When to file?

[Wunsche]

I pay about $230 for medical/dental/vision insurance every month. My car payment is $384 a month.

I have a spreadsheet with all of my expenses and there isn't any room left when I subtract what I take home from my expenses.

[bcohen]

With $2,400 in debt payment each month, even a $500 plan payment should be a relief if you end up in a Chap 13.

This kind of thinking doesn't really hold water. If Chapter 13 bankruptcy were really such a good deal for the average consumer, then banks and finance companies wouldn't have spent hundreds of millions of dollars lobbying Congress and running TV and print ads in effort to pass the bankruptcy law of 2005. The truth is that while Chapter 13 bankruptcy is a good deal for people who truly need it, anyone who is considering a Chapter 13 solely because of the "means test" should find a way to reduce their DMI to qualify for a Chapter 7 instead.

[keepmine]

I agree with Ladyin the Red. Nobody said a Chapter 13 was supposed to be a good deal. However, it can well be the best alternative. There is a huge difference between a $2400/month payment that will last for ever and a $500/month payment that will end in 5 years. Sometimes reducing DMI can only go so far.

[keepsmiling]

Spam alert

[Slingerland]

SIGNING OFF AND CANCELING MEMBERSHIP ARE YOU HAPPY NOW JACKOFF?

I can't speak for keepsmiling, but I'm happy!

[LadyInTheRed]

I can't speak for keepsmiling, but I'm happy!

He didn't follow through on his threat. I helped him out.

When you see this kind of blatant spam, don't hesitate to hit the little triangle at the bottom of the post, just towards the center from the left, to report it to the moderators.

[justbroke]

Apologies for the misinformed poster who was able to post some very inaccurate and improper information.

• If you're in a Chapter 13, you should NEVER reduce your withholding to SINGLE/0. Almost all Chapter 13 Trustees know this trick, and many Districts require you to turnover every Tax "refund" issued annually. (Most Chapter 7 Trustees, unless they are "new", will also see this trick as well. They are not foolish.)
• If you're in a Chapter 13, the Trustee will look at your overwithholding and underwithhlding. This is why they need the last 2 year's of IRS Form 1040. They use this to determine your average income and to also see what types of deductions you claim.
• Charitable deductions must be usual and continuing. In other words, you must have been doing it for some time. You can't just fill out a Form B22-A/C and start claiming this deduction. This is one the Trustees look at and demand documentation (cancelled checks, charitable receipt, tax returns).

Those are just a few things. I hope no one took the poster seriously. Let me just remind everyone that this is a serious forum. We are trying to help people through bankruptcy. We are not advocating for or against bankruptcy as each person must find the right solution for their needs.