So Confused!

[melissae]

My husband and I met with a bankruptcy attorney Monday of this week and have an appointment to meet with a second this coming Monday. After meeting with the first attorney, I'm left even more confused and unsure as to what our options really are at this point.

I'm not sure if we're able to file chapter 7 or if we have to go with chapter 13. My worries with chapter 13 is that the judge will take all of the money that's not going to bills for 60 months....

the attorney will not answer any further questions until we retain him and pay in full

He did instruct me to the MEANS test, where I know our income is over the limit for a 3 person family in New York State....however when I fill in all the information, it tells me we would qualify...I'm so confused!!!

[momofthree]

So the only question is if the info you filled in on the means test are all allowable expenses. You may want to consider filing it out and then printing it and taking it to your next attny interview for him to review on the spot. Hopefully you'll be able to get a clearer picture of whether you'll be 7 or 13 at that point.

GL!

[gmk]

Momofthree's advice is an excellent strategy.

My attorney was rather adamant about waiting for our income to drop below the 6 month look back median income test before filing. After waiting a few months, I did the means test for a couple of months forward and for a couple of different scenarios (including home and car allowances, etc.), then emailed my attorney. His paralegal said to bring in the details and they would run the numbers. My numbers and their numbers were very close (after I showed them some of their omissions) so we're filing today!! My attorney is very comfortable with this filing that is over median but passes the means test.

Your (new) attorney should be able to give you a determination of your status/eligibility very quickly by reviewing your homework. Of course the means test gets you started but your income and expenses schedules will also play a major part to play in your eligibility for a 7.

You may need to know how your specific district views the use of certain deductions on the means test. Two items that vary among the districts are: If you own your home can you use your mortgage expense instead of the IRS housing numbers if you are surrendering your home and whether you can claim the IRS standard automobile "ownership" deductions if you don't have auto loans. These two important deductions appear to vary widely among the districts. If unsure, you may want to run them both ways or just wait and see what the attorney says.

Once again, I feel bringing in a copy of your means test calcs is an excellent way to having a consultation based on facts and not conjecture.

Good luck.

[Mensa1]

Keep shopping. Much like when you try on a pair of slacks, just because they zip up doesn't mean that you buy them. They have to feel right when you move in them, just as with a Bk Atty. Especially if you are Ch 13, you are looking at being together for many months to come... so make sure you have the "right fit".