BK 7 or Judgment proof

[OhioFiler]

You're upside down by $100,000 on your home and upside down on your cars. I'd go with the Chapter 7 and after you're discharged live in the house rent-free for a year while the foreclosure process winds its way through the system. I'd let at least one of those cars go back to the lender as well.

Within a year you're completely debt free and most likely could buy a house at current market pricing.

[rmab46]

means

If you are under the means for your area expenses don't come into bearing.

wWhat do you mean the expensives don't come into bearing? I know they only use the VA disability payments toward the means test and I fall well below the line so I do meet the criteria for BK7. I also know they then add in the SSD toward what I receive per month.

My total expenses including, mortgage (I am keeping the house), the 2 cars (I am keeping them), child support, food, electricity, gas, gas for the cars, insurance for the cars, ect. I come up to almost exactly what I recieve each month which leaves me almost nothing for emergencies ect. Now my wife who is not part of the BK7 works part time but she has been told that her job is at risk due to cut backs. She only makes about $550.00 per month after taxes.

That is what I am worrried about. The judge making me pay the difference and leaving me with nothing to fall back on in case of emergencies.

Keep in mind I estimated my costs per month. My checking account shows I spent less for gas, a bit less for food and estimated the other stuff. The reason is we have not had the money to buy all the food we need and for the gas in the cars and that is why we are filing BK7

Now, what do you mean expenses don't matter?

[Lizabth]

That's not true. If your schedule I & J show disposable income even if you are under the median, the trustee can still require dismissal of your 7 or conversion to a chapter 13.

I was just told by my attorney this morning that you CAN"T be forced into a 13 if you are under the median income, even if you show disposable income after the schedules?!? Who wouldn't have disposable income, anyway, if they'd gotten rid of lots of debt thru 7?

[kenshirley]

And that's what I was told. But I also think there is such a thing as abuse if you have lots of money left over.
I am not sure.
Our 341 is April 24th so I guess we will find out.

[Lizabth]

Dumbness on me!

Well, I've spent so much time online looking at all this crap, I made myself dizzy. I missed a very important bit on the J, namely the 'installment' question(number 13)...LOL. That sure makes a difference. Time for a research break!

[floridian]

That's not true. If your schedule I & J show disposable income even if you are under the median, the trustee can still require dismissal of your 7 or conversion to a chapter 13.

how true... its hard to escape the excess DMI, at least in florida..