filed for chapter 7 yesterday

[dumbdumb]

My lawyer said i might not be able to file chapter 7 because my income is too high? apparently i make around 44000 per year and that is above the median income for Nevada. Why he didnt tell me this before i filed i dont know.. i feel like a bait and switch case.

anyway my question is does it matter what my debt is or does is just go by your income?
also i co-signed for student loans for someone else... The loans are basically in my name and i am liable for the payments just as the actual borougher. they are listed on my credit report but i didnt list them in my budget because they have not started yet.. the payments begin in about 5 months from now. about $300 per month.
I dont know what happens from this point now that i filed. i guess i am waiting for some kind of packet in the mail. then 341 meeting???
can someone explain what happens from here? this is very stressfull .. i cant stop thinking i will be forced into chapter 13 for the next 5 yrs and will be barely surviving from paycheck to paycheck. so stressfull not knowing what happens next i cant eat or sleep.

[freshstart06]

I am new here but did you not take the means test??? the Means test would have told you if you qualify for chaper 7 or not. My husbands "gross" income put us over the median but after the taxes and the allowed deduction we qualify with flying colors we did not even have to complete the entire form the means test told stated that we passed the means test and we did not have to continue the remaining questions.

go to www.legalconsumer.com this is the actual means test, it will automatically have your states allowed deduction inputed after you answer a few questions. Be as honest as possible don't leave anything out because the can find out.

[BKTango]

My lawyer said i might not be able to file chapter 7 because my income is too high? apparently i make around 44000 per year and that is above the median income for Nevada. Why he didnt tell me this before i filed i dont know.. i feel like a bait and switch case.

anyway my question is does it matter what my debt is or does is just go by your income?
also i co-signed for student loans for someone else... The loans are basically in my name and i am liable for the payments just as the actual borougher. they are listed on my credit report but i didnt list them in my budget because they have not started yet.. the payments begin in about 5 months from now. about $300 per month.
I dont know what happens from this point now that i filed. i guess i am waiting for some kind of packet in the mail. then 341 meeting???
can someone explain what happens from here? this is very stressfull .. i cant stop thinking i will be forced into chapter 13 for the next 5 yrs and will be barely surviving from paycheck to paycheck. so stressfull not knowing what happens next i cant eat or sleep.

The Nevada median for a 1 member family is $40,682. Just by that alone you are around $4000 above the median. If you have more than 1 person in your family then it's a different story. Unfotunately depending on some varing situations it goes by income not debt.

I have to ask this question, did you not read over your paperwork as you sat there in the office or somewhere and signed them? You have to sign all of the bk paperwork before it is filed, on one of the papers filed it will state there whether chapter 13 or chapter 7 is being filed/requested.

[dumbdumb]

The Nevada median for a 1 member family is $40,682. Just by that alone you are around $4000 above the median. If you have more than 1 person in your family then it's a different story. Unfotunately depending on some varing situations it goes by income not debt.

I have to ask this question, did you not read over your paperwork as you sat there in the office or somewhere and signed them? You have to sign all of the bk paperwork before it is filed, on one of the papers filed it will state there whether chapter 13 or chapter 7 is being filed/requested.

thanks for the replies... the paperwork i signed was for chapter 7 ... the lawyer wrote in at the top of the page i might have to file for chapter 13 and made me sign that too.

i took several means tests online and passed. it said also that i did not have to complete the test.

i have another question now... if i dont qualify for chapter 7 must i file for chapter 13 at this time? or can i wait until i absolutely have to?

[freshstart06]

Like everyone told me you have to use your gross income, the income before taxes, However once you add your taxes and allowed expenses and it still states you don't have to complete the test then you should be okay. What I did was used gross income and downplay the taxes (for worse case, i reduced the taxes by $500 and medical) and I still passed. the test told me that I did not need to complete. However, my situation is different, we are a family of 6, I have an ongoing medical condition, and my job requires expenses that out weigh my income.

[dumbdumb]

I am new here but did you not take the means test??? the Means test would have told you if you qualify for chaper 7 or not. My husbands "gross" income put us over the median but after the taxes and the allowed deduction we qualify with flying colors we did not even have to complete the entire form the means test told stated that we passed the means test and we did not have to continue the remaining questions.

go to www.legalconsumer.com this is the actual means test, it will automatically have your states allowed deduction inputed after you answer a few questions. Be as honest as possible don't leave anything out because the can find out.

thank you for the link!... i passed this test also. i am still worried though.

[freshstart06]

Don't worry, if you passed then you will be fine, what I am seeing is that mose of your gross income is taken away by taxes and other regular income deductions, then you deduct the allowed allowence for your state then you can finally see where your money is going because after all of that you are in the negative. Before we decided to file bankruptcy, we tried to elimate whatever we could and believe it or not there was nothing to elimate. I change phone service carriers but everything else was necessary. Our credit card debt between both my husband and I is only $900. Our rent is high but out here in order to live in a decent home you have to pay the price however, the prices are going down so that is better. Our bank accounts are always negative right before payday. We had to use payday loans to keep the bank accounts from negative status and that made things worse. I can go on... We have made some mistakes in the past but we just have to reduce our housing expense until I can work again and we get back on our feet. Chapter 13 is not an option for us because we are in the negative there is no way they can make payment plans for us.

[jal1129]

Where the problem may come in is just because you list expenses does'nt mean the trustee and/or judge will allow them. That probably is what the lawyer for the op is referring to. The trustee and/or judge will look over the expenses and have to approve them. What they will accept varies by trustee/district/state. So if you are over the median income and list expenses to come out in the red and then the trustee disallows a particular expense there you are with disposable income.

[freshstart06]

What I am doing is using the allowed expenses for my state, even though my actual expense are more in some areas I refuse to go over what is allowed by my state, I do not want any red flags plus I want to prove to them that by even using the states matrix my family is still negative.

[jal1129]

I was referring to I vs J, not the means test.

[freshstart06]

so they will consider other expense outside of allowed allowence.

[BKTango]

so they will consider other expense outside of allowed allowence.

That is not always entirely true.

[SinkingFast]

so they will consider other expense outside of allowed allowence.

It really depends on the Court you file in, maybe even the Trustee you draw, what will and won't be allowed.

In our area, rent is outrageous compared to mortgage payments. We have a big University here and college students drive the rental market. Our rent was/is $350/month more than the allowable for Rent/Mortgage and Utilities. Our rent and utilities went thru just fine. Not one question.

On the other hand, our attny had to cut the $$$'s we spend on food on Sched J nearly $500/month less than the Schedules allowables.

It's really gonna depend on where you live and the Trustee you draw as to what's gonna be acceptable.

[freshstart06]

In regards to the schedules what I am doing is pretty much matching what is allowed and and not going over. I hope this guarantee no problems.

[JRScott]

Many lawyers counsel their clients that they might be forced into chapter 13, that caution is actually in many cases pretty standard. Now my lawyer didn't do it for me but I"m so far below the state median income I'm sure he didn't feel necessary to. Being on the border he probably wanted to warn you of the possibility.

Good luck on everything.