I give up. I don't know what to do.

[Foofy610]

After reading several threads, and receiving your gracious comments... I assume we'll have to file CH13. The problem with that is... before too long we'll have to replace our cars (currently 8 & 11 years old) & furnace (27 y.o.), and have our chimney repaired at an estimated cost of $4,000. If we have to pay our DMI to a trustee, there's no way we'll be able to handle any of this.

We stopped using/paying our credit cards on July 31. If we wait until we replace our furnace & chimney, I'm afraid the credit card companies will sue us.

I'm really confused about this entire situation.

[momofthree]

You should have at least 6 months of non-payment before you are sued and even longer before garnishment would take place. There have been people on here who have made it 2 years without a judgment. My advice would be:
1. Buy 2 newer vehicles that will last you at least 5 years without needing major repairs. Keep the monthly payments below the IRS standard of $496/mo each.
2. Stop paying the credit cards once your financing for the vehicles is secured. Use that money to replace the furnace and chimney.
3. If you haven't been served yet, save up the largest emergency fund that you can exempt.
4. File for bk.

[Pandora]

I know its hard to fathom being in a CH. 13, however its not as bad as many make it out to be. You will be allowed to claim the standards and anything needed over and above the standards many times must be proven (i.e., receipts) to be allowed.

You need to sit down with your attorney and go over everything in-depth, right down to replacing your older vehicles with newer ones (that will take away from your + DMI). As to the furnace and chimney, you will have to save up for those repairs in your Ch. 13; that is what home maintenance is for. Is it easy? No.. but is it doable? Absolutely it is. We have been just over 1 year in a complete renovation (down to the dirt - total gut and re-do) in a room in our home, and we've had to do it little by little, saving where we could. Are we done yet? No... we still have quite a bit to do along with another room that must be done in order to complete this one - so while it may take another year of saving, it will get done; all while being in a Ch. 13.

Hang in there - it does get better. Your best bet is to do a realistic Schedule J - using IRS standards since you're over median, then factoring in reasonable expenses from there for a family of 2. Stop using all credit cards... you dont want an AP on your hands.

[karm43]

I agree! You safe for at least 6 months

[Foofy610]

I agree! You safe for at least 6 months

Will we be sued after 6 months?

[drowning123]

Speaking from my experience, not necessarily. They'll threaten you for like a year, then they'll file a complaint maybe at the point of a year and a half.

[Foofy610]

Now... I don't get this one. I just spoke with my attorney's paralegal regarding the cost for the furnace & chimney. She said to add them to the home maintenance line on Sched J. That will probably go over the Fed standard. What do you think?

[HHM]

If you have demonstrable need, then it is okay to go over standards. Schedule J is both about "current" and "expected" expenses.

[mustangman67]

We quit paying credit cards 18 months before filing and the only one that sued was American Express, we filed a response pro se and got it continued twice until after we filed. I had $500,000 in unsecured debt. Not to give advice but personally we were able to use that money to take care of a lot of things that needed done six months before filing. The preplanning thread here is MUST READING!

Kinda nice living a cash lifestyle now!

[Foofy610]

If you have demonstrable need, then it is okay to go over standards. Schedule J is both about "current" and "expected" expenses.

Would I need to get written estimates?

[HHM]

Maybe...you should at least be prepared to if asked.

[ValleYum]

Written estimates were key in our filing - I had (am having) some necessary expensive dental work done - implants to replace some ancient bridgework - and my dentist did a written 5 year treatment plan - we averaged that cost and used it as part of our monthly Medical/Dental expense.

The same could be done for Foofy's chimney and HVAC repairs, couldn't it?

With 2 car payments and the increased insurance premiums due to newer cars, Foofy may could still file a Chapter 7 and would have the newer vehicles needed if a Chapter 13 is still their result.

[Foofy610]

Val... I can't afford new cars. However, regarding the chimney & furnace... would I average the totals by 12 months?

[AngelinaCat]

Foofy, you can probably afford a newer used car to replace the oldest one, then later on, save up and plan for a replacement for the younger car. You do not have to have brand new vehicles. In this economy, people are dumping their excess property, including vehicles. There is usually one to be found on almost every corner. If you are fairly auto-savvy or have a friend to advise you, you can do well.

Good luck!

[Foofy610]

Angelina... do you have any idea about averaging my estimates for a furnace & chimney repair? Can I use 12 months?