Does this look like a seven or a thirteen?

[Crozier]

If I may ask, with 1.0 m in debt, what type of income did you claim. My base, annually, is $120K. However, overtime, can push it to $145 / $150. Even though that soundslike a lot, losing my wife's income ($60K to $80K), we are deficit spending month after month. I know you can only offer an opinion, so, I guess my question is: Do I make too much for a 7, or will a monthly deficit of nearly $2K, and a decrease in the availability in o/t, help my cause? I am just nervously venting. Thanks in advance.

VC

[Crozier]

StartingOver08

If I may ask, with 1.0 m in debt, what type of income did you claim. My base, annually, is $120K. However, overtime, can push it to $145 / $150. Even though that sounds like a lot, after losing my wife's income ($60K to $80K), we are deficit spending month after month. I know you can only offer an opinion, so, I guess my question is: Do I make too much for a 7, or will a monthly deficit of nearly $2K, and a decrease in the availability in o/t, help my cause? I am just nervously venting. Thanks in advance.

[StartingOver08]

I had to provide 4 yrs of tax returns. I filed BK 8/2008 so the tax returns I provided were 2004, 2005, 2006, 2007. I also had to provide YTD income for 2008. My income averaged about $290k/yr (gross) until 2007 which was about $160k. 2008 was even lower I had to add my husband's income IN ADDITION to my income because he is in the household but does not contribute to hh expenses. That was an issue with the UST. However, we were able to back out his income as an expense because we were able to prove none of his income was used for hh expenses. This is why I needed an excellent attorney. If you have over median income, the UST will be interested.

If your monthly debt payments exceed your income, you should have no issue keeping the 7. I was negative about $500/mth with allowable expenses. With $2k negative per month, you should not have a problem.

[kornellred]

The Feds are not going to let you walk away from that much debt scott-free while making a mere $120K per year. Not no way, not no how. Good luck trying!

[2manybills]

It's all relative to allowable expenses in your district. In the Central District of CA, $120K is sadly around median nowadays with the high cost of living. Apartments are renting for $2500 a month for two bedrooms, gas is the probably the highest in the nation with all of the emissions, etc. There are many people on this site over median in So. Cal. that were able to sucessfully get discharged in Chapter 7.

[Crozier]

I was hoping someone from Cali could relate. Our cost of living is ridiculous. Crappy homes in crappier areas were going for $400K, two years ago. Only now have they settled back down to a relatively reasonable amount. Anyways, thanks for the info. I have been researching the personal property exemptions, the wildcard, and the homestead exemptions. Sounds tricky, but interesting.

By the way, Consumer Credit Counseling Service of Atlanta (on line) was very easy and painless. $50 bucks, they accept debit cards. Nice easy format. I just finished. It took an hour or so. Just have your numbers available.