I Recommend Everyone Try Chpt. 7!!!

[Sept11]

Hello Chpt. 7 Board...I've posted several times on this forum during my chapter 7...and I'm very proud to say it's been discharged and now closed as of today. The reason I'm posting on this board is to encourage all those people out there with financial burden to talk with your lawyer and try for a chapter 7. You'll be AMAZED by how much money you can make above the means test and still qualify.

My wife and I had about 150,000 unsecured CC debt due to sickness and layoffs from work. Honest debt. After I was laid off the last time Jan. 1 2008...we had to wait almost 6 months to get our average income down for the means test. Before being laid off...I was making about 125,000 and my wife 50,000. So....here we were come January making only 50,000 (wife income) and unable to file Chpt. 7 because the means test takes the average of the previous 6 months. It would have looked like we made all this money and we would have been pushed into chapter 13 for sure....although we wouldn't be able to pay it back.

So...we live in New Jersey. So....it comes close to June (may sometime) and we're getting ready to file...I get a ridiculous job offer. Over 150,000 dollars a year. The type of opportunity you only get once in a lifetime. I tell the lawyer I have to take it. She says it will still be fine!!!

With the means test...we were able to use our 3800.00 mortgage payment as an expense eventhough we were surrendering the house during bankruptcy. I've read several times on this forum that this wasn't possible and only in certain districts it works. I was so nervous the entire bankrutpcy that this would be a problme and the trustee would object to this huge payment being deducted eventhough we're surrendering the house.

Well it went through. Never 1 snag whatsoever....at all! The 341 meeting was no more than 3 minutes. Not 1 creditor objection....period. Discharged within 48 hours of our 60 day expiration and closed within a week of discharge.

The bottom line everyone out there is go for it. Every single case is different and all they can say is no. Why try for a chapter 13 when you can whipe your entire debt out with no payment? We now got rid of about 150K worth of debt....got rid of our house that was worth almost 100K less than what we paid 3 years ago...and have a new start on life. We're now renting a huge apartment making well over 200K a year with no debt. TRY IT PEOPLE!!!

WE WERE ABLE TO USE OUR HOME MORTAGE (3,800.00) EVEN THOUGH WE WERE SURRENDERING! I couldn't figure out the entire bankruptyc in my head how the gov't could allow something like this? The means test IRS allowance for rent is like 1500.00 in my county in New Jersey. We got away with over 2300.00 extra in expenses.

We are truly blessed and take none of this for granted. We truly have that new beginning we prayed for every single night and are blessed. Thank God for everything and we pray for everyone on this forum. Please...PLEASE.....try chapter 7 before chapter 13. Don't assume you won't qualify just becasue you're over the means test....there are so many cases right now that you may slip through the cracks!!!

[outofluck07]

Yeah...ok

You know you're getting a job that pays 150K and you still don't feel a little bad about not paying back honest debt.....I don't think encouraging people to scam their way through (such as claiming a huge house payment as a "current monthly expense" that you have no intention of paying ever again) is ethical. I've read a lot of posts on here, but this blows me away. You must have known that that's not the way the means test works, or you wouldn't have been so nervous throughout your filing. What a shame. Anyone agree with me on this one?

[JRScott]

Congrats on being discharged. Remember to plan for the future. Remember your job could always been gone tomorrow, so plan accordingly. Make sure to save what you can and be generous in charitable giving as you are able to help others who are struggling. Remember to budget.

[whoops08]

You know you're getting a job that pays 150K and you still don't feel a little bad about not paying back honest debt.....I don't think encouraging people to scam their way through (such as claiming a huge house payment as a "current monthly expense" that you have no intention of paying ever again) is ethical. I've read a lot of posts on here, but this blows me away. You must have known that that's not the way the means test works, or you wouldn't have been so nervous throughout your filing. What a shame. Anyone agree with me on this one?

Hello. We are also in CH. 7 in the 60 day club in the state of California. Our attorney told us the same thing that we could use our current mortgage amount as an expense on our means test. It is a allowed expense on the means test even though we are surrendering the home.

I don't believe that any of us ever imagined that we would be filing bankruptcy. We are grateful that there is a way for us to have a fresh start. We are very happy to hear that SEPT11 case went very well. I hope the same happens for all of us.

Sept 11 congratulations on your fresh start!

[debtmonster]

I used to think that kind of money was a lot. It's not. The tax rate is super high at $150k. Plus the taxes in NJ are insane. I know a lot of people in NJ pay an INSANE $8,000/yr. property taxes. I don't know how people can even afford that. After all expenses and taxes, you barely net anything. You can make much less living in another state and come out ahead by much more. The northeastern states give you very little buying power because of the high cost of living and high taxes. That's why states like Florida, Tennessee, Texas and Nevada are nice to live in. They have much lower taxes. If you could make $150k in Florida, you'd be living like a king.

[cool33097]

Congratulations!
We were not able to use our mortgage payment like you did, but I am happy that worked for you.
I disagree with the previous poster, if you make 150k and live in FL you DO NOT live like a king. FL is very expensive to live.
Good luck on you new life free of debt.

