Advice needed please!!!!!

[struggling09]

1. Can someone please explain to me what it means to file an Aggressive Chapter 7 and if anyone is ever successful in doing so.

We are over the median income by a few thousand dollars; however, when the attorney computed our expenses, we are negative. Attorney advised us today she is filing an aggressive Chapter 7 tomorrow and that we may need to provide additional documentation, i.e. provide additional income, business receipts etc.

2. How can we provide additional income

SHe said we maybe forced to convert to a 13.

3. How does that work, if we can't fund a 13?

Lastly, we have a second mortgage (Home Equity Line ) that is due to adjust in 11/2011. Attorney advised there is nothing we can do with that in a Chapter 7.

4. In two years when that adjusts and if we are unable to make payment, will we lose our house if we are current on the 1st mortgage?

Thank you all for your help! I don't know what I would do without this forum!!!!

[southernbelle]

I'm not sure what an Agressive Chapter 7 is, but your atty can compute your disposable income from Schedules I and J and compare them with the Means Test results. If either of them show disposable income, there might be cause for the Trustee to push you into a Chapter 13. If in reality you can't afford that (as per the schedules) you might be okay if you can show those expenses as necessary and justifyable which means no cable t.v., private school, etc.

Proving your expenses might be what your atty means by agressive chapter 7. She might have to fight a little harder at the 341 if the Trustee asks questions about your expenses.

Ask your atty if you can amend your confirmed Ch 13 plan when your second mortgage increases since there will be a significant and long-lasting increase in your expenses that will affect your ability to pay the confirmed plan amount. You really can't do anything about it until you know how much the increase is and can submit that information to the Trustee.

More experienced folks will join in to give you advice, but that's JMO. Good luck.

[StartingOver08]

There are some benefits to a Ch 13 - like you can do a lien strip of your HELOC if the value of your home (current market value) is less than your first mortgage. You can not do that in the Ch 7 - so depending upon the value of your home, you may consider working with a Ch 13 since it is due to adjust in just a couple of years.