The lawyer we had a free consult with said we are borderline 13, but wants to refer us to another lawyer (the 1st one only does Ch7s) who he highly recommends. I honestly don't see how we can afford payments on a CH13. Both our cars are paid for and worth $2,000 and $3,400. I know our expenses are more than income by about $1,000/month. Are we defintely headed for a 13?
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Is that $1000 after everything is discharged? what are your expenses house? child care? have you don't the means test yourself? How many lawyer have you seen. the first one I saw jsut thought I would be fine if my wife filed on her own.Chapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008 -
I just found the Means Test calculator and ran the #s this evening for my state. According to it..we are $-2300 in the whole per month (does not include unsecured debt). Our monthly income though is above the median. I am a SAHM but watch 2 kids after school so I have a little income. Our gas bill (which is our only form of heat) is $465/month and that's the budget plan we've been on for 8 years. It just went up $155/month. It WAS $310/mo.
We have seen a lawyer who is referring us to another since we're borderline and they only do 7's. So he wanted us to be with a lawyer who could do both.
We have no child care..I'm the child care. My youngest started school this year and I was going to go back to work FT, but I am having extreme difficulty finding a job locally. I can't even find a PT one, but I am still looking. Since DH commutes 70 miles one way...I want to stay local. House is $2800/mo. We can pay it and tweak in other areas I guess. We have an ARM which will reset in 4.5 yrs. There's no equity in the house. Don't want to get rid of the house...yet. Maybe by the time it resets we'll be in a better place. I do want to move someday though.
DH was wondering..can they say...OK you qualify for a Ch7, but you have to get rid of the house? Is that something that can happen?Comment
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Well take a look at http://www.uscourts.gov/rules/BK_For...006J_1207f.pdfOriginally posted by 2muchinDebt View Post
schedule J thats the other half this is where the ruber hits the roadChapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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Bottom line, if you can't pass the means test for a Ch. 7, schedule J means nothing.
You will be able to claim any utilities in excess of the IRS allowance if you can show proof, as well as your mortgage in excess of the IRS allowance, that might assist you with lowering your disposible income.Comment
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PO is -2300 on the means testOriginally posted by Tbornetun View PostChapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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Something isn't adding up here, if they are -$2300, they would not be considered borderline. What numbers for deductions is the attorney using and what deductions is the OP using?
There is nothing borderline about -$2300 on a means test.Comment
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that's why I gave OP schedule JOriginally posted by Tbornetun View PostChapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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Are you having a little issue with me tonight or what?? In an attacking mode? Calm down.
The very first thing they need to figure out is what is going on with the means test. Schedule J includes a lot of items that you are not allowed to deduct on the means test. It is of no use to the OP at this point.Last edited by Tbornetun; 12-23-2008, 10:27 PM.Comment
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When the lawyer told us we were borderline 13...I am thinking he was just going by the income for a family of 4 in our state. I don't think he ran the means test on us. I did print out the schedule J and filled that out (plus when we went to credit counseling-to try debt management..she did something similar). Filling out the Schedule J...we're $-1,200/mo. When filling out the means tests the state/county allowances are smaller on some things (they don't allow what DH actually spends on commuting), they allow $469/car for payment, upkeep per car. Both cars are paid for, but aren't worth over $2-3,000 each. Our gas bill alone is $466/mo. The state allows $470 for house utilities so the gas gobbles that up. Electric is another $265/mo. State allows $1370 for a mortgage...ours is $2800/mo. When doing the schedule J it asks for medical costs, but I don't believe it asks for how much is taken out per check for medical insurance, life insurance etc.
I hope that explains it a little better.Comment
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Really I think the lawyer we first met with just didn't run the #s and only looked at our income. Since they don't do 13's at their office and he wasn't sure where we would "fit in" he referred us to another lawyer who does both and we would be able to stick with him whatever we qualify for. Even the lady at Credit counseling said with us being in the hole every month (after going over a budget) that we should be able to do a 7.Comment
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You should be about to file chapter 7 with no problem. the number you are looking for or NOT is $166.00. just so you know i had a +128.00 and filed chapter 7 thats why i rode a car and house through the BK.Originally posted by 2muchinDebt View PostChapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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Yep...we are far from that #. We go over the median income by $125/mo, but DMI is - negative by a lot so...
Hopefully our cars last for awhile! They've been good so far and are 3 yrs old.
I'll be glad when it's over with.
Can the trustee say...your mortgage is too high I'll let you do a Ch 7 if you give up the house?
And Thank you for your advice and have a great holiday!Comment
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