Bad News, Now What? Dismiss? Convert to 13??

[bruisedpeach]

Why do the bad letters always come on the weekend? A holiday weekend, no less. The first bit of bad news came on a Saturday...the worst yesterday. So the US Trustee is claiming abuse and 707b and all of that. When I look at the breakdown in the calculations, they are claiming I have $800 left in disposable income each month. (Knowing my budget, those figures certainly do not match.)

My questions are this:
What happens when/if you dismiss? Do creditors start calling immediately? Is it too late to negotiate with them, in terms of debt and repayment? Can the debt be adjusted and payments so that I can truly pay all of them off?

Or what happens with Chapter 13? Does the US Trustee require that I use that complete $800 that they claim I have each month to pay to the creditors? They are showing that $800 X 60 months would pay off 150% of my debt. Certainly, they don't expect me to pay more than I owe, do they???

What worries me is... for years I have been neglecting MY health and necessities to raise my daughter alone. All of my major appliances are over 10 years old. My TV as well. I have one kidney, and I haven't been getting the medical care I need. My fear is that under Chapter 13, I would be living a hand-to-mouth existence for the next 5 years, and that terrifies me.

Which option, at this point, would be the best option? (Would give me the most cash flow so I don't have to live in fear!)

Would love some feedback.

BP

[Flamingo]

Looks like your attorney tried to help you and get you through on a Chapter 7 and it is just not working out. I would suggest contacting him/her first thing Monday a.m. to find out where you go from this point. I would weigh out the options given to you by your attorney, since he/she knows your financial status the best, and go from there. You do need to note that any BK cannot be based on what you may need or what occurs as to future events or what appliance you may need next year. It is based on what is occuring right now so you need to bring up your worries with your attorney to assist you in the best decision. Best of luck to you...

[fltoo]

Do you have health insurance? Get the medical help you need and health insurance before you file BK. If you have health insurance but need to supplement it with more insurance to deal with the kidney problem in the future, get it now.

Best of luck and health to you.

[bruisedpeach]

The thing is, I feel he doesn't know my financial status best. The figures were misfigured, which is why I am in this mess. I gave them my paystubs--a full year's worth-- and they had my income showing about $500 less per month. I have no idea why. What also upsets me is...after that first official meeting, the only contact I had with him was at the 341 for about 5 minutes. Since then it's always the paralegal. I'm $1500 poorer and still facing a mountain of stress and discouragement. I do intend to call him...whether I will actually get to speak to him is another matter. I also realize they don't base repayment on future events--my one kidney is not a future event. I have been neglecting my yearly care just to get by previously. I'm 41 years old--I am all my daughter has. I'd like to live a long life so I can raise her.

BP

[bruisedpeach]

Do you have health insurance? Get the medical help you need and health insurance before you file BK. If you have health insurance but need to supplement it with more insurance to deal with the kidney problem in the future, get it now.

Best of luck and health to you.

I've already filed, though.

BP

[bruisedpeach]

Looks like your attorney tried to help you and get you through on a Chapter 7 and it is just not working out. I would suggest contacting him/her first thing Monday a.m. to find out where you go from this point. I would weigh out the options given to you by your attorney, since he/she knows your financial status the best, and go from there. You do need to note that any BK cannot be based on what you may need or what occurs as to future events or what appliance you may need next year. It is based on what is occuring right now so you need to bring up your worries with your attorney to assist you in the best decision. Best of luck to you...

I see that you filed a Chapter 13. Did they require you to pay your entire disposable income to the debtors?? I would love to have an idea as to what lies ahead. Chapter 13 vs. Dismissal. Clearly, I don't have a lot of faith in my attorney.

BP

[Flamingo]

The thing is, I feel he doesn't know my financial status best. The figures were misfigured, which is why I am in this mess. I gave them my paystubs--a full year's worth-- and they had my income showing about $500 less per month. I have no idea why. What also upsets me is...after that first official meeting, the only contact I had with him was at the 341 for about 5 minutes. Since then it's always the paralegal. I'm $1500 poorer and still facing a mountain of stress and discouragement. I do intend to call him...whether I will actually get to speak to him is another matter. I also realize they don't base repayment on future events--my one kidney is not a future event. I have neglecting my yearly care just to get by previously. I'm 41 years old--I am all my daughter has. I'd like to live a long life so I can raise her.

