Lawyers that steer filers into CH13?

[Diesel73L]

I am only just now starting to look at consultation with a lawyer. Even though we will be a no-asset (more than adequate exemptions due to our underwater home) case there are a lot of variables with my wife's income being zero at right now (she is on unpaid maternity leave at this point), rising later this month, continuing at that level until June, and then being cut in half in July when she begins collecting unemployment. Since we know we can't pay our cards once that happens I see no point in continuing to pay or use them now. However, between now and then we need to buy car, sell a car and convert the proceeds to exempt items, pay for childcare, and hopefully prepare for a very lean first 12 months post filing, which I think is wise to consult a lawyer on. However, I am worried that a lot of lawyers really push CH13 hard simply because it means more money for them. I've read a lot of stories here about it and I've even seen from websites that I've browsed that a lot of firms talk up CH13 on their websites-one guy in our area even has "CH13" as part of his web address!

Since we're going to be filing with a gross income of about $1100/mo under median for our area, do we have to worry about being pressured into a CH13 or does it really only happen with over median filers? I've run through our I&J and consistently come up with less than $100 of DMI as well. Furthermore, with my wife on unemployment and me in my current job I can't imagine how we would afford a CH13 payment plan AND keep our home AND keep her vehicle AND feed ourselves/keep the lights on. Are there questions I can ask to feel out whether a firm is out to pressure folks like us into a 13?

[AZNoName]

I think by doing research on this site, you've got enough common sense to know that a Ch13 probably isn't right for you. Most people would like to get into a CH7, but don't either because they make too much money, would like to keep non-exempt assets, want to strip a 2nd mortgage, protect a co-debtor, etc.

If an attorney tries to fit you into a 13, I would like to hear a good explanation for it!

[HHM]

That risk is over-blown. Does it sometimes happen, sure, it is a widespread problem, not really. Yes, chapter 13's bring in more money, but they are also (usually) 3 times more work, so there is a trade off.

Chapter 13, especially now, are a very powerful tool and shouldn't be feared. But as with any tool, it has its specific uses.

If you are under median at time of filing, and have a good faith basis for filing as chapter 7, you should be fine.

[tobee43]

we had the problems with attys that were attempting to talk us into a 13 as opposed to a 7. the irony of that situation was all of our income was exempt by the ss act! go figure. we continued our search for atty's until we found the one that was most supportive of what we felt was right for us and what we were most comfortable with (if one can be "comfortable at all in a situation like this).

that being said, a chapter 13 is not the end all, there are many success stories on this site that fared extremely well after going into 13's. i know it's a scary situation.

[lillymarlene]

For what it's worth, I'm below the means for my state and had a choice between a 13 or a 7. I chose the 13, since I wanted to keep certain non-exempt properties to keep what's left of my small business going. Good paying jobs, when you are almost 60, are simply too hard to find.

[keepsmiling]

How are you handling your wife's school loan repayment?
That may come up.

[tobee43]

For what it's worth, I'm below the means for my state and had a choice between a 13 or a 7. I chose the 13, since I wanted to keep certain non-exempt properties to keep what's left of my small business going. Good paying jobs, when you are almost 60, are simply too hard to find.

yes, i received an education from jb today on why one would opt for a 13 as opposed to 7. makes perfect sense. also there has as mentioned many that have been successful and very pleased with the result of the 13 and how it allowed them to get back on their feet. goes to show, one learns something everyday. to me a 13 was too much to handle! but that was me, and we were in no position to handle one anyway.

keepsmiling; yeah those terrible loans seem to always peek their ugly heads up to the surface of these situations.

[Diesel73L]

How are you handling your wife's school loan repayment?
That may come up.

We're not in default on any debt right now, but we have the sense to know that the track we're on is unsustainable, which is why we're at this point. She'll pay her student loans through the end of June when she'll be laid off, at which point she'll get them deferred. You can defer them for up to three years while you're unemployed. So basically, by the time we file (probably October), her loans will have been long deferred. Then she has 99 weeks (unemployment) to figure out what to do next.

[keepsmiling]

Good, you need to find something else to replace that expense. Otherwise it will be considered "dmi".