for the link I will look it up!

[FreshLikeADaisy]

Deadbroke, just to second what others have said, a 7 is not impossible at all, just harder. You will have a few more hoops to jump through, but being over the median does not preclude you from filing a 7 when your expenses outweigh your income.

I agree with Keepmine; ditch the paralegal and speak to an atty -- preferably several. Initial bk consults are usually free, so don't stop with just one. And NO, don't pay $250 to do the means test! Not yet! If you file, your atty charges you for it as part of his retainer ANYWAY, so I don't see it as a wise investment. Sure he should get paid for his time, but would he subtract that $250 from his retainer if you filed through his office?

Another thing I strongly recommend is that you get one of the books on Ch7 (the link to the Nolo Press book is in my sig; I like that one but there are other good ones too) and get educated on the bk process so that you can make good decisions, no matter what atty you get. I think that, being over the median, you will definitely want an atty in your case, but at least take some time to look it all over so that you can ask the right questions and get the right one.

Personally, if you study a little bit, I think you can do the means test yourself. It's not rocket science. The forms are at uscourts.gov, and the specific form you are looking for is B22A. Pull it down and look it over; you have nothing to lose. The same website you used to do it online should also have a current list of the IRS allowable expense limits.

I also, in your shoes, would try to get an atty that is or was also a Ch7 trustee in your area. Because they administer other bks on behalf of the court, they are exceptionally well positioned to take on more complex cases because they know it inside and out from both sides.

Anyway, those are just my thoughts -- good luck!!!

[JRScott]

I live in North Carolina.

What district are you?

(Meaning Western, Central or Eastern?)

Your income is considerably higher than the median income for North Carolina, however if your secured debt is high enough you might still be able to do a chapter 7.

Your situation is different than mine, however if you do live in the NW part of the state, then I can give you the lawyer's name I used. I'd recommend seeing 3-4 lawyers though.

[deadbrokeinnc]

I am in Greensboro, NC. Any suggestions???

[deadbrokeinnc]

Deadbroke,

I also, in your shoes, would try to get an atty that is or was also a Ch7 trustee in your area. Because they administer other bks on behalf of the court, they are exceptionally well positioned to take on more complex cases because they know it inside and out from both sides.

Anyway, those are just my thoughts -- good luck!!!

How can I find an attorney that was also a trustee??? I think that's a great idea.

[lrprn]

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