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Had my first BK consult last night

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    #1

    Had my first BK consult last night

    Met with a BK atty last night and after laying out our situation he made the recommendation that I had been expecting; that we file a CH7. He said we could discharge our $90K CC debt and keep the house and cars if we want. Went home and talked it over with my beautiful wife and although we agree that the CH7 is the right move reality is still setting in so I think it will take a little time for us to pull the trigger (although I am sure a month of calls from the CCs will be motivation enough).

    He said our case is a bit sticky due to my high income in the previous three years relative to my now significantly reduced income. He said it would take work to convince a Trustee to accept things as-is. The quoted price was $3,000 versus the normal $2,500 due to this complication. I am going to go meet with another attorney next week for a second opinion and make sure the price is in line. Can anyone comment on whether this price and the rationale for it seem accurate for Central NJ?
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    #2
    Wow, we're in a very similar situation. Good luck.
    Ch. 7
    Filed: 05/07/2009
    341: 07/01/2009
    Discharged AND closed: 09/29/2009

    Comment

      #3
      Originally posted by Humonese View Post
      Wow, we're in a very similar situation.
      I guess so. We even have the same number of posts

      Comment

        #4
        LOL.

        Mine didn't say anything about income changes. I went from $67k year to the Unemployment equivalent of $27k per year (6 months of it)...but that ends in 7 weeks and I won't be making much after that. Ours just said $2,500.
        Ch. 7
        Filed: 05/07/2009
        341: 07/01/2009
        Discharged AND closed: 09/29/2009

        Comment

          #5
          Prices vary by area - I got a couple quotes for around 900-1200, but hired the guy who said 1800. We have some complications due to moving to a different state, two homes that will be foreclosed by the time we file, large tax refunds, and some others - it seemed like he was the most honest about what it would actually cost.
          BKForum Blog: The Journey

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          Comment

            #6
            His concern was I have earned $110-125K in each of the last three years and now dipped to what is annualizing at $98K for 2009. The prior year figures are just from memory so I need to go into my files for the exact numbers. I think his concern is proving that my income has permanently decreased. He need only point out that I work in financial services, 50% of my income is commission based and the S&P is down 40% over the same period.

            Comment

              #7
              Originally posted by phigment View Post
              His concern was I have earned $110-125K in each of the last three years and now dipped to what is annualizing at $98K for 2009. The prior year figures are just from memory so I need to go into my files for the exact numbers. I think his concern is proving that my income has permanently decreased. He need only point out that I work in financial services, 50% of my income is commission based and the S&P is down 40% over the same period.
              Give him that last sentence and tell him you want a $500 discount for "uncomplicating" it.
              Ch. 7
              Filed: 05/07/2009
              341: 07/01/2009
              Discharged AND closed: 09/29/2009

              Comment

                #8
                I am wondering why going from a higher income to a little bit of a lessor income would complicate things? We have a similar situation where my husband took a 20k paycut in order to not travel anymore and be closer to home (old job had a really long commute). And myself, I have a regular full time job, but have always had a temporary contract job for the last few years, but dried up late last year and so I have lost about 15-20k in income myself. But if you look at the last 6 months of our income, it has been the same...however if you look at our tax returns for 2007 & 2006, our income was significantly higher.

                We are meeting with an attorney next week and now I am wondering if will also have issues with our income decreasing. I mean jeeze...people are losing jobs left and right, going from 100k plus jobs to unemployment, so how can the trustee fault you for that!

                Comment

                  #9
                  I think the attorney was feeding you a line about the reduced income.

                  That's the reason why most of us are here - my income is not even 30% of what it was in 2006 and 2007.

                  The filing has nothing to do with your current income in comparison of a few years ago, except that you no longer have the income to pay your debt.
                  Filed CH 7 9/30/2008
                  Discharged Jan 5, 2009! Closed Jan 18, 2009
                  I am not an attorney. None of my advice is legal advice in any way..

                  Comment

                    #10
                    I agree with the last couple of posts. That lawyer is using that "income complication" as an excuse to charge you more. The means tests looks at your last 6 months of income, and your schedules reflect your current income (and any changes going forward). Trustee isn't going to care what you made three years ago
                    Filed Ch 7 - 07/10/08
                    341 Meeting - 08/13/08
                    DISCHARGED! - 10/15/08
                    CLOSED - 10/20/08

                    Comment

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