Tobee43, I'm confused. Why would those expenditures be questioned if filing a chapter 7 rather than a 13(which is exactly what we did)? You are allowed in a 7(at least in my district) to claim your mortgage and mortgage arrears if you intent is to keep your home. No one (at least not yet- knock on wood) has questioned our intent. And honestly, we wouldn't have qualified on the means test without the mortgage arrears. We absolutely intend on staying and paying if we can get a loan mod. Heck, we are the ones with the 3 dogs (all big and on the bad dog list). We are going to have a heck of a time trying to rent if it ever comes down to that! We really need this loan mod and sadly, really can't afford to stay in the house without it.
Alo, if I were you, I would first try to understand whether or not I actually qualified for a chapter 7. I would live and breathe that means test for a little while. (I used Quicken to record all of my expenses. I knew where every penny went.) Then, if I did qualify for the 7, I would list the pros and cons of filing both. For me, I was able to justify the 7. I have a 2nd and a 3rd, and if I get my loan mod, I'll eventually try to settle them (rather than strip the leins in a 13). Yes, I owe federal taxes and yes, I'll still have to pay interest and penalties, but I didn't want to be tied down in a 13 if I didn't have to be. Even cramming down my interest rate on my car loan didn't justify the 13 for me. The budget was too tight (really non doable) and I knew that any emergency would send us over the edge. We had at least 3 "emergencies" since we decided to file back in March- our sump pump for sewage went in our basement, our well tank needed to get replaced and our dog ended up sick over Christmas with $750 of medical bills that we wouldn't have been able to afford if we were in a 13. I have 4 kids, 2 of them teenagers, and 2 small children. Emergencies for me come up every other month.
I wish you well! The best advice I could offer is get educated! I joined this forum in March right after we decided to file. I have been here almost every day since, educating myself - mostly reading, sometimes posting. Getting to know myself better. Understanding what got me to this place, but mostly realizing that this was the BEST business decision I could have ever made for my family. I just wish I would have made it sooner. I hope I stay a 7. I know there is still a chance the US trustee could step in and try to convert us to a 13, but whatever happens, I will still be in a better place than I was. Good luck to you!!!
Alo, if I were you, I would first try to understand whether or not I actually qualified for a chapter 7. I would live and breathe that means test for a little while. (I used Quicken to record all of my expenses. I knew where every penny went.) Then, if I did qualify for the 7, I would list the pros and cons of filing both. For me, I was able to justify the 7. I have a 2nd and a 3rd, and if I get my loan mod, I'll eventually try to settle them (rather than strip the leins in a 13). Yes, I owe federal taxes and yes, I'll still have to pay interest and penalties, but I didn't want to be tied down in a 13 if I didn't have to be. Even cramming down my interest rate on my car loan didn't justify the 13 for me. The budget was too tight (really non doable) and I knew that any emergency would send us over the edge. We had at least 3 "emergencies" since we decided to file back in March- our sump pump for sewage went in our basement, our well tank needed to get replaced and our dog ended up sick over Christmas with $750 of medical bills that we wouldn't have been able to afford if we were in a 13. I have 4 kids, 2 of them teenagers, and 2 small children. Emergencies for me come up every other month.
I wish you well! The best advice I could offer is get educated! I joined this forum in March right after we decided to file. I have been here almost every day since, educating myself - mostly reading, sometimes posting. Getting to know myself better. Understanding what got me to this place, but mostly realizing that this was the BEST business decision I could have ever made for my family. I just wish I would have made it sooner. I hope I stay a 7. I know there is still a chance the US trustee could step in and try to convert us to a 13, but whatever happens, I will still be in a better place than I was. Good luck to you!!!
MAKE SURE AND VISIT Tobee's Blogs!
Comment