?????about bankruptsy

[encartaman]

Hello..new here. I think I might have to file and I have been off work for almost 3 months and am behind on some stuff

Well anyways here's the story: My wife and I have been working very hard to get out of debt for a while; in Dec. 2006 I re-enlisted in the national guard, and upon doing so I received a bonus of $7500 dollars, which after taxes i netted $5600, and the extra income from the NG helps.

With the money, I paid off this computer(dell), got caught up on some bills, bought some clothes for my daughter and wife, about 400 dollars worth, and put the rest toward other bills

Before I reenlisted, my wife's mother passed away; as a result of which, my wife quit her job to take some time off (but it was a dead end job anyways), but she is working again. Anyway we were doing pretty good keeping up paying on our bills, but then I went on my 2 week training and end up having a hernia; as a result, I have been off my regular job(have been at that job for 19 years) since July 15. I surgery august 23 (scheduling problems with doc)

My question is, if we file BK, I am concerned that I don't think we can file chapter 7 because we make to much money, but I would rather do 13 and pay something;

1. Do they take the money out of your check at work, or do you pay the trustee Directly
2. Also would my army national guard pay be effected? The income from the NG is a different amount every month depending on how many days we drill?
3. Would I have to tell my guard unit--so embarrassing?

Income: I make about $22,000 at my regular job and about $12,000 in the army (7,500 of that being bonus minus the taxes which they already took out and left me with 5,600). My wife has made about $12,000 so far.

Debts: We owe around $95,000 total, 64,000 for house, ($570 a month); $15,000 (250month) unsecured loan(Beneficial); $10,000 (250 a month) for a personal loan from Citifinance (which I put my car on for collat, but the car is only worth about $3,000) If I pay down the Citifinance loan to $7,500 they will return the car title. My wife has $4,500 on a Cabelas card and about $2,000 on another credit card

In addition, we have the usual assortment of monthly bills, elec. $100, water $90, insurance $160, sat/tv, Internet, food.

I live in West Virginia, but I don't know all the laws and means test, we are a family of 3. I don't want to file but when you get behind, it seems like there is no way out. Sorry for being so long, but any help would be great. Thank you.

Normally I don't edit member's posts, but I had to in this case. Please do not take offense, but the post was very difficult to read. Feel free to use capitalization, the space bar, and enter key when writing messages to this forum. If I have made a mistake in the editing the content, please feel free to correct it, some of what you said was a little confusing., HHM

[qwertysue]

[Duplicate]

[HHM]

Welcome to the forum. I hope you don't mind that I cleaned up your post.

In any event, to address some of your issues (others will chime in as well).

Regarding chapter 7 vs 13. Frankly, chapter 7 is almost always a better option if you qualify. You don't get any "brownie points" for paying something back. Thus, if you can qualify for a chapter 7, then go that route.

If you did end up in a chapter 13...the method of payments varies from district to district and trustee to trustee. Some trustees require payroll deductions, others give you the choice to do payroll deduction or pay them directly with a cashiers check.

Your NG unit probably won't find out...they won't be notified, but keep in mind the BK filings are Public files, so anyone can find out and in many districts, the local newspaper publish a list of those who have filed BK.

In any event, welcome to the forum, you will find nearly everyone is friendly and helpful.

[JollyGG]

Okay, you listed your annual income. But with you being on disability right now what we actually need is how much you made over the last six months?
You enlisted in december - when was it you got your bonus?

The median income for a family of three in west virgina is $47,613 http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm

It might be a good idea for you to take this online means test to get an idea as to where you fall and weather a chapter 7 or a chapter 13 is a probability http://www.legalconsumer.com/means-t...ator/index.php

As to you questions about a chapter 13. 1. Most trustee's take the money out of your check at work however different trustee's have different preferences and you lawyers should be able to tell you how it generally works in your area, 2. You national gard pay would be considered income and would be averaged to get an approximate amount each month. 3. Would kinda depend on how your trustee handles question 1. In any case your unit wouldn't be notified but payroll may find out if payments need to come out of that amount.

You need to schedule 3-4 meetings with lawyers to go over your situation. Meeting with different lawyers will teach you alot about your situation and help you understand your options better.

[encartaman]

hello...thanks for the replys,and sorry for being so long on the writing, it was a little confusing,just frustrated with all this,needed to vent,i also had another ? we have a 2003 van that is paid for,it is worth around 7500,will i lose it?if i file. again thanks for the replys and help.

[JollyGG]

The paid for van you will be able to keep assuming you can cover the value of it with one or more of your exemptions.

It looks to me like West Virginia has a $2,400 vehicle exemptions and a wildcard exemption of $800. http://www.bankruptcyinformation.com/WV_exemp.htm

The homestead exemption is $25,000; unused portion of homestead may be applied to any property

So you may be able to cover it with those.

The car that is collaterol for the citifinancial loan you may be better off letting go. You can reafirm secured debt and agree to pay it in order to keep the underlying collaterol. Unfortunatelly, this would be a bad idea in your case as the loan is for 10,000 and the car is only worth 3,000. But, the good news is that you do have a second vehicle. Additionally it is really not that hard to get a car loan after bankruptcy. You will pay a higher interest rate, but it is still possible.