Last month I hit that point many of you can probably relate to: My remaining credit card with credit available on it was cancelled by the bank. No more ability to "rob peter to pay paul," which is what I've been doing for some time. It was a wake up call- bankruptcy seems the only feasible option.
I am working with an attorney and plan to file soon because as of two weeks ago, I was unable to pay 3 of my bills (the calls are startin), and now that I have to pay an attorney, I won"t to be able to pay on any of my unsecured debt in the near future.
Because I am slightly above the state median income (about 5%), we are struggling with my expenses and a Chapter 7 versus Chapter 13.
I pass the means test, but my utility and car expenses are less than the "federally allowed," so my disposable income may require a Chapter 13, but it's very, very close as I do have a mortgage (equity is exempt), and higher than average medical expenses.
My attorney suggested I buy a car. My current car is paid for, but blue book value is only about 1,000, and it's at 127K miles and in need of some repair. However, I was no comfortable with the idea of buying a car, especially with the interest rate I'd need to pay, and the idea of loan reaffirmation. I told him I'd be more comfortable with a Chapter 13 than buying a car.
What we are looking at now if the possibility of increasing my 403b (non profit 401K) contribution. I've been at only 1%, and would increase to only 5%. My employer matches half a percent up to 3%.
Because I want to file soon, I'm wondering if anyone knows if the above might be seen as "abuse"? My lawyer thinks I should try it.
Also, any input about expenses being higher than the "federal allowable" in the means test? For example, I smoke. Yes, I should quit, but quitting isn"t as simple as, say, cancelling a gym membership or shutting off cable. Also, in computing my expenses, my lawyer seems to be going slightly about the "allowable." Is this ever problematic?
If all of the above is deemed reasonable, I will have about $70/month disposable income, and anticipate a Chapt. 7, but, again, it's very close.
Would love any insight! Thanks.
I am working with an attorney and plan to file soon because as of two weeks ago, I was unable to pay 3 of my bills (the calls are startin), and now that I have to pay an attorney, I won"t to be able to pay on any of my unsecured debt in the near future.
Because I am slightly above the state median income (about 5%), we are struggling with my expenses and a Chapter 7 versus Chapter 13.
I pass the means test, but my utility and car expenses are less than the "federally allowed," so my disposable income may require a Chapter 13, but it's very, very close as I do have a mortgage (equity is exempt), and higher than average medical expenses.
My attorney suggested I buy a car. My current car is paid for, but blue book value is only about 1,000, and it's at 127K miles and in need of some repair. However, I was no comfortable with the idea of buying a car, especially with the interest rate I'd need to pay, and the idea of loan reaffirmation. I told him I'd be more comfortable with a Chapter 13 than buying a car.
What we are looking at now if the possibility of increasing my 403b (non profit 401K) contribution. I've been at only 1%, and would increase to only 5%. My employer matches half a percent up to 3%.
Because I want to file soon, I'm wondering if anyone knows if the above might be seen as "abuse"? My lawyer thinks I should try it.
Also, any input about expenses being higher than the "federal allowable" in the means test? For example, I smoke. Yes, I should quit, but quitting isn"t as simple as, say, cancelling a gym membership or shutting off cable. Also, in computing my expenses, my lawyer seems to be going slightly about the "allowable." Is this ever problematic?
If all of the above is deemed reasonable, I will have about $70/month disposable income, and anticipate a Chapt. 7, but, again, it's very close.
Would love any insight! Thanks.