Ch 7 still viable

[Dreaming2]

Is chapter 7 still viable, a local lawyer who is also a trustee says no.

Income 41% higher than State Median Income. **This is what the lawyer/trustee is keying on. Basic belief that an income above the State Median pursumes abuse regardless is the Means Test shows otherwise even if the Means Test numbers are reasonable**

Passes the Means Test with a -$300 monthly disposal income.

Means Test included 1 car ($210 payment - 2 other cars being released), a house payment of $3400 (IRS lists $1386 for housing and util - 8 person household), using IRS standards for food/health care/etc, $223 insurance, medical ~$600.....

[destitute]

check with another lawyer. I was over the median by about 20,000 per year and with a household of 2 I had negative on my means test and am in a chapter 7

[goingcrzy]

When we filed we met with a few lawyers. There were some whose interest were clearly aligned with the creditors. One bragged about all this work a local bank was giving him, then told us we would have to reaffirm our house to file.

I believe some may be biased and not even know it.

With that said, how are the house prices in your area? We are on the West Coast in a major metropolitan area and were flagged by the UST for our almost 5K mortgage. (which is/was average for our area) She told us that if we didn't have the house, then we could pay back our creditors. So now we have to go to court to battle it out.

Check with a few other attorneys in your area. What I have learned is different areas have different opinions about expenses.
Good Luck!

[Dreaming2]

I could be wrong, but I believe the IRS list $1386 for housing and util for this area is misrepresenting. The area are is built-out (well established homes, no new housing). Most of the homes are well through their mortgages or outright owned. There are few new move-ins because the prices are high (young families can't afford them). It would be very skewed if the calculation is based on the average mortgage for the area (again most of the mortgages are old and very low in price or outright owned). There is no way a person could get away with $1386 for housing and util in this area. In fact $1400 would not even pay the rent for a 3 bedroom apartment.

This specific attorney checked with another attorney (they both do nothing but bankruptcies) and they don't know of a situation in which the income was so high compared to the state median. So it is their opinion which has no factual backing. They just think it will not go through (would end up costing a lot in court fees to fight a loosing battle).

[lrprn]

Never take the word of just one lawyer. Always set up free or low-cost initial consultations with at least 3-4 experience bankruptcy attorneys in your area, especially if your income is significantly over your state's median for your famlly size.

Is it iimpossible to file Ch 7 being significantly over the median income? No - we have members here who have done it. Do be prepared that if you do file Ch 7 being significantly over the median income, your case will be gone over with a fine toothed comb by both the Ch 7 local trustee and the US trustee. It had better be air-tight with excellent documentation of everything.

Good luck! Hope everything works out in your favor.