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

[ccmisery]

We are in the same boat. Were planning a 13, but lost my job and ended up filing a 7. Our 341 is coming up in early September, and the UST is already looking through our file and asking questions, but so far, so good. Our attorney doesn't seem overly concerned about it, so I'm trying not to be either. We were above median but the job loss put us below median, and our DMI is negative by a couple hundred bucks.

We're trying to discharge 100K of CC debt. Maybe I should get the vaseline ready for our proctology exam too.

As long as you do not have any red flags, you should be okay. I had CC debt, #1 reason why I had to file, lost my job not once, but twice in a year, fell behind on payments and was going to file a 13, but lost my job at around the same time I was planning to file, waited a couple of weeks, filed a 7 and it was not an issue. I discharged last week and waiting for closing.

[Idjut]

We are in the same boat. Were planning a 13, but lost my job and ended up filing a 7. Our 341 is coming up in early September, and the UST is already looking through our file and asking questions, but so far, so good. Our attorney doesn't seem overly concerned about it, so I'm trying not to be either. We were above median but the job loss put us below median, and our DMI is negative by a couple hundred bucks.

We're trying to discharge 100K of CC debt. Maybe I should get the vaseline ready for our proctology exam too.

[blockhead]

"The 341 meeting went very smoothly though and my attorney said everything looked fine since the UST wasn't there"
UST wasn't at mine either but audited me within 14 days or so. When they saw the 280K of CC debt I was discharging I think they thought "Mmm, better do our due diligence on this one" (aka proctology exam)

[TXskyblue]

I was well above median and tax returns from prior years showed even higher income. The first lawyer told me I was a chapter 13 hands down, and most likely 100% payback. I was pretty depressed.

I went to another lawyer and I relayed what the 1st lawyer said. He told me that I wasn't a slam dunk for a 7 and that it would be close, but I could probably qualify. With strategic planning and 6 months of time, I still didn't know that a chapter 7 would work until day 61 post-341.

The 341 meeting went very smoothly though and my attorney said everything looked fine since the UST wasn't there. At that point, I suspected my chapter 7 was going to work but I still didn't really know. Always had it in the back of my head that the UST was going to pop up on day 60 with a totality of circumstances objection.

[blockhead]

I knew it was going to work when I passed the US trustee's audit (for discharging 280K of credt card debt)

[Mom63]

Thanks for all the replies! I went through a lawyer that someone recommended. During our initial consultation, he said it was going to be close. After we filled out all the paperwork and gave it to them, we were in the negative after our expenses. He never mentioned that we might have to file for chapter 13 so hopefully chapter 7 will work. We are too old to deal with a chapter 13, along with our terrible health insurance and house needing a roof, etc.

[CreditCretin]

A good lawyer will make a world of difference. We too had interviewed a number of lawyers who upon seeing our income said "No way on a Chapter 7, at all." They didn't even try. We kept interviewing and found one that said it wasn't a slam dunk, but it could be done, as we were over the income limit, but over the means test with our expenses. If your lawyer feels fairly confident, that's a pretty good indication. Ours worked with us during the process when one question came up due to a paperwork error they quickly addressed it. Our 341 went very, very easily and we got our discharge in October 2010. If your expenses are legit and your means test shows you're left with a negative amount, you should be OK. Hope it all goes very well for you. I know, waiting is the WORST part.

[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.

[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!!

[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.

[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.

[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?

[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.

[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.

[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.