New here with question about qualifying for Ch 7

[buffetbuster]

I've been lurking here for some time now, but just couldn't find what I'm looking for searching posts, so I figure I'd ask in my own post...

My wife and I are meeting with our lawyer at the end of the week to do our credit counselling. He said he is going to try to push for a Ch 7 depending on how our means test goes. In filling out our monthly budget, I noticed that our monthly budget is close to, if not exceeding, or monthly income. Does this automatically put us in a CH7?

Any help or advice would be great.

Thanks!

[keepsmiling]

Hi and welcome! Keep reading, lots of great people and advice here!
The answer to your question is, "it depends". Luckily your attorney seems willing to work with you, has done this before, and knows what will fly with the tt's, so chances are good you will be ok. I take it you are higher income? You aren't counting your cc payments in your budget, right?

[buffetbuster]

keepsmiling - My attorney said we are going to push hard for a Ch 7. He said he only lost 1 case, whether ch 7 or ch 13, and that's because his client was withholding information from him. As far as our income, we are mid 60k combined. I forget what the income requirement is in PA, but I'm hoping we can swing some numbers. When we did our budget, I didn't realize how much money we really don't have. I didn't include anything that would be discharged in the bk in my figures. I guess we'll see on Fri. This whole thing is very scary and frustrating.

[debee]

Hi buffet,

You can go to this website and run the means test. You enter your zipcode and family size and it will enter the automated figures for our state/county. http://www.legalconsumer.com/bankruptcy/nolo/ I found it relieved my stress levels to tinker with it.

You want your income minus expenses to come out less then $120 or so. You can download the schedules I and J here: http://www.uscourts.gov/FormsAndFees...ptcyForms.aspx


Most of us in the days leading up to bk altered our budgets in order to pay bills. Many of us dropped life insurance, reduced health coverage, raised deductibles, etc.

If this sounds like you (and even if it doesn't) now is a good time to get term life insurance on both adults, increase health coverage, lower deductibles, and increase home/car insurance coverage. This creates expense but in a way that is financially wise and permitted prior to a bk filing.

You don't want to end up with no credit card and a big deductible you can't pay. You also don't want to end up having too much disposable income in your monthly budget.

EDIT TO ADD: When you run the means test above, you will find out whether you are qualified to file a chapter 7. If you qualify to file, then your next hurdle is the schedule I and J. So long as your monthly disposable income doesn't exceed $115, and your debts are dischargeable, etc, you should be able to file a successful chapter 7.