means test VS Schedule J?

[Jovigirl22]

I consulted with an attorney last week, and am MORE confused than before I went!

My husband and I are above the YEARLY medium income by $3,716, however, when I use the NOLO means test, it says we pass, since we only have $61 disposable monthly income. We live in a rural area of Northwest Indiana, and apparently in a pretty strict district. Our lawyer told us that to get a Chapter 7, there must be ZERO DMI, that even if it was $20.00, the trustees will want a Chapter 13. Our credit card debt is $52,000, so $13,000 is needed to make 25%, and a repayment of $61.00 a month would only get them a total of $3660 in five years. If this is the case, what is the schedule J for? Also, I see people on here saying that on their schedule J they have vet expenses, hair cuts, etc..........but the form itself only asks: Rent, utitlities, home maintenance, food, clothing, laundry, medical, transportation, insurance, taxes, rec, charity, etc. Can I get a chapter 7 based on a schedule J? Am I allowed any DMI income on a schedue J, or does bottom line need to be zero?
As it stands right now, we cant file any sooner than October, since this lawyer is adamant that our tax refund recieved in March is counted as income over 6 months. We are still paying CC's, but soon the day will come where our tax refund is gone, and we will be back to charging our utiltiy bill ,phone bill, and groceries, in order to have cash to pay the CC's.

So frustrated, appreciate advice

JH

[momofthree]

If you're going to file bk, stop paying your credit cards...

Those below the median income aren't subject to having to fill out the means test, so the schedules I&J are the only figure that shows DMI for these borrowers.

[Jovigirl22]

A friend of mine was sued by Discover and Citibank within 4 months of not paying, so if I cant file until ATLEAST october, I am likely to have judgements agaisnt us.

[newbie2]

Consult with another attorney, 2 or 3 more for that matter. I know nothing about your district other that what you have stated here, but normally DMI of that low of an amount does not trigger a Chapter 13.

Please, take a deep breath (a few if need be) and call to make appointments to see other attorneys.

Good luck to you!

[Jovigirl22]

Actually, this was our second atty consult. The first completely disagreed about the income tax refund issue, but his office is in the next district, which is quite liberal. He does BK's in this district, but I have a feeling that it isnt often. The second atty soley works in this district, said there were 2 trustees, and both were TOUGH. The second atty pretty much told me that if we wanted a 7, we needed to drop below the medium income....PERIOD. I work part time, make under $10,000 a year. He strongly urged me to be a stay at home mom. I dont clear much after daycare and gas, but after the bk, we will need every penny possible.

[Jovigirl22]

Also, the first atty kept using words that made us think he wanted us in a 13, even though we were ONLY considering a 7. Its not the idea of repaying debt that we hate, but we live in a rural area and it is a 110 mile round trip for my husbands work, 75 round trip for mine. Our aging parents also live almost an hour away. If we had a 13, we would be stuck here for 5 yrs repayment, 2 more to repair credit. Last year, we tried to sell our home, thinking we could get back to civilization and closer to parents, then file whatever chapter necessary. Obviously, the house didnt sell, and that was asking $20,000 over our loan amount.
2 weeks ago, me and the MR had one of our usual fights over our crappy money situation. He demanded that we not put it off any longer and we consult with an atty. Problem is, after 2 appt's, I am more stressed than before, cant sleep, all I think about is NUMBERS and scenarios in my head. I dont know that I can take 6 months of all this stress before we know if we can even file.