What should I do?

[newone]

Hi everyone! As you can see, I'm new here today and so thankful to have found this place.

My story:

DH & I are approx 50 k in cc debt and trying to decide what to do as our ship is sinking fast. We are current on everything right now.

We both are employed full time and make too much money for ch 7.

Here are some questions I have that no amount of googling can seem to find a specific answer for:

1. We currently have a truck (financed) and a boat (financed) that we want to keep. My car is on its last legs-- a 2001 taurus with multiple problems.
I got preapproved from Nissan and Chrysler for a new vehicle. Is it against the rules to purchase and finance a new car right before filing?

2. Our son lives with us (24) and has NO income. Is he still considered part of our household? We didn't claim him on our taxes last year b/c he had income. This year, he has NONE and is planning on going to school in the fall.

3. I also have taken some cash advances recently from cards. Is the look back period 70 days or 6 months?

The other major concern I have is if we have to pay ch 13 payments with p/r deduction as we both work for a municipality. I know they can't terminate us for filing, but its not something I want them to know about either. I did call a local attorney and they told me its not required, but that part really really scares me. I'm in MO, eastern district.

Thanks in advance for all your help and have a great day!!

[newone]

One more thing, I forgot. When I do the means test, if I include the current secured payments (truck and boat) we fail, if I do it and include the truck, boat and potential new car payment, we qualify for 7. I'm so confused.

[keepmine]

One more thing, I forgot. When I do the means test, if I include the current secured payments (truck and boat) we fail, if I do it and include the truck, boat and potential new car payment, we qualify for 7. I'm so confused.

This is why we suggest you speak with more than 1 bk lawyer.
If you can take out a loan for a new car and it'll raise your expenses enough to qualify for a 7 then, go for it.
You need to put at least 70 days between you and a cash advance. After 70 days, the creditor loses the presumption of abuse but, the more time you can put between the advance and filing the better off you are.
How much was the cash advance?
Once bk is the course you'll take, stop paying all debt you wish to discharge and use that money for living expenses.

[newone]

This is why we suggest you speak with more than 1 bk lawyer.
If you can take out a loan for a new car and it'll raise your expenses enough to qualify for a 7 then, go for it.
You need to put at least 70 days between you and a cash advance. After 70 days, the creditor loses the presumption of abuse but, the more time you can put between the advance and filing the better off you are.
How much was the cash advance?
Once bk is the course you'll take, stop paying all debt you wish to discharge and use that money for living expenses.

Thank you so much! So I should go for the car? The cash advances total $2900 and were done a couple weeks ago.

If I pay those and nothing else will it look like preferential payments?

Any ideas on whether or not I can count DS as part of the family?

Good Lord I am so depressed. I never ever want another credit card.

[AngelinaCatHub]

Thank you so much! So I should go for the car? The cash advances total $2900 and were done a couple weeks ago.

If I pay those and nothing else will it look like preferential payments?

Any ideas on whether or not I can count DS as part of the family?

Good Lord I am so depressed. I never ever want another credit card.

Yes if you pay one above the other it is preferential. By the choice that you would prefer to pay them is self defining. As far as son being counted, he would not just because he lives with you and does not work (?). Only if he is in college or in some way disabled, can you claim him as dependent and only until he is 25. When is his birthday?

I would give at least 90 days from that cash advance and stop using the cards immediately for any reason. 'Hub

[zpbk13]

Our son lived at home with us until very recently and then my 17 year old sister moved in. Our son worked very little and my sis is a college student and no income to speak of so our attorney told us we are a household of 3. Hope that helps.

Regarding the car. We were approved through GMAC before credit tanked and our attorney said it was okay to purchase the vehicle which helps us qualify for a 7. Hope that helps you too. We actually thought we were going to be in a 13 but our attorney assures us we just squeak by with the 7 so that is a relief.

I cannot stress how important it to find the right attorney. At one consultation, the attorney told us we made "so much money" because I work for a large firm that we were definitely in a 100% pay back plan and our payments were going to be around $1300 per month and we had to put our vehicles in the plan. I almost broke down and cried in his office because there is no way we could afford payments like that.

The attorney we eventually retained said initially she thought our payments would be about $375 per month and we definitely did NOT have to put our vehicles in the plan. After we provided all financial docs to her, she emailed me with the news that we qualifed for a 7! We were thrilled. She is worth every penny she is charging us! So definitely shop around.

[OhioFiler]

I'd buy a Nissan long before I'd buy a Chrysler unless you want to be saying the same thing in 8 years about this car as you are your Ford Taurus.

[whipster1]

The advances will not be dischargeable if you file anytime soon, your attorney could work a deal out to pay those amounts back in a seven. The boat is considered a luxury item unless you are a fishing guide

[OhioFiler]

The advances will not be dischargeable if you file anytime soon, your attorney could work a deal out to pay those amounts back in a seven. The boat is considered a luxury item unless you are a fishing guide

Or he lives on an island!

[newone]

No, not an island or a fishing guide, just a weekend fisherman

After rerunning the means test using the one I found on this site, we are still way over where we need to be, even with a car payment. Not sure what I was doing wrong, but I've redid it now 4 times and I get the same thing every time.

I know and understand that a ch 13 isn't the end of the world. I just really really don't want our employer to find out about it. At least with a 13 we get to keep all secured property correct?

[falken]

No, not an island or a fishing guide, just a weekend fisherman

After rerunning the means test using the one I found on this site, we are still way over where we need to be, even with a car payment. Not sure what I was doing wrong, but I've redid it now 4 times and I get the same thing every time.

I know and understand that a ch 13 isn't the end of the world. I just really really don't want our employer to find out about it. At least with a 13 we get to keep all secured property correct?

Some districts require payroll deduction, some don't. If they do not then you can make direct payments or perhaps setup a ACH debit with the trustee and it will come out of your bank account monthly (which is what I did).

You can keep all your secured property as long as you can afford it. To keep my the boat you will need to be in a 100% payback plan on unsecured (roughly $833/mo, based on 50k), OR be able to excempt it which you may be able to do depending on what your states excemptions are and what other property you have.