What if BK is not do-able for you

[maxwell18]

Just wondering if anybody out there has reseached the bk route chap 7/13 and feel that is not right for you? I have a means test in draft from my lawyer, but I feel it should be plused up someway or the other. I don't thing I can make on whats left each month. What I was thing is stop playing my CC let them repo my boat and motorhome and then I know I will have to pay whats left between what I owe and what they sell them for. Hoping to get the cc companies to lower the balances and interest rates. Can a lawyer do things like this. Is this a another way of debt management?
Thanks

[pcn]

What if in a 7 you gave back the boat and motor home, AND erased all your unsecured debt? Wouldn't that be even better? Or, in a 13 you continued to pay on the motor home and boat, and some of the unsecured debt was removed?

[frogger]

Just wondering if anybody out there has reseached the bk route chap 7/13 and feel that is not right for you?

I felt that way for many years, that a bk was not right for me. Once you decide that it is the proper business decision, it gets better. Sounds like you are struggling with the thought of bk, just like I did.

Good luck.

[maxwell18]

reply

Thanks for the info. I cannot file chap 7 too much income.

[maxwell18]

hey mr frogger

just wondering after you get started with your chap 13 how much money did you get each month or keep? is it enough to live a normal life, or do really have to live each day at time? i know everybody is different, what bothers me is the standard exemptions from irs and having to mold your life standard into to it. do they even think about whats left after you make your payments?
thanks

[JRScott]

Thanks for the info. I cannot file chap 7 too much income.

Being over the median does not necessarily disqualify you from a chapter 7 you need to fill out the entire means test. However if it is borderline you'll need a lawyer willing to fight for you.

[frogger]

just wondering after you get started with your chap 13 how much money did you get each month or keep? is it enough to live a normal life, or do really have to live each day at time? i know everybody is different, what bothers me is the standard exemptions from irs and having to mold your life standard into to it. do they even think about whats left after you make your payments?
thanks

I'm not doing a 13, I'm doing a 7. The standard exemptions and means test were not a factor in mine due to the bulk of my income/expenses being business income.

[maxwell18]

reply help frogger

I have been thinking and reading all the great information on this site. I am hung up on how much money would I have in my pockets after filing chap 13 and all the exemptions are figured and bills paid out, what money is left for me to spend for me. Let me make sure I got this right. You take all your income figure chap13 pay all the bills that you kept and then the dmi is used to pay the court to be divied out to the unsecured debts? What money is left for my daily life?
Thanks

[viking64]

Remember that the IRS figures include pretty much everything an individual needs (key word) like clothing, medical, car, groceries, etc. You do get to include entertainment expenses (reasonable - say DVD rentals, a movie or two each month, not a broadway show each month), cable, internet, cell phone. They key is reasonable. Maybe not HBO and Showtime, but CNN and USA should be doable.

Maybe not an unlimited text, unlimited minutes cell plan, but a decent phone with reasonable minutes. If you don't have a home phone, maybe your mobile could be a little more.

Maybe no daily Starbucks latte's, but if you shop at Costco, you might be able to get Starbucks beans with your grocery budget.

If any of your monthly expenses are out of line, you can still argue for them if you can defend them (such as higher than standard for medical, need for a higher cell plan because of work requirements, maybe even a higher clothing budget for work requirements).

At the end of the day, if you're having trouble with your bills, a lifestyle adjustment is the only sane choice - whether through BK, a credit repayment plan, cutting back, etc.

Ideally, if you could pay your bills while cutting back on your own without court supervision, that would be best. If not, then the a lawyer can help you with a reasonable budget that still allows you to have a well-rounded life. And the good news is that in a guaranteed max of 5 years, you're debt free and can do whatever you want with your money.