Opinions Wanted

[coopersmydog]

I'm racking my brain trying to figure out if I can qualify for a chapter7. I've done the means test online, and it appears I can, but it seems like I'm missing something.

I live in MO.

Income - $75,000/year
Own 2 cars free and clear - $3,000 each or so.
No real assets other than the usual (TV, stereo, clothes, etc.)

So my income is above the median, but when I fill out the expenses it appears that I have no money left to pay creditors. If this is the case, is there any way I can be forced into a chapter 13?

If you need more info to give an opinion, let me know. I'm going to call an attorney tomorrow, but my mind is racing non-stop, so I figured I'd ask.

[justbroke]

You must have a very large mortgage (or 2) on your primary residence!

Especially if you own your cars outright, you lose some of the deductions for them (ownership allowance).

Besides, it doesn't go by your expenses... it goes by what's allowable according to the IRS guidelines. So, somewhere you think you have a certain expense won't be allowable. Especially because you're above median income.

[coopersmydog]

mortgage is 1300/month.

Forgot to mention that we have ~55-60K CC Debt. And the creditors are starting to raise all the rates up to 20%. I'm not late on anything, but it's becoming almost impossible to meet my monthly obligations.

[Lajazz947]

I'm racking my brain trying to figure out if I can qualify for a chapter7. I've done the means test online, and it appears I can, but it seems like I'm missing something.

I live in MO.

Income - $75,000/year
Own 2 cars free and clear - $3,000 each or so.
No real assets other than the usual (TV, stereo, clothes, etc.)

So my income is above the median, but when I fill out the expenses it appears that I have no money left to pay creditors. If this is the case, is there any way I can be forced into a chapter 13?

If you need more info to give an opinion, let me know. I'm going to call an attorney tomorrow, but my mind is racing non-stop, so I figured I'd ask.

I am in the same situation.

Above the median in California, own two cars free and clear but I have a VERY high mortgage.

My income is via 1099 and I control how much I get monthly leaving the rest in the company account so I qualified under the means test.

I am told that the Trustee will examine everything with a fine tooth comb due to my high income and 1099 status as well as what my attorney will argue in NOT an insider payment.

I am starting to stress a little about the 341 which is on 1/12/09 but now that I have filed I am trying to convince myself that it makes no sense to worry.

I was also told that the Trustee could throw me into a 13 if she proves that my monthly income was greater than stated.

The income I take is less than what i make but even with the higher income I am in a 13 with low payments.

Don't know if it helps but I do know that you need to plan and prepare.

Have not used a CC or taken advances in nearly a year and pay everything in cash with every reciept kept or transactions listed on a debit card.

[danaf]

I just responded to your post in the 13 forum. Have you checked what your car exemptions are for your state?...considering you own your cars outright?

[coopersmydog]

It looks like it's $3K, but I'm not sure if I can double it filing jointly or not.

[danaf]

Not being from MO, I'm not sure either. Legalconsumer.com says 1k for a vehicle but not sure how up to date that is. And actually - if it is correct, it looks like MO doesn't give very much at all in the way of exemptions. Only 1k for household items. That is pretty measly. It also says there is a wildcard amount allowed but it doesn't look like it would cover both of your vehicles. Consult a few attorneys BUT DO NOT rush in. That is the worst thing that people do. Instead, figure everything out and plan so things work out to your advantage. Nothing wrong with that. I planned my bk a yr in advance so there were no surprises. If your state exemptions are such that you have too much equity in your cars (ie the extra one) you may need to rethink that unless you are ok with paying the trustee the value of what your exemptions do not cover. Most people do not have that kind of disposable money. I bought a new car a year ahead of my bk with the thought in mind that it would last me for a very long while. And the car payment also helped with the means test and schedules. But I wouldn't recommend doing this on the eve of bk. These things have to be planned.