Incoming Bills after Filing

[Anon]

[SMinGA]

You won't have to file until someone takes legal action. Even once they do, you will have a minimum of a few weeks to work with. If you're now ~40 days past due then you could easily have 3-6 months, maybe more. I think the odds of anyone filing legal action in 3 months is slim, and 6 months unlikely.

If you have to file before his treatment is finished, then finding some way to fund a 13 will buy you time.

[Anon]

I'm new at this. Are you saying that I pay a 13 and then if he has complications later and the bills come again I could use that situation to have the 13 dismissed then changed to a 7 and it would be the same bk? Here's another question: do I have the choice to file a 13 even if I qualify for a 7? If I can make the choice then this might be the way to go.

[StartingOver08]

Also, you don't necessarily have to actually file for the business.

I took care of the personal liability for my business debt in my personal BK. Then closed the business.

Most of the time, in a small business, this is sufficient and you don't need to file a formal business BK. Take some time to review the threads in this site ...you will see lots of us that had small businesses and were able to just file a personal BK. Ask the attorney you are meeting with for details too.

The biggest mistake people make here is filing too quickly. Take the time to properly plan. You will see that there are those on the board that waited years to file in order to properly plan the BK.

[Anon]

I feel so much better now. Thank you! I will meet with attorney and run all of this by him. One of the 3 trustees in our area works at his law firm and he said he could run all the scenarios by him to see what would be best for me. That is a HUGE insight into how tt's work and I would not been able to get that elsewhere and also why my attorney costs so much.

As for my business, well over 50% of my personal debt is for my business so that is why I assumed it would have to close. But maybe it does not.

I am going to go home tonight and just not worry about it for a few days because I am TIRED.

[SMinGA]

If you can in some way fund a plan payment - you can file a ch. 13.

It might mean needing to keep some discretionary spending low, sacrificing a bit to make it happen. Like it would probably not be unreasonable for a 2 person household (don't know if you have kids) to claim $75/mo for clothing and $50 a month for entertainment and $50/mo for personal care/personal needs supplies. If that were to put you at a $0 DMI - you'd be a clear ch. 7. But if you could manage to cut back in each of those areas, perhaps taking $20 from each category to manage a $60/mo ch. 13 payment, you could probably get confirmed in a ch. 13.

A year down the road, tell your atty that you just can't keep doing it and have the atty dismiss. If/when you re-filed as a ch. 7 you should have a pretty simple case.

The one downside - with a low plan payment your atty would probably want you to pay upfront his/her fees. And your atty might try to push you for a ch. 7. You could simply explain you'd prefer to make some payment effort, and save the ch. 7 option for later.

I'm new at this. Are you saying that I pay a 13 and then if he has complications later and the bills come again I could use that situation to have the 13 dismissed then changed to a 7 and it would be the same bk? Here's another question: do I have the choice to file a 13 even if I qualify for a 7? If I can make the choice then this might be the way to go.

[Anon]

Wow, that is brilliant! Seriously! That's where I feel most comfortable (a 13) because I want to keep an option open for the next 2-3 years for a 7 if need be AND I need relief right now too. This may be the best option. I'd happily pay the attorney's fees upfront if that is the case. Just the 2 of us, no kids.

What exactly does the TT charge? I know in my state it's about 8% or so, but what is the percentage based upon? How much I pay back?

[SMinGA]

My understanding is that its just district dependent. It is NOT based on your case.

If your district is 8%, it means of all you pay in 8% goes to the trustee. So for every $100 you paid in, $8 would go to the trustee (he/she gets their cut first) and $92 to creditors.

I hear some are as high as 10%. I'm rather fortunate - only 5.4% for me.

Wow, that is brilliant! Seriously! That's where I feel most comfortable (a 13) because I want to keep an option open for the next 2-3 years for a 7 if need be AND I need relief right now too. This may be the best option. I'd happily pay the attorney's fees upfront if that is the case. Just the 2 of us, no kids.

What exactly does the TT charge? I know in my state it's about 8% or so, but what is the percentage based upon? How much I pay back?