What do you think...

[25andbroke]

Hi im 25 years old rent an apartment in ny. This is are my stats:

39k unsecured debt (I know)
12k student loans
25k car loan
1375 rent payment

Minimul assets basics no collections or real property; just run of the mill things.

No large purchases over 600 dollars in the last 90 days.

Im a sales guys ytd made 30k gross but by sept ill have about 85k made gross.

Im behind on every cc payment. Current on my rent and car (just made it).

I have retained an attorney and plan to file by the 12th; I barley passed the means test (175). My only concern is when I have to appear for my 341 I will be getting a commission check for about 14k. With several this large to follow. Will the trustee see this? When I file this friday I will $150 in the bank.

I dont want to debate wheather to file or not. The consquences are short term after a 7. Ive seen I have a banking background after 18-24 months fico scores should be the upper 600's or low 700's. Most banks consider you a better risk after a 7 has been discharged because you have little or no debt. The reason im filing is so I can bank whats coming in over the next few months and have a nice down payment in 2 years. And pay for the engagement ring.

Thanks everyone!

[biotechsolution]

I would be prepared to be pushed into a chapter 13. And more than likely you will be at a 100% payback. If you're at 30K ytd, that's 60K/year for 1 person I would think may be over means. The UST is going to really look at your expenses and you more than likely are going to lose that first commission check.

[Trixie007]

You're kidding, right? I think the trustee would take a nice big bite out of you for filing a 7. I'm basing that solely on what you say here, since that's all we have to go on.

[JRScott]

What do you mean barely passed the means test?

Do you mean your income is barely lower than the median income?

or

Do you mean after filling in expenses you pass the test without presumption of abuse?

If it is the later be ready for the UST to challenge all your expenses that he can and try to knock you into a 13. IF you have 175 disposable income left after filling out schedule I and J then you are a 13 I'm pretty sure.

[25andbroke]

I have -175 on the means test, so i guess i worded that wrong I failed. Making 60k in metro ny is barely average. With legitimate expenses. The cost of living on long island is one of highest in the country. Also my tax rate is at about 35%, I'm single with no dependents, ouch. So my net income is likely lower than what you all may think.

[JRScott]

Okay so you had to take the full means test.

60k in the state of New York is over the median....around 12k over.....

But as you said the expenses in New York CIty and its suburbs is much higher than the state averages. So you can probably use numbers that are real but higher than the IRS standards. However be sure you can prove all the numbers and that all the expenses you used in it are legitimate allowed expenses.

The next thing might be to take your numbers and go to 3-4 consults. Let them look at your numbers and see what they think, try to hit Ch 7 lawyers only. They can tell you if the numbers would pass the local courts and trustees based on experience or should be able to, from there you can discuss options with them.

[ecsclb1724]

my husband and I live on 60K a year (nicely too, well after BK). $1250 mortgage, $650 babysitting, about 18K EACH in student loans.

To be honest, I say don't file and chop your budget. Take that 14K check and toss it right onto credit cards (yeah it may sting) and cut your debt by over 30%.

I honestly think with your income (being single, no kids) you should be able to throw 1K a month at debt and be out in two years (even sooner if you keep tossing those commission checks at it!).

I'd really take a hard look at your spending habits. I don't care how expensive NY is, your rent isn't THAT high, your car payment can't be THAT high... where's everything else going?

[Amy26]

If I was getting a 14k commission check I might not have had to file...

[25andbroke]

my husband and I live on 60K a year (nicely too, well after BK). $1250 mortgage, $650 babysitting, about 18K EACH in student loans.

To be honest, I say don't file and chop your budget. Take that 14K check and toss it right onto credit cards (yeah it may sting) and cut your debt by over 30%.

I honestly think with your income (being single, no kids) you should be able to throw 1K a month at debt and be out in two years (even sooner if you keep tossing those commission checks at it!).

I'd really take a hard look at your spending habits. I don't care how expensive NY is, your rent isn't THAT high, your car payment can't be THAT high... where's everything else going?

I can't stress this enough my rent payment is more than your mortgage. The cost of living on long island is in the top 10 in the US. My current debt payment is 1k a month so being out of debt in 2 years is not going to happen. The reason I am filing is
Like many other people due a fresh start. In 18-24 months my credit will be back on track. And I will have those large checks for a down payment on a home. Granted after taxes and healthcare I only take home 55%.

Thanks!

[hopeforus]

I honestly think it's kind of ridiculous to file when you are expecting so much money in the next few months. For just one person ... you shouldn't have that many expenses. I can't imagine how you won't be pushed into a chapter 13. What is the median income where you live for a chapter 7? If you are expecting 14k right after you file then more checks like that soon after... why can't you use those checks to pay your debt? Can't you give up your 25k car for something cheaper? I guess I don't understand at all. You are only one person and made 30k so far this year. How do you think you will get a chapter 7?

[hopeforus]

I just checked for New York, NY and for one person the median is $23,262. You are already way over that...

[pookieny]

NY state median is $45,525 for a single. I thought the look back for income is 6 months before your file date and not based on future earnings? Could be wrong? Is the OP legally ok to file before he recieves a commission check?

[hopeforus]

Isn't that for a year though? He's already made over the 6mos amount hasn't he?

[Amy26]

You are correct poo... I am in the same boat he is. My median for the last 6 months is way under but if I filed months from now I would be over the median. My qualm with it is more of an ethical one. If I was about to get a large check like that, I personally couldn't ethically file ... but that's just me.

[Amy26]

Isn't that for a year though? He's already made over the 6mos amount hasn't he?

6 months. He said he's only made 30k so far this year. Since he's in sales, its commission based so he's not salaried.