Bankruptcy vs DMP

[JLM0706]

401k loan payments don't count in the means test expenses for ch7 but does count in ch13.

Your arrearage on the house can be paid from the money you will stop paying the DMP. Usually folks stop paying credit cards months before the bankruptcy to pay for the lawyer as well. Money going into the DMP is like flushing money down the toilet if you're going to BK.

I would surrender the Jeep and get a fresh start with no payments on a used cash car. If you are borderline to qualify for a ch7, you might have to do a 722 loan to increase the expenses on schedule J.

If you can squeeze into a ch7, I think that's the way to go.

That is what I was hoping for (Chapter 7). However, the attorney today told me the Kansas income level for Ch 7 is 66,000. I make 75,000 (gross). I do have another consult this Friday, so hopefully this dude will know some tricks.

[JLM0706]

That is what I was hoping for (Chapter 7). However, the attorney today told me the Kansas income level for Ch 7 is 66,000. I make 75,000 (gross). I do have another consult this Friday, so hopefully this dude will know some tricks.

I should add- I have not been able to make DMP payments for a couple months. I keep having unexpected life events that are making it tough to keep up.