Can't afford chapter 13 make too much for 7

[dukedog]

On my second consultation today and I was told that I make too much to file for Chapter 7 and not enof to make the chapter 13 repayments.

The first guy said he felt confident I could get Chapter 7 but didnt do a schedule J on me.

Anyone have any recomendation on a lawyer in N Georgia?

[nc73]

My lawyer said the same thing and I was fine. I didn't worry about what shed j might say. I took his word for it and it worked out just fine. I did the calculations myself beforehand...

[JSchrader]

Unfortunately I can't speak to whether you are eligible for Chapter 7. It sounds like you are concerned about the costs of Bankruptcy, though. Often times, a Chapter 13 case will cost less up front because the attorney is willing to spread his or her fee over the entire chapter 13 plan.

Also, there are ways that you can save money to file for bankruptcy that you might not have considered. I wrote a blog post about the subject yesterday. I apparently can't post a link, but you can find it by searching for "myth #3 you can't afford a bankruptcy attorney" on Google.

Here are the highlights:
Good luck.

[tobee43]

please do not be mislead...like the thread above me is leading you to.

don't go to one or two attys....go to 10 if you must....find the one that will work with you.

we did not pass the means test and our chapter 7 went just fine. you need to find the right atty to work WITH you and FOR you...they are out there...but there are many MORE lousy ones than good ones. so you'll have to make an effort to find the correct fit for your needs.

it takes determination and tons of leg work...but do it. a chapter 13 has you by the neck for 3-5 years...and good if you are certain about your future financial situation during that time period...and that may be what's good for you. or....your pay got cut...your spouse just lost their job and now your uncertain about your income...so maybe a chapter 7 may be best.....my point...


is each case is different...requires different views and strategy in the way the situation is handled in your best interest.......and YOU are your ONE and ONLY advocate. do what is best for you and don't do it unless you are totally certain...and i'm not saying comfortable, because nothing about this process is "comfortable". but you should at the least have comfort zone with the person representing your interest in this matter........see more atty's.

best of luck!!

[JSchrader]

I'm sorry that my post seemed misleading. My only point was to offer suggestions on how the original poster might be able to afford bankruptcy. I certainly can't tell whether he would be better off in Chapter 7 or 13.

Tobee is right that it often pays to look around. Be careful though. Don't just hire the attorney that tells you what you want to hear. If you talk to enough attorneys, one of them will tell you that you are eligible for Chapter 7. Don't believe him or he just because of that. Hire the attorney that seems most competent.

Good luck.

[tobee43]

jschrader...my point to the OP is that there is usually NO quick fix to this situation. and when your post about your blog possibly suggesting what????

post it in an open forum right here... if you really have some suggestions that may be helpful to the OP...

almost ALL atty's take monthly payments until they are paid. so everyone can usually afford to find many that are willing to work with their clients and in their clients best interest. after all....they are bankruptcy atty's???

you also make a most valid point about those atty's that talk a big talk but trip when it comes to the big walk. we were tired of loud mouth know it alls.....went with a brand spankin new cutie fresh out of harvard law...green as an unripe tomato and smart as they come. quiet, smart, and a hook...(actually showed up for the 341 with his zipper down and wrinkled suit...looking more like a frat boy coming from a good party). but boy...could he do his job!



duke...don't allow anyone to fear you into anything. you will find the right one ...i promise.

[JSchrader]

tobee
Sorry if I'm stepping on toes. Since the OP had concerns about affording Chapter 13 in his post title, I thought advice on that issue might be helpful. For what it is worth, I did copy the part of my blog post that was relevant to this topic into the forum post.

[tobee43]

o..no toes stepped on here jschrader...or offense taken.

it's just many times people come on this site and attempt to sell or scam people into solutions that are not quite on the up and up....so it's more of a defense mechanism ...(i'm not a big advocate of chapter 13's myself)...but that's just personal opinion and you know what they say about those.

i'm glad you posted on the other forum...i didn't see it, but if it helps someone that's great!

[JSchrader]

Tobee
I certainly understand. For what it is worth, I prefer Chapter 7 in most situations too. What works for one person doesn't always work for all though.

[tobee43]

Tobee
I certainly understand. For what it is worth, I prefer Chapter 7 in most situations too. What works for one person doesn't always work for all though.

that's the point here....that's why the OP should find good legal counsel and if 13 is best for them...so be it.

however, it does not make very much sense that the OP can't afford a 13 according to whom ever he spoke to, when the payments are worked into the payout agreement within the plan. it is clear to me, at least the OP was misinformed by this firm and should seek other advise.

[dukedog]

When I posted I was a little stressed and I did not explain myself that well. I was told that I make too much money (according to my schedule J) to file Chapter 7. When he worked the payment estimate for 13, it showed that I could not afford the CHP 13 payments required. He basically told me to come see him when the garnish wages. I get the feeling he may have been just a drive through BK lawer. I do make above the standard median, but I also have lost nearly $30000 in income from what it was in 2008. Survived two years without it, now I am defeated. Also when he looked at my schedule J, he crossed out everything I put and put lower numbers. He wanted dollar amounts that I spent now, not if I actually had money. I dont fill my prescriptions because of what they cost. If I had money, I would!!!

Thanks guys
Great site.
I feel like I can't talk to anyone about this due to embarassment. Feels good just to get replies.

[tobee43]

please duke...you need to seek out someone else that will work with your REAL numbers...which includes your meds.

payments in a 13 can and will be adjusted accordingly. see someone else...call maybe your state bar assoc...i went to CCC site and hooked up directly with the US BK court recommended atty's site...ended up with a GREAT atty.

wish you the best and we are all in the same boat here...and that's to provide a helping hand and some support when needed!!

keep us posted!!!!

[ccsjoe]

Hey dukedog,

Based on what you said, I am a substantially above-median CH7 filer, but I found an attorney who wanted to work with me and made the numbers work without having to fudge anything. BK mill lawyers sometimes tend to shy away from the simple, straight forward no-asset CH7's or want to put them in 13's. When they have to work to put them into 7's, they'll pass on the client. Hence the need to interview a few and find one that you are comfortable establishing a working relationship with.

[momofthree]

Sounds to me that what you need to do is stop paying your creditors and fill those prescriptions. Get your medical history in order so that when it comes time, you can document the amount on your schedule J. They cannot reject valid medical expenses. As far as other expenses, there are what are called "IRS standards" and you can view them here: http://www.justice.gov/ust/eo/bapcpa...anstesting.htm. If you claim over the IRS standard expenses, you can expect an objection, and your attorney may simply have been replacing your numbers with the standards. For example, a single person is allowed $526/mo for food, clothing, personal care items, & household supplies. If you listed $300 just for clothing, you're going to have issues. Even if that's what you truly spend (or would spend if you had the money), they expect you to scale back to the national average and pay your creditors their due. Make sense?

That said, definitely shop around for an attorney who will fight for you. I've read many posts from people who said their attorneys "massaged" their numbers to get them into a ch.7. A good attorney will know what will fly in their district and what won't, and how to work those numbers for YOUR benefit. Good luck & keep us posted.

[tobee43]

That said, definitely shop around for an attorney who will fight for you. I've read many posts from people who said their attorneys "massaged" their numbers to get them into a ch.7. A good attorney will know what will fly in their district and what won't, and how to work those numbers for YOUR benefit. Good luck & keep us posted.

great advise momo....and duke momo's in a 13 and would know better than i on that matter!