Well, I called some lawyers today....

[pandabear77]

Husband finally agreed to go bankrup, once I printed off some charts and graphs showing exactly where we are finacilly. I also showed him how much we have paid in two years vs. how much the balance went down (not much with 30% interest or higher on all cards!)

The lawyer we setteled on can do a Chapter 7 for $1409 and will take payments. He said we will be able to keep the house and van.

We deceided not to pay any of our cards this month because we figure what will be the point? Instead of paying of cards we are going to have some dental work done on my husband, get my kids some clothes, fix the washer, and buy a few Christmas presents. Oh, and fill up the gas tank in our van for the first time in over 6 months!

The lawyer has the paperwork in the mail for us to start filling out.

Hopefully 2007 will be a much better year than the past two!

Now, why do I feel so nervous and just plain "bad"? I feel like we've failed. Hubby has put in so many hours to pay down these bills and now it feels like our best wasn't enough.

[BK'd-Betty]

I know EXACTLY how you feel panda! Been there, done that, glad it's over.

I would venture to say every one on this board has felt like that at one time or another.

This too shall pass! I promise.

Once you feel the relief of crushing debt, you'll realize you had no choice. I'm will to go as far as to say that it's really not 100% your fault.

We live in a changing world and most american's are feeling the pain - and having trouble making ends meet.

Hang in there kiddo - everything is going to be A-OKAY! YOU ARE NOT A FAILURE!

Husband finally agreed to go bankrup, once I printed off some charts and graphs showing exactly where we are finacilly. I also showed him how much we have paid in two years vs. how much the balance went down (not much with 30% interest or higher on all cards!)

The lawyer we setteled on can do a Chapter 7 for $1409 and will take payments. He said we will be able to keep the house and van.

We deceided not to pay any of our cards this month because we figure what will be the point? Instead of paying of cards we are going to have some dental work done on my husband, get my kids some clothes, fix the washer, and buy a few Christmas presents. Oh, and fill up the gas tank in our van for the first time in over 6 months!

The lawyer has the paperwork in the mail for us to start filling out.

Hopefully 2007 will be a much better year than the past two!

Now, why do I feel so nervous and just plain "bad"? I feel like we've failed. Hubby has put in so many hours to pay down these bills and now it feels like our best wasn't enough.

[niteflytes]

I felt the same way at first, like I'd failed or could have done more and was beating myself up. But after I found this forum I realized that I'm far from alone. I've even discovered that people I know at work, parents of my daughter's friends, family members, etc. have filed BK or are considering it. I feel so much better now that I don't have to worry about creditors calling or worrying about how I'm going to pay my bills.

niteflytes

[pandabear77]

I'm glad someone else understands!

I broke down and told my parents. My mom seemed upset, but my dad told me about the time they went bankrupt in the 80's. I also found out my older brother went bankrupt, which was a total surprise!

Our lawyer said he has to "balance out our expenses" with out including what we would pay on our credit cards. So, basically he said he is taking what hubby makes and subtracting gas, mortgage, electric, that sort of stuff, but no credit cards to see what we have left over at the end of the month.

He said that will tell him if we can file 7 or if we should go into a 13. I don't understand why we have to do that since we are under Michigan's Median Income by $20,000. He told me being under the Median Income only qualifies you to file a chapter 7 and it's not guaranteed.(?) He is one of the best lawyer's in the area (we were told) and only does bankruptcies.

[lrprn]

Our lawyer said he has to "balance out our expenses" with out including what we would pay on our credit cards. So, basically he said he is taking what hubby makes and subtracting gas, mortgage, electric, that sort of stuff, but no credit cards to see what we have left over at the end of the month.

He said that will tell him if we can file 7 or if we should go into a 13. I don't understand why we have to do that since we are under Michigan's Median Income by $20,000. He told me being under the Median Income only qualifies you to file a chapter 7 and it's not guaranteed.(?) He is one of the best lawyer's in the area (we were told) and only does bankruptcies.

Don't worry, panda. Your lawyer is putting your income, asset, and expenses figures into the mandatory Means Test, which is required now after the bankruptcy law was modified last year. Since your income is $20,000 under the MI median, it's very likely the Means Test results will show that you are able to file Ch 7. Your lawyer is doing just what he should be doing.

[manglicmot]

I posted this chart once before: http://www.bankruptcyaction.com/questions.htm#c It says that if your income is less than the median in your state, you can file chapter 7. The flow chart only goes to the means test if your income is above the median. Is this chart accurate? I asked about it before but no one really commented specificaly on the chart.

[SinkingFast]

The chart is accurate in a "short cut", "quick, but dirty test" sort of way.

If your income is below the Median, you complete Form B22A. When you get to Line 14, you compare your earned income to the Median. If you're earned income is below the Median, you can check the "Presumption Does Not Arise" box on Line 15.

But,.......... The Court can consider the "Totality of Circumstances" in each and every case. There is no legal definition for what constitutes "Totality of Circumstances" so the Court has broad range there.

Even if you're below the Median, the Court could force you to Convert to a Ch 13 for any number of reasons.