Ok the wife and I had a 2nd meeting with our lawyer yesterday. We had a really productive meeting and along with all the help and information from this forum are at ease alot more.
No more payments to MIL until after discharge.
It is acceptable in this district to include mortgage payment $1656 without scrutiny from the TT or UST even though we plan on surrendering on both the Means and Schedule J.
College Tuition Payments Not allowed on Means Test or Schedule J.
We will NOT Re-affirm Home since we are upside down.
2nd Home in Texas we will let go also.
401K Contrubutions and Loan re-payment not allowed in Means or on any of the Ch.7 Schedules. He said we can continue to contribute and also repay the loan but neither would figure into the filing. He said we could stop payments and convert the loan to an asset but urged us not to due to the tax ramifications.
He said we could use our 2009 Fed and State returns on allowable expenses otherwise be prepared for the TT and UST to ask for the $$$. He said we could use it on the following: 6 months of Food, 2months Utilities, Auto Repairs, 2months Vehicle Insurance and required college tuition. He said the tuition may raise an eyebrow but he believes the TT and UST will only want to see the receipt. I asked him about purchasing grocery store gift cards and he told me not to do it at this time. He says he is in a legal dispute right now with the UST over this issue and he doesn't need another example.
I aksed him about TOC and Presumption of Abuse. He told us we had nothing to worry about unless we were trrying to hide something, we aren't as we have nothing worth hiding.
He did however tell us it was a sure bet that the UST would file the Presumption of Abuse due to our $140k total income this year. Said the UST would be doing his job to give more time to scrutinize or case. He says once the UST realizes that our income has dropped 50% that he will back off. Really just basically told us we have the triggers for the Presumption of Abuse but have the evidence to refute it. Said if he thought there was any chance of a TOC claim that he himself wouldn't take the case.
All in all it went really well. The lawyer said we look ok for a Ch.7 but there was always a chance something else could happen. Told us to go home and enjoy the holidays and we will file the first week of April. Said it was good that I was informed and had many questions and he isn't afraid to fight if we have to. Oh and they use the Best Case Bankruptcy software so thanks to MSbklawyer for the link !!
Sorry for the long winded post.
Meatstick
No more payments to MIL until after discharge.
It is acceptable in this district to include mortgage payment $1656 without scrutiny from the TT or UST even though we plan on surrendering on both the Means and Schedule J.
College Tuition Payments Not allowed on Means Test or Schedule J.
We will NOT Re-affirm Home since we are upside down.
2nd Home in Texas we will let go also.
401K Contrubutions and Loan re-payment not allowed in Means or on any of the Ch.7 Schedules. He said we can continue to contribute and also repay the loan but neither would figure into the filing. He said we could stop payments and convert the loan to an asset but urged us not to due to the tax ramifications.
He said we could use our 2009 Fed and State returns on allowable expenses otherwise be prepared for the TT and UST to ask for the $$$. He said we could use it on the following: 6 months of Food, 2months Utilities, Auto Repairs, 2months Vehicle Insurance and required college tuition. He said the tuition may raise an eyebrow but he believes the TT and UST will only want to see the receipt. I asked him about purchasing grocery store gift cards and he told me not to do it at this time. He says he is in a legal dispute right now with the UST over this issue and he doesn't need another example.
I aksed him about TOC and Presumption of Abuse. He told us we had nothing to worry about unless we were trrying to hide something, we aren't as we have nothing worth hiding.
He did however tell us it was a sure bet that the UST would file the Presumption of Abuse due to our $140k total income this year. Said the UST would be doing his job to give more time to scrutinize or case. He says once the UST realizes that our income has dropped 50% that he will back off. Really just basically told us we have the triggers for the Presumption of Abuse but have the evidence to refute it. Said if he thought there was any chance of a TOC claim that he himself wouldn't take the case.All in all it went really well. The lawyer said we look ok for a Ch.7 but there was always a chance something else could happen. Told us to go home and enjoy the holidays and we will file the first week of April. Said it was good that I was informed and had many questions and he isn't afraid to fight if we have to. Oh and they use the Best Case Bankruptcy software so thanks to MSbklawyer for the link !!
Sorry for the long winded post.
Meatstick
Bankruptcy Wizard
There's also another Bankruptcy software product called Bankrupter. The Bankrupter software is free, but each case you file using it... costs so much money. I like Best Case better.
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