Pre BK advice/input

[fatherhill]

And--one more thing, for those that have filed a 7--

Did you pay anything at all to your credit cards between the time you decided to file/stop using them, and just let the phone ring off the hook everyday, or did you pay SOMETHING to some of them some of the time during the 3-6 month period, just out of conscience or the appearance of an effort?

Just wondering.

[keepmine]

You need to take the emtions and ethics questions out of the equation. Bk is just a business decision. Your best interest and your creditors best interest have diverged, Like any good capitalist, you'll act in what you perceive to be your own best interest.
If you intend to file, quit paying the creditors you'll discharge. That's what I did and filed 5 months after the last patment. Use the money for living exepenses and exempt assets, legal fees, etc.
Have you had any initial consultations?

[twuoo]

keepmine: when you stopped using your cc, did you also stop paying the mins the very same/next month?

I'm having a little trouble thinking how that looks if I use the cc, then don't bother to at least make an effort to pay the min for the next month or so.

[fatherhill]

OK--here's my big question for the day (and I'm sure it's been asked before, but I can't find it on the forum after searching and searching)....anyway--

MEDIAN INCOME FOR A FAMILY OF FOUR FOR MISSOURI is $65,909.

OUR INCOME WITH MY NEW JOB WILL BE $62,820.

Obviously, we are below the median, which means we're eligible to file chapter 7 (in six months, when they do the 6 month look back at wages).

Now, I understand that if a chapter 7 gets denied, I (we) will only have to pay back on a 36 month plan--

Here are the two things I don't understand:

1) Who gets to decide (or push the fact) that I should be made to go thru a 13 plan as opposed to a 7? The trustee? The judge? Creditors that may object? Is this where "how good your lawyer is" comes into play?

and...

2) I've played with the schedules, and online calculators, and while a lot of it is cut and dry, some of it gets really confusing--the biggest confusion expounded upon me is how the 13 repayment figure is calculated.

I've already discovered that, even though I've had the truck for sale for a long time, and finally sold it last month (kind of like an afterthought, cause it mostly just sat in the driveway), losing the truck payment expense is a sizeable loss on the secured/reaffirmable debt side of bk...oh well.

Thanks for the answers guys.

Oh, and by the way, we're not $60k in cc debt--organized every last bill today--the tune is over $75k--I tell ya, it really makes you take a good look in the mirror.

[lrprn]

Now, I understand that if a chapter 7 gets denied, I (we) will only have to pay back on a 36 month plan--

Not a guarantee, but even though you may end up in a Ch 13 plan that's 60 months long, you stay in the plan only as long as it takes to pay off the non-secured creditors who filed claims at 100%, and any secured or priority claims that are to be paid in full when your plan ends. Most of the time, all your creditors don't file claims, so after you pay back all you have to pay, your case is discharged and closed no matter how many months your plan started out to be.

1) Who gets to decide (or push the fact) that I should be made to go thru a 13 plan as opposed to a 7? The trustee? The judge? Creditors that may object? Is this where "how good your lawyer is" comes into play?

It's how you come out on the first and second part of the Means Test that decides which chapter you get to file. If your six months of income before filing is under the state median for your family size, it's 99% certain you can file Ch 7. If your income is over the median income but the Means Test shows less than $100/month disposable income, you get to file Ch 7. If the Means Test shows between $100-160/month disposable income, then it's a tossup which direction you may get pushed. If you show more than $160/month disposable income, it's Ch 13 time.

Creditors have absolutely nothing to say about which chapter you can file. How well your lawyer knows the acceptable limits for living expenses and other financials that influence the Means Test outcome in your bankruptcy district can make a huge difference when you are close to the median income.

2) I've played with the schedules, and online calculators, and while a lot of it is cut and dry, some of it gets really confusing--the biggest confusion expounded upon me is how the 13 repayment figure is calculated.

That's because there's so much interpretation on what can go into your living expenses and other areas of the Means Test, and there's variation between trustees and bk districts in how the Means Test is interpreted to generate the monthly Ch 13 payment amount. That's why having a bk-specialty lawyer who understands the law and is very familiar with the customs in your bk district is worth his/her weight in gold!