might be forced into a Chapter 7

[frustrated7]

Despite the fact that we were told during a free consult with a BK attorney that we should be able to file Chapter 7 BK if we file immediately, I am really concerned that we will end up forced into a Chapter 13. I don't want to be in a Chapter 13, partly because I will get slammed with student loan interest and will still have that to deal with when I am done with the 13. I was looking at the expense list in the packet that the attorney sent me, and even though we pass the means test that I take online, the packet we have to fill out tells us that we cannot spend more than a certain amount in each category and doesn't even give a section for household cleaning items or hygiene products or even OTC medications. According to the packet we were sent, we would have too much disposable income to qualify for a Chapter 7, which is total crap, because we barely scrape by paycheck to paycheck and we have cut our expenses like crazy to even manage that. Anyways, I'm sitting here wondering what we should do, because a Chapter 7 is best for us, but I will be super ticked if we pay the attorney for a Chapter 7and then can't file it without it getting flipped to a Chapter 13. Has anyone encountered this problem before? Thanks.

[floridian]

im in the same boat...

[frustrated7]

The thing with us is that we have (barely) below median income for the past six months. Also, by IRS standards for expenses, we pass the median test. But according to the packet the attorney gave us to fill out, which has numbers far below the IRS numbers, we have too much disposable income. I think I'm going to call the attorney tomorrow and ask about this. I want to file a Chapter 7 if at all possible, but I will be super ticked if we get forced into a Chapter 13, and I don't want any last minute surprises. We don't really have any disposable income, and it will be even worse here in a couple of months, since all of my student loans end the grace period and have to be paid on. This is so frustrating. I just want this mess to be over.

[danaf]

Call the attorney. You know the IRS standards, bring it up. See what he says. You might be better off filing pro-se since you are below median. I don't suggest it to many people because not many can deal with it. I personally could not deal with sub-standard bk lawyers - it's a mill deal for them. The other thing. If you were to wait until your grace period runs out on your student loans, then you'd definitely have no disposable and that would be better for your petition since they can be factored into your monthly expenditures.

[catleg]

I think a good way to measure the professionalism of a lawyer is when he gives you forms to fill out, his own forms, if he has any numbers on there related to bankruptcy law, do they match the correct numbers?

For example, the presumed non dischargability of "luxury items" is $550 per one creditor within the past 90 days, or $825 in cash advances within 70 days. For ch13 the unsecured debt limit is 336,900. These get adjusted every 3 years, last time was 4/1/07. If they can't be bothered to fix their paperwork once every three years they're a clown, IMHO.