Should I be skeptical?

[Llelxon]

My wife and I met with an attorney for a consultation today regarding filing bk. I have not spent a tremendous amount of time on here, but have been trying to do some research on bk. I put together a list of my unsecured and secured debts and my assets. He looked at the list and said he would recommend filing. I make of the median for our state and said I was concerned about the means test and he said it's not that hard to pass. The only thing he raised a concern was that I may lose my tax refund if I file this month. I selected the law firm because one of their attorneys is a trustee for the area and I thought that may be helpful

We have a lot (80+) in unsecured debt, but want to keep our house and cars, one paid for but not worth a lot and one under loan. Anyone else have a similar experience or care to share any thoughts?

[JoeBankrupt33]

What state are you in? How much over median are you?

[Llelxon]

I am in Indiana. Based on my base salary over the past 6 months, I'm not over by more than 5k. I get a bonus in March that puts me over on average 15k for the year. We plan on reaffirming our house and the payment is double the average listed for the state.

[SuzieBK]

We're in Ohio and were over the median by a good amount, had $125K in cc debt, and one car with a payment and one car we owned out-right. Oh, like you, a mortgage much higher than the state average. In the end, we did a buy-back of the non-exempt amount of the car we owned out-right, paid a couple of hundred dollars for some cash that the trustee called non-exempt (it wasn't, but by that point we were happy to finish things up), and that was it. Reaffirmed the house, the HELOC, and the car loan and we were discharged on Tuesday. So, I would go with what your lawyer is saying.

[justplaintired]

We are in Indiana, however we were below median considerably. If I understand correctly you are over by $5k this year and next year you are over by $15K? My suggestion is not waiting if you will be over that much next year. Losing your tax check is better then being thrown into a C13 due to increase in income. Another thing, if you are that far over on the allowable for housing it's doubtful a judge will agree to a reaffirmation. As long as you stay current on your house a ride thru maybe your only choice. We did a ride thru. We had full intentions of reaffirming but didn't and if you read on this forum you will find the advantages and disadvantages of both. All the same rules apply on a ride thru, as long as we pay our house payment, which we always have, we still hold the deed, sorta anyway since we owe, but they won't foreclose and they accept our payments without a problem. I hope and pray we can stay in this house, but as you well know right now Indiana's not getting alot of new work for people and if something happens we can walk away.

[klandsb]

SuzieBK.... I just dont understand with you being over the median by a good amount that you could qualify for Chapter 7... Everything on here sts "anyone" over median w/disposible income is forced into a Chapter 13.. I want a 7 but my lawyer said its not possible. I am thinking its because they want u to pay more and they make more... I have been to 3 attorneys and they all say Chapter 13...

[HHM]

SuzieBK.... I just dont understand with you being over the median by a good amount that you could qualify for Chapter 7... Everything on here sts "anyone" over median w/disposible income is forced into a Chapter 13.. I want a 7 but my lawyer said its not possible. I am thinking its because they want u to pay more and they make more... I have been to 3 attorneys and they all say Chapter 13...

If you are over median, the ability to pass the means tests comes down to the amount of secured debt. I know, it is somewhat counter-intuitive and sometimes just plain wrong. A person making 70K a year with a $3,000 mortgage
will pass means even though they are over median, while a person making $55,000 and renting for $1,200 per month, will not pass (even though they are only slightly over).

[klandsb]

HHM.... Yes, I am a single parent and am very lucky to have the job I have but it is over the median and overtime is both forced & non forced but I have been putting in my time trying to make it all work. So now, here I am looking at 5 yrs of pmts on approx $38,000 credit card debt that would take me 100 yrs to pay off .. Yes, I have looked at other options but am mentally exhausted and see no better way then bk for me..
It just seems unfair that if I owed $125,000 credit card debt I might get a chapter 7 if I am understanding u correctly .... Makes no sense

[StartingOver08]

I think HHM meant to say "secured" debt - that is the example he gave.

Check more attorney's - Liz had to go to 6 attorney's (I think) in California before she found one that would file a Ch 7 instead of a Ch 13 ...and she has been successfully discharged.

Have you done the means test yourself? Have you figured out your budget (your actual budget including every expense)?

I was substantially over median and was able to get a Ch 7 because of my secured debt that I surrendered in my BK

[HHM]

Correct, I meant "secured" debt.