I need to find some direct answers

[jwmc1]

OK, I have been reading these threads for about three weeks. I have contacted two attorneys, but have not yet met with them, as I want to educate myself as much as possible. I have purchased both the 7 & 13 NOLO books and have done a complete inventory of all my assets.

My major asset is my house and it is worth about $180,000. About five years ago I tried to payoff all my creditors using a second mortgage loan. As a result my house has about $280,000 in debt on it, with the first mortgage being about $185,000. I understand that I could likely strip the lien in a 13, but I would rather discharge the unsecured debt in a 7.

After completing my personal financial statement, I have computed my net worth to be about -$190,000. Outside of my mortgage, my debts are as follows:

Unsecured debt $56,000
Income taxes 27,000
Property taxes 7,000

My income is above the median and I do not pass the means test. One of the attorneys I spoke with briefly thought I would still "likely qualify for a Chapter 7."

So, my question is this; do I have any hope of being able to file Chapter 7? If I file for Chapter 7 would it be the judge or the US Trustee that would challenge it, and if challenged could I possibly prevail?

Thanks

[JSFleischman]

Being above median income and not passing the means test translates into, "Now, I've got to do the second part of the means test to see if my disposable monthly income is positive or negative." If it's negative you may be able to get into a Chapter 7.

But if you can file a Chapter 13, pay a modest amount each month for 60 months and walk away without a second mortgage ... financially, that may make more sense. Remember, the goal of a bankruptcy is to make you life easier rather than just get rid of the easy debts as fast as possible.

Sounds as if you're on the right track by visiting with a lawyer. Get his or her take on the situation, make an honest assessment on your own, and act from there. Until you meet with the lawyer, you've seemingly done all you can for now.

Good luck!