Chapter 7 Strategy-New Filer

[robger99]

Am currently cutting back on overtime over the next couple of months in order to pass the means test and do a chapter 7. My cash flow will become limited-my attorney says that missed payments on credit card debt and mortgage will really torch my credit score more than just filing a quick chapter 7.It is currently a 787 prior to doing anything. Am planning on getting out of a slightly upside down house/27 k in cc debt(mostly inherited from divorce) and getting rid of an overmileage lease and a boat. Have a good income so living on cash should not be a problem. My dilemma is do I stop making payments a few months before filing and run credit score down more or try to keep up with payments and try to salvage credit with a quick chapter 7 with no missed or late payments? He says i can continue to use cc as long as they are small purchases like gas/groceries? Also says i can lease another car just prior to filing to reaffirm and dump the overmileage car and that this will make my debts higher making it slighlty easier to pass the means test. Even though I can clearly see the positive aspects of all this from a financial standpoint the whole process is making me nervous. Any input appreciated.

[justbroke]

I don't understand why you're filing. How much is your home worth?

[robger99]

I am not an extreme case for sure but after mortgage/car payment/boat payment/alimony/child support/cc payments-I am going backwards about 7k per year by chewing through retirement. House is worth about 190 k with mortgage of 210k. In Michigan so not coming back up in value for a long time. It is a question of cleaning up my balance sheet and getting smart going into my prime earning yrs for retirement savings. Problem with chapter 7 is I made 96k last year so would have to cut out a lot of ot over next few months to qualify-which I can do as it is mostly voluntary.