[keepmine]

I don't see anything unethical in the post. The poster lives in a district that allows this as a legimate expense. He did nothing illegal or underhanded.

[Mi Bankruptcy]

I don't agree with your observation

You know you're getting a job that pays 150K and you still don't feel a little bad about not paying back honest debt.....I don't think encouraging people to scam their way through (such as claiming a huge house payment as a "current monthly expense" that you have no intention of paying ever again) is ethical. I've read a lot of posts on here, but this blows me away. You must have known that that's not the way the means test works, or you wouldn't have been so nervous throughout your filing. What a shame. Anyone agree with me on this one?

The individual post was remorseful. They used a method established by our court system. The post also encouraged other people to not assume they wouldn't qualify for CH7. The way I see it, the post targeted people that may feel hopeless and feel their only option is CH13. The poster tried to give hope to people that feel forced to CH13. They encouraged other people considering filing to look at the entire process rather than settling for CH13 and 3-5 years of paying on debt and incurring more stress. Just.. my opinion..

[Sept11]

Thanks!

Unbelievable how somebody can twist your words into cruel intentions. Sorry if I came off that way....I can't tell you how truly honest and positive my intentions were with this post. My wife and I are so HAPPY to have this fresh start and I by no means meant to come off as being cocky and like we pulled one past the system. I wanted to show the people on this forum that there is hope. I was there 4 months ago...absolutely freaking out that I was ready to file bankruptcy. And yes....it was honest debt.....almost all medical bills from my wife's "near-death" experience. But that doesn't matter. I didn't include my 150K salary for bragging rights... I included it to show everyone that the means test is ONLY a starting point. Just because you're over doesn't mean you should give up.

So...to the 1st responder to my post...you're dead wrong buddy. I wasn't at all bragging about pulling one over on the system. I wrote right in my post how nervous we were because our lawyers told us we could write our house as an expense on our means test eventhough surrendering it. It's scary when you put your life into a lawyer's hands and you trust their words. We sweated the entire process out not because we felt guilty....because it seemed too good to be true.

Our case truly shows that chapter 7 bankruptcy is truly a snapshot in time. It goes by the previous 6 months of income when filing....not how much you'll make in the future. You're new beginning in life starts the day after you file chapter 7. The fact that I got a great job offer after filing isn't being sneaky...it's the begininning of a new chapter in my life. Why wouldn't I take advantage of paying back nothing and starting over if it's the law in my jurisdiction? Are you saying that you'd actually pay back money if you could be off the hook? Sounds like you may be a bitter chapter 13 case paying some money back.

Oh yeah....1 more thing. It's not like we walk away totally free of any negative happenings. Our credit is now SHOT for many years to come. What happens when our car lease is up in six months? What about buying a house in a couple years? We will pay greatly for this decision to file chapter 7....however....we were backed into a corner and had no choice.

My intentions were to encourage those stressed and going crazy over their financial situation. Don't think you have to do a chapter 13 if you're over the means test. A good lawyer can get your expenses down so much more than you could ever imagine. GOOD LUCK TO ALL and please ask any questions if you need help!

[Sept11]

Oh Yeah...

Oh Yeah...one more thing....to the 1st responder to my post...did you read my final paragraph????

"We are truly blessed and take none of this for granted. We truly have that new beginning we prayed for every single night and are blessed. Thank God for everything and we pray for everyone on this forum. Please...PLEASE.....try chapter 7 before chapter 13. Don't assume you won't qualify just becasue you're over the means test....there are so many cases right now that you may slip through the cracks!!!"

This was a sincere and motivational post. PERIOD.

[b_girl]

While there are people who do 'play' the BK system for all its worth, I certainly didn't read that in this post. I am happy for your fresh start and also encourage those above the median to go for a Ch 7. It also worked for us, thank goodness, because Ch. 13 was simply not a realistic option for us.

[TEW]

I'm glad you made out thanks for sharing.

[pmed8]

At first I thought you were gloating, but after reading your post completely I realized you weren't doing that at all. However, I have to say, anyone who can pull off screwing the system I applaud. Credit Card companies are the root of all evil as far as I am concerned. Many times by the time people have filed bankruptcy they have paid the original balance off and then some.

I have absolutely zero guilt or regret about filing bankruptcy. I consider it a financial decision that for some people, given the right situation and circumstances, is a great idea. It can speed up someones ability to get their finances straight and start building wealth.

Its been said here before that businesses don't hesitate to file bankruptcy and keep right on doing business. I don't see why people should be any different.

Pmed8

[magyar123]

Absolutely nothing wrong with filing Chapter 7s and making sure that you qualify. The govt. is now bailing out banks. Filing bankruptcy is bailing yourself out.

[gophermn]

Sept11, you do bring up a good point. People! By all means DO NOT just google Means test and find out you fail the test. I did that at least 3 or 4 times and failed everytime. I then went to an attny and found out I missed A LOT.
Our income was roughly $110k with $60k in CC and almost $550k in homestead and rental.
So, stealing Sept11th thread, don't just go off of a web search Means test. Seek an attny or talk with people in this forum who filed on their own.

Good luck!