BP

Before you signed your papers to file, did you question why the income listed was $500 less before you allowed the papers to be filed? Filing BK and all the details and money worries associated with is awful and extremely stressful and you are at a bad time in trying to get your situation resolved and now run into this. Your first priority is to get this straightened out with the attorney. If you feel you were misrepresented or the attorney made a big mistake without your knowledge, you can file a Complaint with your State Bar Association as to the attorney and find a better one. I am sorry you have some medical issues and are strugglig to support your daughter but you need to realize the BK legal world is emotionless when it comes to that unless there are financial details concerning the same right in front of them. So you need to get this straightened out as it now stands with your attorney and ensure you have enough health and other coverage to protect yourself and your daughter. Do you have other family locally that can assist you with your health concerns so you don't have to neglect your care? Do you have support for your daughter from her father? Are there any support groups in your area for folks with medical issues such as yours? Just offering suggestions to possibly help you get by as to your situation...

[fltoo]

Do you have health insurance?

My lawyer was very concerned before I filed, that I only had "crisis" coverage and wanted me to get full coverage before filing. I opted not to for various reasons, but I qualified for the chapter 7 without the added expense.

Talk to the lawyer and see what can be done with ammending and adding more health care coverage. With one kidney and being sole support of your daughter, this is a serious concern for the future.

[banca rotta]

Not enough info to give you an honest answer. What did the means test say you have left over if any at the end of the month. What was your actual disposable income after your expenses?

If the means test said you would pass but your actual expenses states you have too much left over then you really need (or should have) bought health insurance, better car insurance make sure you have renters insurance, etc. These are allowable expenses not to mention you really need the health insurance.

Your options would be to go to court and fight it or take a dismissal and wait six months to refile which also has some issues in on itself such as a limited automatic stay. The creditors will start callling again once you dismiss.

[bruisedpeach]

Before you signed your papers to file, did you question why the income listed was $500 less before you allowed the papers to be filed? Filing BK and all the details and money worries associated with is awful and extremely stressful and you are at a bad time in trying to get your situation resolved and now run into this. Your first priority is to get this straightened out with the attorney. If you feel you were misrepresented or the attorney made a big mistake without your knowledge, you can file a Complaint with your State Bar Association as to the attorney and find a better one. I am sorry you have some medical issues and are strugglig to support your daughter but you need to realize the BK legal world is emotionless when it comes to that unless there are financial details concerning the same right in front of them. So you need to get this straightened out as it now stands with your attorney and ensure you have enough health and other coverage to protect yourself and your daughter. Do you have other family locally that can assist you with your health concerns so you don't have to neglect your care? Do you have support for your daughter from her father? Are there any support groups in your area for folks with medical issues such as yours? Just offering suggestions to possibly help you get by as to your situation...

They never showed me the financial breakdown or I would have questioned it!! I do have health insurance, but it does not pay out that well. The type of yearly care I need (an IVP and various lab work) ends up being costly even with insurance. I do not get support from the father--he left when I was pregnant--and that is not an option. My mother is a widow on a fixed income. So, no.

BP

[bruisedpeach]

Not enough info to give you an honest answer. What did the means test say you have left over if any at the end of the month. What was your actual disposable income after your expenses?

If the means test said you would pass but your actual expenses states you have too much left over then you really need (or should have) bought health insurance, better car insurance make sure you have renters insurance, etc. These are allowable expenses not to mention you really need the health insurance.

Your options would be to go to court and fight it or take a dismissal and wait six months to refile which also has some issues in on itself such as a limited automatic stay. The creditors will start callling again once you dismiss.

I actually did say that--the worksheet in the papers that the US Trustee sent me showed me having $800 in disposable income AFTER expenses, which I know is an exaggeration since everything is based on an average. I have car and medical insurance. I don't rent...I own a luxurious single wide.

BP

[Flamingo]

They never showed me the financial breakdown or I would have questioned it!! I do have health insurance, but it does not pay out that well. The type of yearly care I need (an IVP and various lab work) ends up being costly even with insurance. I do not get support from the father--he left when I was pregnant--and that is not an option. My mother is a widow on a fixed income. So, no.

BP

You were not given a copy of your filing to review/approve before you signed?

[banca rotta]

I actually did say that--the worksheet in the papers that the US Trustee sent me showed me having $800 in disposable income AFTER expenses, which I know is an exaggeration since everything is based on an average. I have car and medical insurance. I don't rent...I own a luxurious single wide.

BP

That's what the UST is saying. What did you submit to the court upon filing is what I am asking???

If your schedules state you have 800 leftover then yes you will be in a chapter 13.

Were there any red flags in your actual expenses that would justify the UST's acusation?

[bruisedpeach]

You were not given a copy of your filing to review/approve before you signed?

My assumption was they had *formulas* for everything, just like they had formulas for figuring out my expenses. (The amount of certain expenses being less than what they actually are because of the "average" it's based on.) I guess I shouldn't have assumed. What I did was a scan of the filing. I guess being naive was my mistake.

BP

[banca rotta]

You were not given a copy of your filing to review/approve before you signed?

It almost sounds like this is what happened.

If so the best move for the OP would be to dismiss and start over in six to eight months with a better attorney...