Bankruptcy Question???

[jwsmartin]

We have had our first meeting with the lawyer, and we are doing our homework. I was wondering if anyone had any advice on a couple things.

1 - We make more than the median, so we are starting a chapter 13, but when figuring our monthly bills, we are coming up $1000 short (mainly from daycare and baby items). Do they take bonus checks from work into account? Also, will they convert to chapter 7, or will they say that I should spend less on food, daycare, clothes, cable, etc?

2 - We purchased a hot tub earlier this year, but have yet to make a payment on it. (No payments for 12 months) Will we be able to keep this? We would like to, since I expect a promotion by next summer, or at least to be making more when it is time to pay for it.

Thanks.

[CATCHMEIFYOUCAN]

We have had our first meeting with the lawyer, and we are doing our homework. I was wondering if anyone had any advice on a couple things.

1 - We make more than the median, so we are starting a chapter 13, but when figuring our monthly bills, we are coming up $1000 short (mainly from daycare and baby items). Do they take bonus checks from work into account? Also, will they convert to chapter 7, or will they say that I should spend less on food, daycare, clothes, cable, etc?
Claim as many expenses as necessary according to the IRS Standards for your city/State you reside in. If you are doing your homework you will know what the standards are. The Means Test is just a test to see if there is if you have any disposable income, however, don't rely on the means test - its schedule I and J they really look at. (for example, im filing in the state of VA, even though the Means Test showed I had No disposable income, shchedule I and J showed I had plenty! So I had to file for Chapter 13. I work 2 full time jobs so that put me over the median.

2 - We purchased a hot tub earlier this year, but have yet to make a payment on it. (No payments for 12 months) Will we be able to keep this? We would like to, since I expect a promotion by next summer, or at least to be making more when it is time to pay for it.
You will have to list it as a debt, if you haven't made any payments there is a good chance the creditor may want it back! I don't think its a necessary item. I would start making payments on it! This is something you'll have to ask your lawyer about.

Best Wishes, Catchmeifyoucan

[lrprn]

We have had our first meeting with the lawyer, and we are doing our homework. I was wondering if anyone had any advice on a couple things.

1 - We make more than the median, so we are starting a chapter 13, but when figuring our monthly bills, we are coming up $1000 short (mainly from daycare and baby items). Do they take bonus checks from work into account? Also, will they convert to chapter 7, or will they say that I should spend less on food, daycare, clothes, cable, etc?

Did your lawyer take your income and expenses and put them through the Means Test? This is all that matters when deciding whether you qualify for a Ch 7 or have to file Ch 13. And yes, if you are in bankruptcy up to six months after discharge, the trustee will be very interested in any bonus check, especially if it's over $1000. The trustee isn't there to be your family budget guru - he/she looks at how much you can pay your creditors. Whatever you put on your bk forms for expenses, just be sure it's reasonable and matches the standard for your community.

2 - We purchased a hot tub earlier this year, but have yet to make a payment on it. (No payments for 12 months) Will we be able to keep this? We would like to, since I expect a promotion by next summer, or at least to be making more when it is time to pay for it.

Given a hottub's value so close to its purchase date, the company is likely to take it back rather than give it up. You could choose to reaffirm the loan to keep it, but most bk lawyers advise against this. A hottub is a luxury, so even if the company lets it go, your trustee may be interested in taking it and selling it to get money for your creditors. And as difficult as it may be to let something you want go, remember you are filing bankruptcy. Don't ruin your fresh start by counting on a promotion that may never come to try to keep a hottub that is a luxury, not a necessity. Just trying to help you see that if you don't change your financial ways, eventually bankruptcy could be just around the corner again before you know it.

Thanks.

Good luck with whatever you decide to do. Remember we are here - come for support or just to vent anytime!

[RBAllis]

As far as the hot tub, my understanding is that you have affirm the debt, saying that you intend to make the payments.

[lrprn]

RBAllis, please do not post to threads that have been inactive for longer than a few months - it's against our forum rules. The information in these old threads may no longer be accurate and many of the posters have moved on after their cases were discharged. In the future, if you have a question, please start your own new thread - thanks!