When did you know that a Chapter 7 was going to work?

[Mom63]

Hi, I am kind of new here, but have been lurking and learning. We filed last week and we were over the income limit but pass the means test with a negative amount left (according to the lawyers petition). We are a no asset case and we are keeping our home. We have our 341 in September. I know by reading here that nothing is concrete until the bankruptcy is discharged, but when did you have a pretty good idea that a 7 was going to work?

So nervous.......because of our ages (over 50) and because our medical insurance doesn't pay anything until we reach a $5000.00 deductible per person. We just cannot do a chapter 13. I don't see that it could work at all and I am just hoping that the chapter 7 will go through. The lawyer says it is close, but he thinks it will work out.......

[tobee43]

we also were in the same age group and very close as well, although the only income we had left after we were both laid off was ss, pension and ei, all exempt income. however, some of the attys we went to see insisted we file a 13 because the combined income was so high, although they all were exempt. we knew once the ei stopped we would have to convert to a 7 anyway so what was the point? (other than additional atty fees!) it ended up working well for us we completed a chapter 7 no asset case, if your atty is confident i'm sure it will go through, we were very nervous about it as well.

let me explain the process a bit. first you file your petition, then you are given a date for your 341 hearing, at which point you will know if the trustee will allow you going forward with a no asset 7...sometimes, (like in our case) we knew before the 341 since the trustees office had questions they wanted answered prior to the 341.

after the 341 you have a 60 day waiting period for anyone to object to your case. that includes the US trustee as well as any and all creditors. after those 60 days pass you will be issued an order of "discharge" and then at times on the same day or up to a month later (some cases longer, you are issued an order of "close". so, it is well before the discharge that you will know whether or not you are a chapter 7 no asset or asset or a 13.

best of luck, we all know there is much stress involved with filing. however, all of this will pass and you will be on your way to a new debt free life!! just hang in there

[btbeme]

A good indication that your "borderline" case is going well would be a quick and easy 341 meeting. That is far from a guarantee; however, as there are many elements (including the US Trustee's office) that can get involved. But if your 341 meeting is smooth and without surprises (your atty should prepare you to answer the "borderline" questions and should also have a good feel for how your particular Trustee usually reacts to such files) then you can breathe a LITTLE easier.

It ain't over till it's over, though. It is pretty tough sledding to get an over median file through without a few bumps. Over median income usually requires the debtor to have more debts than usual, which is counter-intuitive to the whole BK process. But there are plenty of legitimate, justifiable, and reasonable expenses that an over median filer might have, so as long as you haven't had to s t r e t c h the expenses in order to limbo under the Means Test bar, that is a better place to be.

[Forthebirds]

I knew we were probably home free when we had a 5 minute 341, with no issues raised at that meeting. We were 22k over the median and easily passed the means test with child care expenses alone. If you have legitimate expenses that allow you to pass the means test, you should be fine. We also had the toughest trustee (said our attorney).

[stevie2012]

I spoke to six attorneys - all of them told me Ch 13 only bc of my income. I kept searching until one gave me solid answers and said with proper planning I could get a Ch 7. And here I am, 59 days now after my 341 - awaiting discharge for my Ch 7.

[pamkev]

Yes the lawyers I saw said Chapter 13 all except one she was the only one who really took the time and said 7 could be possible and it was.

[AngelinaCat]

We never had any indication that our CH7 was going to be 'easy' until we were actually Discharged.

We made so many useless and stupid mistakes in the course of our preparation, for and during our bankruptcy, that it is almost embarrassing. It is also embarrassing to say that our attorney did not prepare or educate us in the process. We also went with the first attorney we saw.

We did not learn of this forum until well after we filed, and made all of our mistakes. Therefore, we stick around trying to help others not to make our mistakes.

[ccmisery]

I was going to file a 13, but lost my job a right before I planned to file, lawyer changed it to a 7 and I am nearing discharge. I am still unsure if it will be cut and dry since I have read creditors have objected at the last moment.

The dumbest thing I did was delaying bankruptcy, I originally contemplated it in 2007 now here I am 6 years later finally doing it, two job losses in a year made me realize it was time.

[AngelinaCat]

We also were trying for a CH13. Then I lost my FT job, and 'Hub lost his main computer consulting gig. We had no choice but to go for a CH7. That was the end of 2007.

[stevie2012]

The dumbest thing I did was delaying bankruptcy, I originally contemplated it in 2007 now here I am 6 years later finally doing it, two job losses in a year made me realize it was time.

Me too.

[stevie2012]

We also were trying for a CH13. Then I lost my FT job, and 'Hub lost his main computer consulting gig. We had no choice but to go for a CH7. That was the end of 2007.

If you don't mind me asking, why would you have preferred the Ch 13?

[ccmisery]

Me too.

I delayed it because the lawyer during my free consultation made it sound like I was going to be paying back 100% with a 13, they failed to mention the means test and etc. I would have been a 13 regardless, 100% payback unlikely, but I was not too up on the means test and etc, so uninformed I decided to hold off.

If I had to do a 13 presently, I believe it would have been tough for me since I took a serious pay cut and am barely scraping by as it is. I lost some assets but that's the way it goes.

[AngelinaCat]

If you don't mind me asking, why would you have preferred the Ch 13?

We were trying to do the "honorable thing"--we still had the old stereotypes at play in our heads--and at least pay something toward our debts. We also had an Enemy that was cyber-stalking, cyber-bullying, and harassing us with frivolous serial lawsuits. A five-year CH13 would 'toll' or halt that activity for the five years. We were hoping the Enemy would pass from this Mortal vale during that time.

[stevie2012]

I delayed it because the lawyer during my free consultation made it sound like I was going to be paying back 100% with a 13, they failed to mention the means test and etc. I would have been a 13 regardless, 100% payback unlikely, but I was not too up on the means test and etc, so uninformed I decided to hold off.

If I had to do a 13 presently, I believe it would have been tough for me since I took a serious pay cut and am barely scraping by as it is. I lost some assets but that's the way it goes.

I swear our cases sound near identical. My initial consult scared me for the exact reason you said!!

[stevie2012]

We were trying to do the "honorable thing"--we still had the old stereotypes at play in our heads--and at least pay something toward our debts. We also had an Enemy that was cyber-stalking, cyber-bullying, and harassing us with frivolous serial lawsuits. A five-year CH13 would 'toll' or halt that activity for the five years. We were hoping the Enemy would pass from this Mortal vale during that time.

I understand.